Melbourne Property News Monthly Wrap – March 2026

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Melbourne Property News Monthly Wrap

Melbourne market powers through March

Over March’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 3,411 auctions. 2,164 properties sold. 1,480 at auction, with 740 passed in. 684 properties were sold before auction & 0 properties sold after auction. 2,346 were sold by private sale. The auction clearance rate in March averaged 76%.

What home sellers need to know right now

Distractions like rising inflation or fuel shortages have not impacted adversely on the bustling Melbourne market. Looking more broadly, the national market conditions are split. Both Melbourne and Sydney values flatlined through February/March. Melbourne’s vast middle market is getting some downward pressure from interest rate rises, plus local tax policies that have served to drive investors out. It’s a different story in other smaller capitals, which are still seeing strong home price rises.

Perth, Brisbane and Adelaide are posting solid value gains (above 1% each month, says Cotaility) pumped up by low supply, mass immigration and plenty of investor interest. In South East Queensland’s case the heat in the market includes domestic buyers flowing from interstate – predominantly retirees and investors.

Plenty of new homes in Melbourne

Melbourne gets about 4800 newly constructed homes every month. Plenty built on Melbourne’s outer fringes are snapped up by immigrants (2300 arrived every week in 2025, totalling 121,000) and assisted first home buyers. Added to this, many recent immigrants in these zones buy investment properties as soon as they qualify for increased borrowing capacity. This part of the Melbourne market is doing well. Sydney, with less supply, is hitting a broad affordability ceiling, sharpened by rising rates. The consequences of overvaluation is looming there.

Each capital has its own characteristics, but it’s the combination of low supply and high immigration that drive rising prices. Perth supply numbers for example are currently 50% below their 5 year average. Combine this with annual immigration running around 60,000 (including ‘skilled’ visa holders and students) and values will keep shooting up.

Will conditions change this year?

The Melbourne market is steady this Autumn and a good platform for a home sale. There’s some uncertainty looming about overseas conflict but no real short term shifts in market confidence. Listings are usually high at this time of year and rise further in the run up to Easter.

Despite the current flatlining in Melbourne values some analysts (like Hotspotting) are still predicting a positive upkick this year, based on the property cycle ticking out of the low period into the next phase. This cycle repeats like clockwork and the next phase pending is value growth.

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We’ve successfully negotiated hundreds of home sales through all kinds of market conditions. Our expert guidance keeps you on the best path to success and your home’s maximum sale price. It means we’ll steer you through all stages of the process to the best possible outcome. You worked so hard to build your equity and home ownership – make sure you make the most of your years of effort and maximise your sale price with Vendor Marketing!

Craig Knudsen
Principal Advisor
Vendor Marketing

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