Melbourne Property Pulse 11 August 2026
There’s plenty happening across the Melbourne property market as we head towards spring. Interest rates remain front and centre, auction results are showing a market that remains selective, and some significant legislative changes could reshape the way property is bought and sold in Victoria.
Here’s what I’m watching.
Rates held at 4.35%. Have we finally reached the peak?
The RBA announced on 11 August that interest rates have held the cash rate at 4.35%
The interesting thing is that expectations have shifted. The RBA has raised rates three times in 2026, but the majority view is now that we may be at the peak. In a recent Reuters poll, 27 of 36 economists expected the cash rate to remain unchanged through the end of 2026.
Westpac had been the notable hawk, previously forecasting further increases, including a September rise. Today's hold means thinking cautiously about repeating older forecasts without seeing whether Westpac formally revises its call following today's RBA decision. The RBA meet three more times in 2026. Below are the thoughts of economists (remembering no one has a crystal ball):
29 September 2026:
Hold is the majority view, although another hike remains possible.
3 November 2026:
Hold currently looks more likely than a hike, but it will depend heavily on inflation and employment data between now and then. The November meeting is particularly important because the RBA will also release its quarterly Statement on Monetary Policy, including updated inflation and economic forecasts.
8 December 2026
Too early to confidently call. By December, the RBA will have the benefit of another round of inflation, employment and economic data. If inflation continues to ease, a hold may be possible, however another hike remains firmly on the table if inflationary pressures re-emerge.
There is still disagreement among economists. CommBank expects 4.35% to be the peak and rates to remain there for the rest of 2026, with cuts not expected until 2027.
The Governor’s press conference follows at 3:30 pm after each decision.
What Agents Are Telling Me
One theme keeps coming up in my conversations with agents: everyone is a little on edge.
Vendors are trying to understand where their property sits in the current market and still have ideas that their property is worth what it was 6 months ago. Buyers are cautious about overpaying, waiting for a perceived ‘bottom of the market’ (hint: we only know when we’ve hit the bottom once we’ve passed it) and conscious of borrowing costs.
Agents are working hard to bring the two together, leaning into new strategies.
While there was more than usual stock during the usually quieter winter period, good stock is lower than usual. Good properties are still attracting competition, but buyers are increasingly discerning. Price, presentation and realistic vendor expectations matter.
In Northcote, White Fox Real Estate have secured a new office in Hight St, increasing competition for local agents in an already competitive market.
Melbourne Auctions
Melbourne recorded a 63% auction clearance rate for the week ending 8 August, across 627 scheduled auctions.
That follows a 55% clearance rate the previous week, when 567 auctions were scheduled.
The week to week movement is a good reminder that headline clearance rates don't tell the whole story. Individual suburbs, property quality and vendor expectations can produce very different outcomes.
Self Managed Superannuation Funds & Property: One to Watch
A significant change to SMSF property investment came into effect on 10 August 2026. SMSFs can no longer enter into new Limited Recourse Borrowing Arrangements (LRBAs) to purchase residential property. Existing arrangements are grandfathered, and SMSFs may still purchase residential property without borrowing.
The word from agents is that they were extremely busy with SMSF residential investment purchases leading up to the deadline. Some buyers agents were so busy they were outsourcing work to keep up with demand. It will be interesting to see whether that rush is reflected in August sales figures, and whether we now see some softening in this segment of the investment market.
Big Changes Proposed for Victorian Property Sales
Victorian buyers and agents should also keep an eye on the Consumer Legislation Amendment Bill 2026.
Among the proposed changes are requirements for:
· A vendor's reserve price to be published at least seven days before an auction or fixed date sale
· Section 32 statements to be available 14 days before an auction or fixed date sale
· Greater information about comparable properties
· Sold prices to be published after a sale becomes unconditional
· More prominent property price information in advertising
· Proposed repealing the existing Section 27 early release of deposit process, preventing agents from taking their commission from a deposit released before settlement.
If passed and implemented as proposed, these are significant changes that could give buyers more transparency around pricing. The REIV is concerned about potential change to the dynamics of Victorian auctions and has been lobbying government to understand the impacts.
Buyer Behaviour: Assertive or Just Rude?
One thing I’m finding really interesting since becoming a buyer’s advocate is watching buyer behaviour.
Buying property is stressful. I get it. But sometimes what a buyer believes is being assertive can actually come across as aggressive or rude.
And that can matter.
If an agent has two buyers with similar offers and similar terms, who do you think they'd rather deal with?
I recently saw a pretty confronting example of this when a potential buyer of a neighbouring property aggressively questioned our building works, demanded documentation, contacted our architect and builder directly and challenged their work and compliance in a way that caused unnecessary stress for everyone involved.
Ironically, he wasn't the successful bidder.
The lesson?
Ask questions. Do your due diligence. Negotiate hard. Absolutely. But you can do all of those things while treating people with respect.
Remember, you're not just buying a property. You're potentially buying into a community.
And if you're not confident navigating the purchasing process, that's okay. Find a professional who is.
Emma’s Top Tips for Buyers:
· Do your tax return
· Get your pre-approval from your broker and keep it current. This will serve you if interest rates hike in September. Your borrowing power may put you ahead of the competition in the market.
· Review the most recent comparable sales available. In a moving market, a sale from 3 or 6 months ago may be far less relevant than one from the past few weeks and recent months.
· More properties are going off market. Ask your local agent to put you on their email list, portal or Instagram group.
· Call your bank and tell them you’ve secured a better deal elsewhere (make sure you give a real rate that is published) and see what they do to sharpen their pencil (See script below)
Final Thought
The current market isn't necessarily a market to fear. It's a market to understand and to find opportunity.
For buyers, preparation, good due diligence, realistic property assessment and a clear negotiation strategy can make all the difference.
Because finding the right property is one thing. Finding where you belong is what it's really about.
Bank Script To Secure Lower Rate
You:
Hello, my account number is [XXXXX] I’ve been with you for [XX] years. I’ve applied to refinance with [Bank Name]. Their rate is [XX] %, which is a full [XX] % cheaper than you’re charging me. I’d like you to match, or better the offer or send me the discharge forms I need to switch to [Bank Name].
Bank rep:
One moment, please.
(You’re bluffing, of course. However, the bank’s retention sales team have strict targets, backed by incentives, that they have to meet one of which is giving profitable customers discounts to stop them leaving.)
Bank rep:
We can’t match the rate you have quoted. However, we understand you are a valuable customer, so we would like to offer you a 0.15% discount.
You:
That’s not good enough. I’ve already got conditional approval. In order to stay I need at least a 0.5% discount. Could you please seek approval from your manager? I’m happy to wait.
Bank rep (a full 15 minutes later):
On reviewing your case, we can offer you that 0.5% discount on your current rate.
You:
Brilliant! Please send me an email confirming the new rate and confirming that it will be applied as of start of business tomorrow. You have been so helpful, I really appreciate your efforts today.
Sources:
Reserve Bank of Australia – August Monetary Policy Decision
Domain – Melbourne Auction Results
Parliament of Victoria – Consumer Legislation Amendment Bill 2026
Australian Treasury – 2026–27 Tax Changes
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.