Melbourne buyers warned as auction market heats up

Melbourne’s winter auction market is heating up as rate cuts, tight stock and renewed buyer confidence spark strong competition across key suburbs. Picture : Nicki Connolly

Melbourne’s winter auction market is bucking the seasonal trend, with fresh data and renewed buyer confidence pointing to a heatwave beneath the surface of a cooling calendar.

There are 952 homes set to go under the hammer across the city this weekend, a 14 per cent drop from the same time last year.

Another 941 auctions are already scheduled for next week, down just 9 per cent, in what experts say is a far softer seasonal dip than usual.

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REA Group senior economist Eleanor Creagh said while the auction volume is lower, market conditions have flipped — and buyers are back in force.

“Melbourne led the country for monthly price growth in May,” Ms Creagh said.

“It’s clear confidence has returned, and interest rate cuts in February and May have lifted borrowing capacity and encouraged buyers to move quickly.”

Home prices rose 0.79 per cent in May according to PropTrack, the strongest monthly gain of any capital city.

Melbourne’s dwelling values are still 2.85 per cent below their previous peak, but Ms Creagh said the city’s underperformance over the past five years, just 17.6 per cent growth since March 2020 compared to 60 per cent nationally, now gave it a competitive edge.

“Relative affordability is drawing buyers back in,” she said.

“That’s why activity is holding firm even during what’s typically a slower time of year.”

REA Group economist Eleanor Creagh says Melbourne’s affordability advantage and rising prices are luring buyers back faster than expected this winter.

Suburbs with the most auctions this weekend include Reservoir, 24 auctions, Mount Waverley, 19, Richmond, 15, Craigieburn, 14, and Wollert, 13.

Ni Advocacy director and buyers advocate Kevin Ni said savvy buyers were shifting focus away from cookie-cutter stock and honing in on quality, character, and long-term liveability.

“Buyers are far more educated now,” Mr Ni said.

“They’re looking for liveability, not oversupplied towers.”

“We’ve seen people spend six months stuck in limbo because they wouldn’t budge on their dream suburb.

“The advice is: be realistic and flexible.”

Ni Advocacy director and buyers agent Kevin Ni says educated buyers are now chasing scarcity and liveability and warns those waiting on dream suburbs risk missing out.

That mindset is driving strong interest across a range of listings this weekend, including a three-bedroom home at 14 Emery Court, Altona, where buyers are lining up for a slice of quiet, beachside living.

The peaceful court location, vaulted ceiling, home office and landscaped yard have drawn attention from families and investors alike. The guide is $990,000-$1.08m.

This Altona three-bedder near the beach has drawn strong interest from families and investors, with its vaulted ceiling and landscaped garden a key drawcard.

Backed onto Waterford Valley Golf Course, this renovated Rowville home boasts underfloor heating, premium appliances and more than 100 inspections.

In Rowville, more than 100 groups have inspected 2 Moama Place, a renovated home backing onto Waterford Valley Golf Course.

The three-bedder features American Oak floors, Bosch appliances, underfloor heating, and even a shed with a kitchenette — and is tipped to fetch $1m –$1.1m.

Over in Preston, buyers priced out of Brunswick and Northcote are flocking to 9/26 Tyler Street, a rear townhouse in a boutique complex guided at $600,000 –$650,000.

The mix of downsizers and first-home hopefuls has added a competitive edge.

Priced-out inner north buyers are flocking to this tucked-away Preston townhouse, which blends privacy with proximity to trendy suburbs.

Set in the heart of Kew’s elite school zone, this architect-designed five-bedroom home features concrete floors, a sparkling pool and EV charger.

At the prestige end of the market, a five-bedroom architectural home at 14 Hunter Street, Kew, is drawing serious interest from families looking to secure a foothold in the private school belt.

Behind its striking modern facade are polished concrete floors, a sparkling pool, butler’s pantry, Miele appliances and EV charger, with a guide of $3.8m-$4.1m.

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