Defense · Report Line
An Albanese government decision in May appears to have left Victorians going to auction this spring worse off than they were. Grim new data has revealed a growing share of Melbourne home sellers are letting their home go at auction for less than their reserve price. The share of sellers getting their reserve price at auction has plunged to its lowest level since at least 2023, with just 47 per cent of sellers getting more than they’d hoped for at the start of spring this year according to Ray White auction data.
It also means 53 per cent are getting less than they had hoped — or not selling. With the figure below the low 50 per cent clearance rate Melbourne has notched over the past few weeks, it suggests a sizeable portion of sellers are letting homes go for less than their reserve. RELATED: Vic homeowners facing $167bn wipeout Expert guide to navigate Victoria’s unpredictable spring market Vic Premier Ben Carroll enacts new Vic landlord’s law with $26k sting It’s challenging news for home sellers, with 717 of them testing the market this week — far below the almost 1200 that occurred in the same week in 2025, according to REA Group data.
By contrast, the share of owners selling above their reserve was closer to 55 per cent in April, before the Albanese government announced massive changes to property investor tax benefits in May. Go back to 2023, and even after 12 almost consecutive interest rate hikes more than 60 per cent of sellers were selling above their reserve price. Ray White chief economist Nerida Conisbee says investors have pulled back from the market following changes to property investment tax rules.
The firm’s chief economist Nerida Conisbee said given the stronger performance in 2023, it seemed likely that the Albanese government’s tax changes had led to lowered demand from investors and forced sellers to accept less. “It’s definitely causing a shift in the way people are looking at property at the moment,” Ms Conisbee said. “There’s just fewer people wanting to buy.
With such weak demand, people are watching and waiting for things to show a spark of life.” Real Estate Institute of Victoria chief executive Toby Balazs said the data suggested the number of sellers meeting the market was rising. REIV chief executive believes sellers tiday are facing a reality on prices that few in the past had been required to. “And they are understanding that they might not achieve their reserve price as reflected in these numbers,” Mr Balazs said.
“That shows that this is a challenging market on many fronts, including not only getting a property sold, but in reaching the reserve price.” Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox. MORE: $3.5m Phillip Island Block house behind shock quit returns Ex-Premier Ted Baillieu sells $8m+ Hawthorn home ‘We’re done’: Block house resurfaces after chaos
Source: realestate.com.au
