The Victorian real estate market has seen a period of strong results across the last few months, traditionally at a time where conditions in Melbourne are quieter during winter. Last month Ray White Victoria and Tasmania achieved its strongest ever August results, transacting $980 million worth of property, an increase of 11 per cent in comparison to 2022. This was the result of more than 1,200 sales across Victoria.  

Much talk has been around the lack of listings on the market, particularly in Melbourne. Both July and August saw an increase in new listings compared to prior years, reversing the trend of fewer new listings coming to market since mid-2022. With strong results achieved throughout winter as average days on market reduce, many vendors chose to take advantage of these strong selling conditions and bring forward their property sale into the back half of August, giving the traditional strong spring selling season a jump start. 

With the Reserve Bank of Australia either nearing or at the end of their rate rising cycle for the time being, prospective buyers have increased confidence to put their best foot forward on auction day. This, combined with the increased listings on the market giving more choices to prospective purchasers, we continue to see significant activity across the Victorian real estate market. On the auction front, during August the Ray White group scheduled just shy of 800 auctions across Victoria, clearing 75.5 per cent of these. A clearance rate this high over such a large number of auctions continues to indicate the underlying strength of the market and deep pool of buyers. Purchasers are leaning towards high-quality property that they can immediately move into.  

Across the rental market we continue to see demand at levels higher than we have ever experienced. Strong migration and the return of international students have been key drivers of rental demand. Combining this increased demand with challenges in the construction industry as well as cost of living pressures, we are seeing more and more investors choosing to put their investment property on the market. While it is pleasing to see more first home buyers enter the market, Victoria urgently needs more housing stock to help address the critical shortage of quality rental properties available in the market.