Melbourne Property News Monthly Wrap – September 2026
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Private sales spike in September
Over September’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 1,668 auctions. 1,024 properties sold. 730 at auction, with 406 passed in. 292 properties were sold before auction & 2 properties sold after auction. The clearance rate averaged 72.25%.
1,972 homes were bought by private sale. Private sales dominated the market through September – nearly three times more than the number of homes sold under the hammer at auction.
September ends with a rate rise
The Reserve Bank lifted the cash rate to 4.6% on September 29. With the cash rate at 4.6%, typical home loan rates will rise to roughly 6.5%. On an average Victorian mortgage of $731,000, that adds $119 to monthly repayments (making for a total increase of about $480 since January).
Every interest rate hike strips roughly 2% to 3% off maximum borrowing capacity. After a rate rise, buyers who want your property will be less gung-ho and will try to negotiate more. This makes it more important than ever to have someone with deep negotiating experience in your corner representing you!
What’s happening with home values?
Regarding movement in values, Melbourne’s median house price in September was $920,432, after easing 1.1% in August. This represents a decrease of about 5.7% over the last 12 months. Higher-value homes are under the most pressure, down by 10.5% from the last peak in March 2022. Lower-priced homes continue to show greater resilience, and affordable units are also holding their value very well (Domain).
Rental yields up, but landlords are moving in!
Rental yields are increasing in Melbourne, with annual rent growth running at around 5.0%. However, the percentage of landlords wanting to sell their property or move into it themselves keeps rising. As a reason for eviction, this has gone from a third to almost half (45.5%) over the last 12 months. Owners who are renting elsewhere are now consolidating by moving into their investment properties, further reducing the rental supply.
Some pockets in Melbourne are doing well
It’s a softer spring market than usual this year, but some high-demand pockets and lifestyle areas are still shining. Realestate.com.au reports surging buyer competition per listing in Caulfield East, as well as in eastern hill suburbs like Belgrave Heights and Upper Ferntree Gully.
Keep your expectations real
In this market, vendors have to determine their target price skilfully. We analyse all recent sales genuinely comparable to your property to give you the most accurate valuation. Overpricing reduces engagement with potential buyers.
Move now and still gain in 2027
No one has a crystal ball, but analysts are predicting a mid-2027 rebound in home values. There’s plenty of time to sell your property now and buy again before that bounce-back. The big banks are all saying Melbourne will remain subdued through 2026, but housing supply shortages and population growth will still trigger a price recovery by mid-2027.
Vendor Marketing makes sure your property looks its absolute best!
From kerbside appeal to interior staging, Vendor Marketing helps you get your presentation and styling as good as it can be. It’s one of the best ways to stand out and capture buyer attention.
Outdoor spaces should also be a highlight. Garden areas should look perfect, as gardens are supersized outdoor living rooms for much of the year.
We’ll spot any minor flaws in the home you may not be aware of. Because these can become negotiation points for picky buyers, it’s wise to have them fixed before going to market.
For more information about how Vendor Marketing is your best pathway to a successful home sale, call us!
Craig Knudsen
Principal Advisor
Vendor Marketing
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