Melbourne Property News Monthly Wrap – May 2026

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Melbourne Property News - Buyer Marketing

Negative gearing binned in May. What buyers need to know!

Over May’s first three weekends the Real Estate Institute of Victoria (REIV) recorded more than 2,118 auctions. 1,276 properties sold, 890 at auction, with 515 passed in. 386 properties were sold before auction with 0 properties selling after auction. The clearance rate averaged 72.33%. 1,574 homes were bought by private sale.

This May it feels like the property market is changing week by week with shifting economic conditions and government policy. May started with a rate rise of 25 points, to 4.35%. 

Why the government acted on negative gearing

The May 12 Budget decision to restrict most negative gearing is supposedly aimed at increasing the supply of new entry level homes. But It’s a familiar scenario – a Sydney-centric Prime Minister preoccupied with local issues. In this case the inflated Sydney property market, where homes are now costing nearly twice as much as everywhere else in Australia. Speculation dominates the market there and new housing supply is abysmal. The Sydney median house price is now $1.76m. So first home buyers there are truly being locked out. Melbourne houses are far more accessible with a $1.08m median. Sydney units average $975k, double the Melbourne median of $460k. So how does the government address Sydney’s affordability problem? Slug the whole country with more taxation of course!

What will investors be targeting now?

The investor base is not only people or groups with multiple property portfolios. It includes young marrieds, tradespeople, mum and dads, professionals and small business owners. It’s all kinds of people. All these highly motivated investors wanting to secure their future, are now being channeled into investing in new homes in city fringe developments, or new units and townhouses. These can still be negatively geared. With established mid-range homes now ruled out for negative gearing, investors will turn to properties that fit the bill for the revised (down) mortgage budgets. With all the new attention on the entry level sector, values for those homes will inflate accordingly, making it harder for first home buyers to compete.

If you intend to buy in this category it would be a good idea to get moving before the rush! 

Rents certain to jump

Another roll-on effect of restricting negative gearing (and also increasing capital gains tax) is that rent rises will follow. Fewer investor properties will come to market as rentals. Competition for those rentals will increase and rents will keep escalating, making it harder for first home buyers to save for a deposit. This problem has been pointed out by many in the Real Estate industry but the government has ignored it. The government is set on helping with one hand and hindering with the other. In order to raise taxes.

Protect yourself by buying well!

The last thing people want is to buy a home that could lose value in the short term. The antidote is to buy extremely well and Buyer Marketing is your best bet. With our experience on your side you will buy quality, without overpaying. 

How we do it

We start by locating the best homes for you, which are often found off-market. We assess build quality and soundness of investment. We give you a more accurate valuation. Despite industry regulation, homes going to auction are often underquoted by agents by up to 10%. We also advise on which properties are most likely to appreciate more in value in the property cycles ahead. 

The Buyer Marketing path to success

Buyer Marketing guides you through every step of the process, protecting your interests at every point. We take the pressure off you by negotiating the purchase whether off market or by bidding at auction. It makes the process less stressful for you, and most importantly gets a better outcome for you, the buyer! 

Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing

Google Reviews

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Gail Lobo profile picture
Gail Lobo
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Peter's knowledge and expertise were invaluable when purchasing my first home. He guided me through every step and kept me informed regularly, which made the process easier and less stressful. I felt supported and in good hands throughout. Everything fell into place within a few weeks, quicker than expected! I would highly recommend Peter and his services.
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Charlotte St John
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Peter Fox is an outstanding buyer’s advocate. I am so glad that I hired him. It was incredibly helpful to have someone so experienced in real estate navigate the ins and outs of buying a home on my behalf. He achieved the result I was looking for in record speed, and took the stress out of everything. Thank you Peter.
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Colby Hart profile picture
Colby Hart
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Peter was a fantastic buyers advocate - identified and negotiated our dream home for us extremely quickly. Couldn't recommend higher.
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Beatrix Neville profile picture
Beatrix Neville
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I had an excellent experience working with Peter in purchasing my first home. Peter has a calm demeanour and is a clear communicator - never once did I feel stressed, pressured or uncertain of where I was in the journey or what the next steps would be. Peter understood me and my brief, selected quality properties to inspect and took me through off-market properties to compare. Within 3 weeks of contracting Peter we secured the perfect place. I am absolutely thrilled with my purchase, and believe I would have missed out on the property without Peter's rapport and expertise in communicating with Real Estate, and then guidance once the negotiation process started. Peter made the process of finding a property so fun and exciting that I was almost sad when it was over! Thanks Peter!
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Jean-Pierre Eid
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We engaged Peter Fox for bidding and negotiating, hands down one of the best decisions we ever made. He was clear and comforting ahead of auction and on the day witnessing Peter go to work was awe inspiring. Having done his due diligence beforehand, he was quick to assess a sizable field of interested parties and surgically execute a winning strategy securing for us our dream home. All that aside Peter was empathetic and understood our worries and motivations while also demonstrating strong discipline and an ethical approach throughout. Thank you Peter Fox
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Jessica Fagioli
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Peter is nothing short of a real estate king. I engaged Peter because I was looking at buying a specific house in a very competitive area, and which was being sold under a complex set of circumstances. Before even formally engaging him, Peter had gone to see the house in question, had spoken to the real estate agent, and had a good idea of what we were working with. From that moment on, I knew I was in safe hands. Peter was always available to alleviate any concerns and answer any questions, and when he wasn’t in a position to know the answers, he knew exactly how to get them in a prompt manner. Peter established a strong rapport with both the vendor’s solicitor (which ensured my lawyers and I were comfortable with the state of affairs before auction day) and the selling agent (which was critical to my ultimate success at auction). I cannot even begin to describe Peter’s mastery on auction day: there is no way I would’ve succeeded had he not been there. I cannot recommend Peter highly enough. Infinite thanks to you, Peter!
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patty goodman
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I purchased an investment property through Peter and he made the process so easy and stress free. I saved so much time being able to work while he inspected multiple property’s and negotiated a good deal for the right one. Highly recommend this bloke!
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Peter Mallen
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Peter Fox from Buyer Marketing helped us buy a property in Vermont South recently. We have been looking to downsize for some time and, honestly, are fairly fussy with our criteria. So when a house came along which ticked many of the boxes for us, we enlisted Peter's help to negotiate with the agent and to get the deal across the line. Peter was friendly, approachable and professional throughout. His knowledge and experience of the real estate market and the buying side in particular meant that we could leave the conversations and timing of offers to Peter. We were able to secure the property we wanted at a price that met our budget and met our criteria. So we are very grateful for Peter's advice, assistance and good communication throughout the process.
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Peter Villinger
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With Buyer Marketing’s Peter Fox I was in good hands from the beginning. An initial meeting with Peter set me on the path to a successful purchase of a property. This was an informal chat whereby he was able to understand precisely what my requirements were.From there the process was clear and efficient, Peter explaining not only what he would do but also how and why those were his strategies.Regular updates and the knowledge that he was up for a chat anytime was most reassuring. Peter V
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James Ireland profile picture
James Ireland
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Peter provided us with deep knowledge of the local areas, the real estate market and contacts within the industry that allowed us to quickly purchase a property that suited us perfectly. He gave us calm and thoughtful recommendations and was there for us at every step. He gave us insights we would not have otherwise known, and made the whole process simple. He conducted all the negotiations on our behalf and we came away with the perfect property at the right price. Could not recommend his services higher.

Buyers Agent Melbourne

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