Word on the street: Market, Property Management and Project Updates for Q2 2026
As winter settled in, so too did the property market. Activity remains steady across Melbourne’s southeast, with buyers, sellers, rental providers and renters responding to changing conditions in thoughtful and measured ways. Here’s a look at what’s been shaping the market over the past three months.
Sales update
The market was still moving throughout the second quarter, but it definitely required more patience.
What’s happening now?
Momentum hasn’t disappeared, but the path to a successful sale is looking a little different. Buyers are taking more time to make decisions and vendors are entering the market with greater caution. It means that campaigns are increasingly extending beyond auction day or concluding through private negotiations.
Economic uncertainty and higher interest rates continue to influence buyer confidence, particularly at the upper end of the market. In contrast, more affordable price points are proving resilient, supported by stronger accessibility and ongoing demand from first-home buyers. Apartments are also performing steadily, with growing demand from interstate investors and purchasers looking for an alternative to renting.
The Federal Budget has shifted market sentiment. While many existing investors remain protected by grandfathered arrangements, uncertainty around future investment settings has prompted others to pause before making their next move. As a result, buyers are becoming more selective, placing greater emphasis on value and ongoing ownership costs.
Move-in-ready homes remain the strongest performers. Renovated houses, updated period homes and well-presented apartments continue to attract the most attention, as buyers look to avoid the cost and uncertainty of major building works.
What were the quarter’s standout sales?
Highlights included the sale of 2/202 Neerim Road, Carnegie, where three bidders completed strongly at auction. We also had 2A Claude Street, Bentleigh East, which achieved an excellent result before auction thanks to its unique standalone townhouse design.
Elsewhere, the apartment block at 1–5/42 Magnolia Street, St Kilda East demonstrated the continued strength of well-positioned investment opportunities, while 1/20 Grange Road, Toorak generated exceptional buyer engagement throughout its campaign before culminating in a closely contested auction.
Where to from here?
As winter progresses, we expect the lower stock levels to create fresh opportunities for both buyers and sellers. With fewer homes coming to market, quality properties should continue to attract strong interest, particularly when priced realistically and presented well.
One thing that never changes is that buyers act because of life circumstances, not seasons. People still relocate, upsize, downsize and invest regardless of whether it’s June or October.
Property management update
The rental market has remained resilient this quarter, with an environment that continues to reward patience over reaction.
What are the rental providers doing?
Many rental providers are taking a long-term view, choosing to retain quality investment properties rather than reacting to short-term market headlines. While the Federal Budget prompted plenty of discussion, the overall response has been measured, with most investors waiting for greater clarity before making big decisions.
In reality, ongoing state-based legislative changes continue to have a greater influence on day-to-day property ownership than the recent federal announcements. So, as regulations continue to evolve, preparation remains the key to staying ahead.
One area that’s becoming increasingly important is landlord protection insurance. Taking the time to review existing cover can help ensure owners remain protected against events, such as accidental damage or loss of rental income.
What are the renters doing?
Renters are moving less frequently, with many choosing to stay where they are unless a genuine lifestyle or work change requires them to relocate.
At the same time, a modest increase in available rental properties has eased some pressure on prices, creating a more sustainable environment across many of the suburbs we service.
Even with these shifts, well-maintained homes in desirable locations continue to lease successfully. Melbourne’s appeal remains strong, with professionals, students, families and interstate arrivals all contributing to consistent demand for quality rental accommodation.
Where to from here?
Looking ahead, we’re expecting stability to remain the defining theme of the months ahead. While further legislative changes are on the horizon – including the introduction of portable bonds – there’s no indication there will be any significant disruption to the broader market.
We’re also hopeful more refreshed investment properties will return to the market as owners complete upgrades and improvements. This will create greater choice for renters while helping maximise long-term returns for rental providers.
New projects update
Momentum continues to build across New Projects, with many exciting milestones bringing a number of standout projects closer to reality.
The big picture
Last quarter reinforced a trend we’ve been watching all year: buyers are taking a considered approach, but they’re still prepared to act when a project delivers on design and long-term liveability.
Construction is progressing across our portfolio, sales remain encouraging and buyers are gaining confidence as they see projects move from plans on paper to homes taking shape.
We’re also celebrating major milestones, with Olive Green now complete and Céline’s strong sales paving the way for construction to begin in the coming quarter.
Our project spotlight
The Parker is quickly establishing itself as one of the most exciting boutique developments in our portfolio. Positioned opposite Caulfield Park, this boutique collection of luxury residences has already achieved record-breaking sales, highlighting the demand for premium homes in blue-chip locations.
In St Kilda, Wellington Place has had an impressive start, with half of its boutique collection already secured. Construction is now underway, giving purchasers added confidence as the development transitions from vision to reality.
Meanwhile, Francesco in Bentleigh East is making excellent progress towards completion later this year. With five of its seven luxury townhouses already sold, the project is attracting buyers seeking a spacious, low-maintenance lifestyle within easy walking distance of Centre Road’s vibrant shopping and dining precinct.
Onwards and upwards
The months ahead promise even more progress as construction accelerates across the portfolio and more devleopments reach exciting new milestones.
For buyers, particularly downsizers, there’s genuine confidence in the market. We’re excited to see our communities continue to grow as these exceptional developments become places people are proud to call home.