First Home Buyers In Melbourne Need To Understand This.
Recent data shows a clear trend: first home buyer incentives are pulling more buyers into the lower end of the market, increasing competition in a segment that already had limited supply.
That matters, because while broader sentiment suggests things have cooled, the reality is more nuanced. Demand hasn’t disappeared – it’s just being concentrated (see last weeks email about median price ‘myths’).
In Melbourne, that’s showing up clearly across the $600k–$900k range, particularly in suburbs 7-10km from the CBD where entry-level properties continue to attract consistent competition.
Right now, there aren’t necessarily less buyers, it’s just that the active ones are all looking for the same thing, and it’s why we’re seeing a two-speed market operating at the same time.
For buyers, this changes the equation. Waiting for “less competition” at the lower end may not deliver the opportunity many expect.
For vendors, it reinforces something important. If your property sits within that bracket, demand is still active, but it needs to be captured correctly. Competition doesn’t convert itself into a result without the right positioning.
And for those outside that range, it’s a reminder that not all data applies equally. Strength (or weakness) in one segment doesn’t automatically translate across the market.
The mistake most people make is assuming the market moves as one. The best agents understand this, and advise on specifics relating to your home, not by looking at the headline figures.