Melbourne Property News Monthly Wrap – May 2025

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Melbourne Property News Monthly Wrap

May ends with a surge in private sales

Over May’s five weekends the Real Estate Institute of Victoria (REIV) recorded more than 3,324 auctions. 2,523 properties sold. 1,815 at auction, with 484 passed in. 707 properties were sold before auction & 1 property was sold after auction. The clearance rate averaged 84.5%. 1,483 homes sold by private sale.

Rate cut supercharges the market

Big news for the Melbourne market this month was the RBA cutting the cash rate to 3.85% on May 20. The effect was almost immediate. Auction numbers are leaping up, buoyed with buyers armed with increased borrowing power.

Big jump in private sales

There was an extraordinary rise in the number of private sales at the end of May. Numbers jumped from 178 in May’s third week and 193 in May’s fourth week, to 734 in the last week. Buyers pushed the button in a big way! It appears buyers are scooping up left over private sale stock (or properties that have stretched out in days on the market) in fear they will miss out at auction now competition is increasing.

What’s happening in the Melbourne market?

While back-pedalling and underperforming for a few years compared with most other capitals, the Melbourne market has been winding up and is poised for a strong recovery.

According to market analysts PropTrack, the latest data shows Melbourne values not only edged up marginally in each of the last five months, but the April rise was 0.87%, outpacing the other capitals and the strongest monthly Melbourne increase since 2021. The anticipation of a rate cut, and then the rate cut itself, is flicking a big switch.

The swing to a sellers’ market

Current indicators signal we’re swinging from a buyers’ market to a sellers’ market. It takes a while to transition. Buyers are still cautious. But right now we’re in a sweet spot, with great opportunities for both sellers and buyers. The key for buyers is buying quality, wisely. The key for sellers is having the right preparation and getting all the ducks in a row that will bring a maximum sale price.

The boom in June

Looking ahead into June, the King’s Birthday long weekend has about 500 auctions scheduled, rocketing up to 1000 for the following week. The numbers look more like Spring than Winter. The extremely high clearance rates right now, consistently in an eighties percentage, is also great news for sellers.

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Craig Knudsen
Principal Advisor
Vendor Marketing

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