Melbourne & Australian Property Market: Spring Selling Season Kicks Off with a Bang

The Australian property market has roared into the spring selling season, with the weekend of September 6th, 2025, delivering strong auction results across the major capital cities. The national clearance rate surged to an impressive 74.4%, a significant jump from the previous week and the same time last year, signalling robust buyer confidence and a market poised for continued growth. Melbourne, in particular, is showing signs of a powerful resurgence, with a solid 74.4% clearance rate and a median house price holding firm above the $1 million mark.

This comprehensive analysis delves into the latest auction data from CoreLogic, realestate.com.au, and Proptrack, supplemented by expert commentary from the Real Estate Institute of Victoria (REIV) and leading property analysts. We explore the key trends, notable sales, and economic factors shaping the market, providing data-backed insights and forecasts for buyers, sellers, and investors, with a special focus on Melbourne’s thriving eastern suburbs.

The Australian property market has kicked off the spring selling season with significant momentum. The national preliminary auction clearance rate for the week ending September 6th, 2025, stood at a robust 74.4%. This represents a considerable increase from the 69.9% recorded the previous week and is well ahead of the 58.8% from the same week last year, according to data from Property Update [1]. This strong performance, amidst a rising volume of auctions, indicates a market with deep buyer demand and firming vendor confidence.

Across the capital cities, the results were largely positive, with Sydney leading the charge. Sydney continues to be the standout performer, with a clearance rate of 79.7% from 966 auctions. This is a testament to the sustained demand in the Harbour City, even as more properties come onto the market. Adelaide also posted a strong result, with a 78.5% clearance rate, demonstrating the continued strength of its market. Brisbane’s clearance rate of 66.3% is a significant improvement from the previous week, suggesting a positive shift in the Queensland capital.

Melbourne’s property market is showing clear signs of a spring resurgence. With 1,076 homes going under the hammer, it was the busiest auction market in the country. The city recorded a solid 74.4% clearance rate, which, while slightly down from the previous week’s 75.3%, is a significant improvement on the 66.9% recorded this time last year. This demonstrates a market that is absorbing a higher volume of listings while maintaining a strong level of buyer competition.

The median house price for houses sold at auction in Melbourne was $1,106,000. While this is a slight dip from the previous week’s $1,130,000, it represents a substantial 10.6% increase from the $1,000,000 median recorded in the same week last year. This highlights the significant capital growth Melbourne has experienced over the past 12 months.

For those with an eye on Melbourne’s eastern suburbs, the results are particularly encouraging. The Outer East region was a standout performer, recording an impressive 84.5% clearance rate from 116 auctions, with a median price of $1,270,000. The Inner East also performed strongly, with a 73.2% clearance rate from 142 auctions and a median price of $1,525,000, reinforcing its status as a premium market.

These results underscore the robust demand in Melbourne’s eastern suburbs, making it a prime area for both sellers and property management investors. The combination of strong clearance rates and rising median prices points to a market with excellent long-term growth prospects.

The strong start to the spring selling season has not gone unnoticed by property market experts. There is a palpable sense of optimism, with many commentators pointing to a confluence of factors driving the current market momentum.

According to analysis from Domain, the current market conditions are setting the stage for a “supercharged spring selling season” This is being driven by a combination of recent cash rate cuts, which have boosted buyer confidence and spending power.

As Dr. Nicola Powell, Chief of Research and Economics at Domain, notes:

“Spring is the season that sets the tone for the year’s close. It delivers more choice for buyers, greater activity for sellers, and firmer price growth. But with more listings comes more competition, so strategy and presentation matter more than ever.”

This sentiment is echoed by buyer’s advocate Cate Bakos, who has observed a significant shift in buyer sentiment on the ground in Melbourne. She notes that the August interest rate cut, in particular, “altered sentiment completely”

The renewed market enthusiasm has brought with it a familiar phenomenon: the fear of missing out (FOMO). Bakos notes that the August rate cut “amplified the already-existing sense of FOMO, with many buyers fearing a surge in prices” This is leading to increased competition at auctions, with prices often soaring past expectations.

This heightened sense of urgency is being exacerbated by lower-than-average listing volumes. While more properties are coming onto the market for spring, demand is still outstripping supply in many areas, particularly in the more affordable segments of the market.

Another key trend shaping the current market is the resurgence of investor activity. Cate Bakos reports a dramatic increase in enquiry from interstate investors since the beginning of the year, with investors now making up more than half of her clients This is the highest level of investor activity she has seen since 2021.

This influx of investors is adding to the competition, particularly in Melbourne’s entry-level and outer-ring house markets, where they are often competing directly with first homebuyers.

The current market strength is underpinned by a number of key economic factors. Strong population growth, tight rental markets, and elevated construction costs are all contributing to the supply-demand imbalance that is driving prices higher.

Looking ahead, the outlook for the property market remains positive. Westpac is forecasting strong price growth to continue into 2026. For Melbourne, they are predicting a solid 10% growth in 2026, which would push the median house price above the $1.05 million mark

These forecasts are based on the expectation that the current market dynamics will continue, with strong buyer demand and a limited supply of properties for sale. The introduction of new first-home buyer incentives is also expected to add further fuel to the market, with an estimated 70,000 new first-home buyers expected to enter the market over the next 12 months.

So, what does all this mean for those looking to buy, sell, or invest in the Melbourne property market, particularly in the eastern suburbs?

The market is competitive, so it’s crucial to be well-prepared. Get your finances in order, be ready to act quickly, and consider looking at a wider range of suburbs to find opportunities. The strong performance of the Outer East suggests that there is still value to be found in this region.

With strong buyer demand and rising prices, it’s an excellent time to be selling. However, with more properties coming onto the market, presentation and pricing are critical. A well-presented property in a desirable location is likely to attract significant interest and achieve a premium price.

The current market offers excellent opportunities for capital growth. The strong rental market and the potential for continued price growth make Melbourne’s eastern suburbs a prime location for investment. As Michael Yardney, founder of Metropole Property Strategists, advises, the key is to focus on “well-located, investment-grade properties that deliver long-term growth”