Buyer’s Market Emerges in Melbourne’s $2M+ Homes

I wanted to share an update on the current state of the Melbourne real estate market and what we’re seeing on the ground.

One thing remains clear: regardless of interest rates or broader geopolitical uncertainty, quality property continues to sell well. Well-located, well-presented homes with strong fundamentals are still attracting good buyer interest and achieving solid results.

We have seen a noticeable pullback in the $2,000,000+ market since October last year. To date, this has largely been driven by domestic factors such as inflationary pressures and higher interest rates. While global geopolitical issues haven’t yet had a direct impact on the Melbourne market, we are starting to see early signs of buyer caution, with clearance rates softening slightly.

For buyers operating in this price bracket, the market is currently far more balanced – and many would argue it’s now a buyer’s market. This presents a genuine opportunity for those who are well-prepared and decisive.

The apartment market, however, has not experienced the same level of domestic impact. First-home buyers continue to be motivated by the 5% deposit guarantee, and this is translating into strong attendance at open inspections. That said, presentation is critical – it is very clear that apartments presented impeccably are the ones attracting multiple buyers and selling faster.

Another significant trend we’re seeing is the return of interstate investors to the Melbourne market, at a pace I haven’t seen for many years. In many cases, they are buying sight unseen, subject to finance and building inspections. With apartment values having corrected over the past five years and strong indicators suggesting the market has reached the bottom, conditions are lining up for growth. First-home buyers re-entering the market, combined with renewed investor confidence, means many see now as an ideal time to buy.

On a personal note, this month I had the pleasure of joining Adam Joske on Ticker News, where we discussed the real estate industry from the perspective of sales agents – including what agents actually get paid, the myth that all agents earn enormous incomes, and the most common mistakes vendors make when selecting an agent.

If you’re considering selling or are currently speaking with agents, I highly recommend watching the full interview by clicking one of the images above or below.

As always, if you’d like to discuss how these conditions relate specifically to your property or plans, please feel free to reach out. I’m always happy to provide tailored advice.

Feel free click on the link below to schedule in a time to speak.

Kind regards,

Dion Besser
0412 556 443
dion@besserco.com.au