House hunters are being urged to “lowball” vendors as tax concerns, rising interest rates and winter nerves plunge the property market into a state of fear.
It’s grim news for the 779 Melbourne home sellers PropTrack figures show are scheduled to test the auction market this week, down 17 per cent from the same time last year.
Industry Insider Property Advocates director Andrew Date said Melbourne buyers had been pushed into a holding pattern by a string of government-driven policy changes.
“I think what’s driving the lack of confidence right now is really government-driven policy change,” Mr Date said.
“You’ve got negative gearing, capital gains tax, and, more recently, what happened with residential property in self-managed super funds. “You combine that with three rate hikes in 2026, the war and inflation. They’re the big things in the room that are putting buyers into a state of fear and into a holding pattern.”
Next week, Melbourne’s auction volumes are expected to fall further to 597, down 23 per cent from the same time last year, while Sydney is expected to have 647 auctions, down 13 per cent.
Mr Date said homes were still selling, but only when vendors were willing to meet market conditions.
“When you go deeper, there are still properties selling, but it is very, very price sensitive,” he said.
“If you’re not willing to let the property go at market value, and you don’t have enough buyers, then you’re better off not selling.
“You’re better off waiting until confidence returns.”
Mr Date said his advice to buyers was to find out how long a property had been on the market, understand how motivated the vendor was and be prepared to push hard.
“In this market, I’d be lowballing,” he said.
“This is the market where buyers need to know the history, know the motivation and be prepared to push hard.”
He said the downturn had also created an opening for cashed-up families looking to upgrade.
“For buyers who are sitting on a home worth $2m, $3m or $4m, if they have a lot of equity and the banks will let them borrow, I’d be telling them to sell and then go and buy a $6m, $7m or $8m property,” Mr Date said.
“Those properties higher up the price point have come back significantly more than properties at the lower end.
“That is where the opportunity is.”
Read my fully interview on why Melbourne buyers are gaining the upper hand in today’s market.
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