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Sensational Spring listings in full swing!
Over September’s first 2 weekends the Real Estate Institute of Victoria (REIV) recorded more than 1,616 auctions. 1,208 properties sold, 873 at auction, with 255 passed in. 335 properties were sold before auction with 0 properties selling after auction. The clearance rate averaged a strong 83%. 728 homes were bought by private sale, which is 237 more than this time last year.
September has brought a raft of new listings with exciting opportunities to secure that dream home. And it’s a great time to buy, with values set to rise going forward.
Stunning jump in home values
Although slow positive value growth is generally under way across Melbourne, some pockets got some extraordinary results over the June Quarter. Realestate.com claims Bulleen unit sale prices have rocketed 65.6%, citing PropTrack (PropTrack Market Trends September 2025) as their source. Sandringham houses apparently just delivered a value rise of 37.6%. Macleod houses went up 36.9 % and Fitzroy up 34.7%.
PropTrack is also saying areas as diverse as Albert Park (houses), Caulfield North (houses), West Footscray (houses) and Hughesdale (units) all recorded value gains of around 30%.
Where’s Hughesdale? It’s between Murrumbeena and Chadstone, with a $745k median unit value. It’s a good indicator of a typical established middle belt area.
This jump in unit values reflects entry level buyers empowered by lower interest rates, grabbing affordable homes. And to some degree, investors and downsizers. Three bedroom units are the hottest.
But Cotality isn’t so positive about growth in Bayside
On the other hand, expert analysts Cotality claim Bayside values have actually fallen by 3.4% in the past month, and fallen by 2.1% over the past three! It shows how 1. the experts can disagree over the figures, and 2. how neighbourhoods close to each other can still produce different results as some run hot. Generally though, the dust has to settle a bit before trends can be viewed as a clearer picture.
First Home Guarantee cap goes to $950k
The new price caps on the Federal Government First Home Guarantee start in two weeks. The Melbourne price cap goes from $800,000 up to $950,000, which will match the current Victorian First Homebuyer Fund cap. Qualifying buyers only need 5% deposit. It’s significant because the new settings will create more first home buyers, with much more to choose from.
With the higher cap 51% of all houses (across the national market) now qualify. as do 93% of units. Under the old caps only a third of homes qualified.
Investor loans bounce back
Investor loans in Victoria in the year to June were about 9% higher than the preceding 12 months, with owner occupier loans rising around 4% (PropTrack). Investor loans in the June quarter are at the highest level in three years.
The State government chased investors away with extra taxes over the last few years, which contributed to Melbourne’s stalling home values. Melbourne’s median home price, at $830,000, is now cheaper than Adelaide, Brisbane or Perth. Thanks a million Daniel! But figures continue to indicate the Melbourne market is recovering.
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Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing

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