Your Besser Guide to the Real Estate Market June 5th

As we wrap up May, the Melbourne real estate market is showing the kind of signs that get both buyers and sellers paying attention. According to the latest data, Melbourne’s median property price rose by 0.4% in May, a modest but meaningful uptick that reflects the growing confidence building in the market.

A recent article in the AFR titled “First-time buyers fuel property price rises” highlighted this very sentiment. Tim Lawless, Director at Cotality (formerly CoreLogic), was quoted saying that while interest rate cuts alone won’t ignite another housing boom, due to ongoing cost-of-living pressures and high household debt, there’s no denying the impact recent cuts are already having on buyer behaviour.

In our experience at Besser+Co., the February interest rate cut has now taken full effect, and with the second cut in May, we’re seeing a noticeable change in buyer activity, especially among first-home buyers. There’s new energy and confidence in the air, and it’s translating to more boots through open homes and more conversations around finance and pre-approvals.

Much has been said in the media about clearance rates improving, but from our perspective, this shift is about more than just buyer sentiment. It also reflects the real needs of some vendors to sell, whether due to changes in lifestyle, financial pressure, or opportunity. So while buyer demand is certainly heating up, motivation on the vendor side is also starting to rise, a dynamic that’s driving more activity overall.

In the last fortnight alone, we’ve seen a significant increase in first-home buyer activity across our open inspections. It begs the question: Will supply keep up with demand? For the first time in years, we may begin to see apartment prices start to rise, particularly in suburbs offering lifestyle, infrastructure, and value.

According to SQM Research, listings have been steadily increasing, which suggests that as buyer sentiment improves, so too does vendor confidence. That balance will be critical in determining just how strong this next market phase becomes.

On the rental front, the story remains consistent: tight supply and strong demand continue to push prices up. At Besser+Co., our leasing performance speaks for itself. In May, our properties averaged just 5.3 days on the market, from availability to being leased, a clear reflection of how little rental stock is out there and how quickly tenants are making decisions.

With market momentum building, interest rates falling, and both buyer and seller sentiment on the rise, this could be one of the best windows we’ve seen in years to invest or expand a property portfolio. And for those sitting on the sidelines, waiting for the “perfect moment”, his might just be it.

As always, if you’re considering your next move, whether buying, selling, leasing, or investing, don’t hesitate to reach out.

Feel free to get in touch by clicking one of the links below to schedule in a time to speak.