Melbourne Property News Monthly Wrap – June 2026

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Melbourne Property News Monthly Wrap

Govt bans SMSF residential investment in June

Over June’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 1,875 auctions. 1,091 properties sold. 783 at auction, with 554 passed in. 306 properties were sold before auction & 2 properties sold after auction. The clearance rate averaged 68.25% – down on May’s 72%. 1,799 homes were bought by private sale.

June clearance rates trend lower 

June’s auction market started quietly with the Kings Birthday long weekend but quickly got back to business across the month. Clearance rates continued to ease. Rates were around 80% in February, then in the 70% range through March, April and May (REIV). June saw clearance rates dip into the 60% range for the first time this year. This drop reflects buyer uncertainty after interest rate rises and the negative pressure on residential property investors by State and Federal governments. Private sales however have remained strong across all months. 

Most pressure is on the top quartile

According to property analysts Cotality, the median Melbourne home value is currently $812,621, after going down 0.8% in May. But it’s downward pressure on values at the top end of town that are effecting the median most – with the upper quartile falling 4.1% over the three months to the end of May. 

June ban on Self Managed Super Fund residential investment

In June’s last week the Federal Government announced a ban on Self-Managed Superannuation Funds (SMSFs) using new Limited Recourse Borrowing Arrangements (LRBAs) to purchase residential investment property. The ban starts mid-August. It seems odd to discourage Australian workers from trying to build a self sufficient retirement. A retirement to state housing and a meagre pension is a poor alternative. Is this what they think Australians want?

A better sale price by 5 to 10%

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There’s underlying strength in the Melbourne market 

Despite short term pressures the Melbourne market is still strong. Population growth, migration and a persistent supply/demand imbalance are clear fundamentals for value growth in the longer term. There are keen buyers wanting quality homes and those homes will sell, when presented at their best and marketed correctly!

Craig Knudsen
Principal Advisor
Vendor Marketing

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