The Melbourne property market has changed dramatically since the 2022 peak. War in the Middle East, Federal Budget changes to CGT and negative gearing, rising interest rates, cautious buyers, longer days on market and tighter borrowing conditions have created a tougher environment for homeowners and property investors looking to sell.
That is why this recent Richmond case study stood out.
At a time when many Melbourne property owners are worried about selling below their purchase price, our clients achieved a strong result, selling their Richmond home for more than they originally paid in one of the hottest markets in recent history.
Buying Property in Richmond at the Peak of the Market
Back in 2022, we secured a property in Richmond for our clients at $1,280,000.
The property was located at 13 Cutter Street, Richmond. The original plan was to knock down the existing home and build a new residence.
The market at the time was highly competitive. Melbourne buyers were paying premium prices across blue-chip suburbs including Richmond, Hawthorn, South Yarra, Brighton & Toorak.
A couple of years in, with rising building costs, our clients’ circumstances changed, and they decided not to proceed with their building plans.
Unfortunately, this meant we needed to resell the property in a very different Melbourne property market.
Melbourne Property Market Conditions in 2026
By March 2026, the market had shifted considerably.
Buyer confidence had softened. Interest rates had impacted borrowing power. Many Melbourne homeowners who purchased during the peak of 2021 and 2022 were facing the reality of selling into a slower market.
There was genuine concern that the property could sell below the original purchase price.
This is becoming more common across Melbourne real estate, particularly for properties that were purchased at the height of competition during the COVID property boom.
Off-Market Campaign Strategy in Richmond
Before launching publicly, we ran a two-week off-market campaign.
✅ Around 20 buyer groups inspected the property.
✅ No formal offers were received.
✅ Buyer feedback suggested the market was price-sensitive
✅ Many buyers remained cautious and selective.
This stage was important because it helped us gauge real buyer sentiment before moving into a full public campaign. We interviewed three local real estate agents for their feedback on the home and the market. One local agent said at best $1,200,000. I was worried, we then engaged and selected local Richmond selling agent Emily Sayers, and worked closely together on the next phase of the campaign. She was the same agent we bought the home from.
Public Campaign and Buyer Interest.
The property then moved to a five-week public Auction campaign with a quoted range of $1,150,000 to $1,250,000. The goal was to at least hit 1.250M.
✅ More than 60 buyer groups inspected the home. That’s a high volume in my opinion.
✅ Competition slowly improved.
✅ Buyer confidence built closer to auction day.
✅ The right buyer eventually emerged before the auction.
Despite softer conditions across the Melbourne property market, we successfully negotiated a pre-auction sale of $1,311,000. The home was bought by a younger couple renting in the area who will likely do a major renovation.
For our clients, this was a major relief. Not only did they avoid a loss, but they actually sold above their original purchase price from the peak market conditions of 2022.
Why This Richmond Property Still Performed Well
This property was not a standard Richmond home.
It offered features that remained highly desirable to Melbourne buyers, including:
✅ Large rear right-of-way access of Little Kent Street, Richmond.
✅ Northern rear orientation
✅ Free-standing with Future upside potential
✅ Strong Richmond location close to lifestyle amenities
✅ The land component continued to attract owner-occupier interest.
Even in slower markets, properties with strong fundamentals continue to have buyers.
This is an important reminder for Melbourne property buyers and sellers.
The market may slow, but buyers still compete for well-located homes with scarcity and long-term appeal.
What Melbourne Sellers Can Learn From This
1. Strategy matters more in slower markets
Selecting the right selling method, pricing strategy, and agent becomes even more important when buyer confidence drops.
2. Off-market campaigns can provide valuable feedback
Testing buyer interest before going public can help shape pricing expectations and campaign strategy.
3. Good properties still attract buyers
Even in uncertain conditions, buyers remain active for homes with strong fundamentals.
4. Realistic expectations are critical
The quoted range needed to reflect current market conditions, not just past peak pricing.
5. Strong negotiation still matters
The final result came from buyer management, positioning and timing, not simply listing the property online.
Final Thoughts on the Melbourne Property Market
There is still plenty of fear around the Melbourne property market right now.
Many homeowners who purchased in 2021 and 2022 are unsure what their property is worth today.
This Richmond case study shows that quality homes can still achieve strong outcomes with the right advice, campaign strategy and negotiation approach.
If you’re considering buying or selling property in Melbourne and want guidance around pricing, presentation, off-market opportunities or campaign strategy, feel free to reach out.
