As we step into 2026, market conditions in Melbourne are setting the stage for a year of meaningful activity. Based on current data and live market behaviour, here’s what we believe is coming:

1. Melbourne’s slow 2023–24 growth sets up a stronger 2026 rebound

Melbourne’s price growth over the past two years has lagged behind Sydney and Brisbane, with some segments flatlining altogether. That’s now created an environment where buyers see relative value, and vendors can benefit from pent-up demand. PropTrack and CoreLogic are forecasting 5–7% price growth across Greater Melbourne in 2026, with higher performance in quality segments.

2. Townhouses and villa units will lead demand in Melbourne’s inner ring

Within 10km of the CBD, both downsizers and first home buyers are moving fast and competing hard on villa units and townhouses priced between $850,000 and $1,200,000. In Boroondara, Darebin, and City of Yarra we’re seeing multiple offers within a week and sale prices exceeding quoted ranges – especially for well-renovated, low-maintenance homes that offer lifestyle, privacy and location.

3. Auctions lose ground to private sales – and that’s not a bad thing

Buyers’ inability to go unconditional at auction – especially first-home buyers using government schemes – is making private sales increasingly attractive. New reforms and laws are also making private sales more transparent and efficient for agents and buyers alike. In 2025, we saw multiple campaigns outperform auction-based competition in the same suburb, with faster results and less buyer hesitation. Expect more vendors to skip auction stress and lean into tailored, data-backed private sale strategies.

Want to know how this applies to your property? Let’s talk.