Melbourne Winners & Losers by Property Type

The market never affects everybody equally. We have a new generation of buyers and retiring investors whose priorities aren’t always aligned.

If you’re considering transacting this year, find specific advice below based on your property type.

Apartments

Buyers: Look for properties that have sat on the market longer than expected. This often reflects an optimistic vendor rather than a problem with the property. Retiring investors are willing to discount.

Sellers: Lifestyle suburbs remain highly competitive, particularly for older-style apartments. Private sale can be advantageous, allowing first-home buyers to access available incentives and act quickly.

Villa Units & Townhouses

Buyers: One of the most competitive segments. Focus on properties where presentation or marketing has underperformed, be prepared to make a good first offer. Location and amenities matter.

Sellers: Demand remains strong from downsizers, families and professional couples prioritising lifestyle over land. Well-maintained/freshened up properties continue to outperform broader market conditions.

Family Homes

Buyers: Most auctions are passing in, don’t panic. Beware of main road properties that require significant work. Great chance to upgrade and benefit from a dip in the market if you have an asset to sell.

Sellers: Presentation, pricing and strategy matter more than ever. Buyers are still active, but they are taking longer to justify premium pricing. A well-priced private campaign outperforms auctions right now.

Luxury Homes

Buyers: Negotiation conditions remain better than they were during the peak years. Patient buyers are often finding opportunities that simply didn't exist a few years ago.

Sellers: Premium buyers still exist, but they're making highly selective decisions. Aspirational pricing without supporting demand will lead to months on market with no result.

Knock Down Sites & Renovation Projects

Buyers: This is one of the few segments where opportunities are appearing, but construction costs and feasibility concerns are limiting growth – difficult to justify without good capital access.

Sellers: The days of buyers paying a premium for future potential are fading. Feasibility and realistic expectations are critical – even then, a limited pool. Leasing may be the best short-medium term option.

The Truth

The reality is, this market is creating opportunities, but not for everyone. Timing, strategy and property type matter more than they have in years. 

If you’re considering buying, selling or simply wanting clarity on what your property is worth in today’s market, a short conversation could save you tens of thousands of dollars.

I’m happy to provide an obligation-free assessment of your specific property type, suburb and circumstances, including what vendors and buyers are doing right now, and the strategies producing the best results.

Before making any major property decision in 2026, call me for a confidential discussion about your options. You may be surprised at the opportunities available in the current market.