HEY NEIGHBOUR!

September has arrived, spring is finally in the air, and if there is one month that reminds us why Melbourne really is Australia's sporting capital, this is it.

This September, football seems to be everywhere — and in almost every form imaginable.

Naturally, the AFL Finals dominate the conversation. Melbourne comes alive at this time of year and, as we head towards the Grand Final at the MCG later this month, footy fever will continue to build. Unfortunately for those of us who wear navy blue, Carlton's season is already over, so we'll be watching September from the sidelines and wondering what might have been.

But this year we have another kind of football taking over the city. Melbourne will make sporting history when the MCG hosts Australia's first regular-season NFL game, with the Los Angeles Rams taking on the San Francisco 49ers. The NFL hasn't simply arrived for one match either — Melbourne's sporting precinct is embracing American football and the enormous international following that comes with it.

Then there is the other football — soccer. With European competitions underway and the A-League preparing for another season, Melbourne's passion for the world game continues to grow. Whether you call it football, soccer, footy or American football, there really isn't another Australian city that embraces sport quite like Melbourne does.

And the calendar certainly doesn't stop in September. We move almost immediately into the Spring Racing Carnival, followed by cricket, basketball, golf and the Boxing Day Test — before Melbourne rolls into another Australian Open and Formula 1 season. It is an extraordinary sporting calendar and one of the things that makes Melbourne such a great city in which to live and work.

Of course, away from the sporting fields, there is plenty happening in property and politics as well.

In this month's edition, we look at the growing debate around Victoria's tax burden and what it means for property owners and investors, particularly as we move closer to November's State Election. We also take a closer look at Melbourne's rental market, where vacancy rates may have eased slightly but rents continue to climb — raising some important questions about rental supply, affordability and the future role of private investors.

We also examine the proposed changes to Victoria's auction laws and the REIV's call for the Government to pause and reconsider reforms that would require vendors to disclose their reserve price seven days before auction. Transparency is important, but legislation also needs to recognise how an auction campaign actually works in the real world.

So, plenty happening this September — spring has arrived, Melbourne is buzzing, and we have politics, property and more football than we know what to do with.

And as for Carlton… there's always next year! After a season of enormous change, attention now turns to what happens next and whether the Blues can turn the promise we saw at different stages this year into something much bigger in 2027.

As every Carlton supporter knows, hope springs eternal.

Warm regards,

Carmela

MARKET INSIGHTS

We strive to stay up to date on the latest market trends. Here are a few articles we think are worth reading.

Auction Reserve Price Law Is Now Official — What Vendors Need to Know Before October (legislation.vic.gov.au)

What had been months of uncertainty for Victorian vendors is now settled: the Consumer Legislation Amendment Bill 2026 received Royal Assent on 8 September 2026, becoming the Consumer Legislation Amendment Act 2026 — Act No. 36 of 2026.

The REIV's push to have the reforms paused for further consultation did not succeed. The Bill passed both Houses, with Government and Australian Greens amendments carried in the Legislative Council on 14 August, and the Legislative Assembly formally agreeing to those changes on 26 August.

For vendors preparing a spring campaign, this is no longer a “watch this space” issue. Most of the property sales and underquoting changes commence on 1 October 2026, with the new reserve-price requirements applying to auctions and fixed-date sales held on or after 16 October 2026.

Under the new requirements, agents must obtain the seller's reserve price in writing and publish it at least seven days before an auction or fixed-date sale. Advertising and marketing materials, including the new Property Price Statement, must also be updated to reflect the reserve price. If the reserve has not been published for the required period, the auction or fixed-date sale cannot proceed.

Once a sale becomes unconditional, the sold price must be added to the Property Price Statement within seven days. The updated statement must then remain publicly available for at least 18 months, unless an approved exemption applies.

A separate and later set of changes is also confirmed. From 1 June 2027, Section 32 vendor statements must be made available earlier, including at least 14 days before an auction or fixed-date sale. From 1 July 2027, agents will also be prohibited from taking their commission from a deposit released before settlement.

The concern raised by the REIV throughout the debate has not disappeared now that the Bill has passed. A reserve price is typically informed by weeks of buyer feedback and market activity and may shift during the final days of a campaign. The new seven-day publication requirement means vendors and agents will need to consider their pricing decisions carefully and earlier in the campaign.

Key Takeaways:

• The Bill is now law — Royal Assent was given on 8 September 2026, making it Act No. 36 of 2026.

• The reserve price must be published at least seven days before auction — the requirement applies to auctions and fixed-date sales held on or after 16 October 2026.

• Later changes have separate commencement dates — Section 32 requirements start on 1 June 2027, while the commission restriction starts on 1 July 2027.

Read More and References

• Consumer Affairs Victoria — New Property Sales and Underquoting Laws — practical requirements and commencement dates

• Consumer Legislation Amendment Act 2026 — authorised version of Act No. 36 of 2026

• Victorian Legislation — Bill History — parliamentary passage and Royal Assent record

• REIV — Sale of Land Act 1962 — industry information and advocacy

• LPLC — Victorian Conveyancing Reform — provision reference and commencement information

Victoria's Tax Question – How Much More Can Property Take? (heraldsun.com.au)

With Victoria heading towards the 28 November State Election, taxation, housing and the cost of living are rapidly becoming some of the biggest battlegrounds of the campaign.

New Premier Ben Carroll inherited a state facing significant debt, a housing affordability problem and a property industry that has already absorbed numerous tax and regulatory changes. Now, reports that the Government has commissioned more than $600,000 worth of consultancy work examining alternative property taxes and charges to fund infrastructure in new housing estates have understandably attracted attention.

The Government insists it has no plans to introduce new property taxes, while the Opposition argues Victorians deserve to know exactly what is being considered before they vote. The debate comes at a time when Victorian households are already carrying the highest state and local tax burden per person in Australia, according to ABS figures cited in recent reporting.

This matters enormously to the property market.

Property owners and investors don't make decisions in isolation. Land tax, stamp duty, compliance costs, interest rates and changes to investment taxation all influence whether somebody buys, sells or continues holding an investment property. Eventually, policies affecting investors can also affect renters if they contribute to a reduction in privately owned rental housing.

There is also a broader question for the Government: can we solve a housing shortage by continuing to increase the financial burden associated with owning and developing housing?

Premier Carroll has indicated his Government wants to return its focus to the basics — health, education, cost of living and community safety — ahead of November. For the property industry, we would add housing supply and investment confidence firmly to that list.

Key Takeaways:

• Tax will be a major election issue – Victoria's tax burden and the state's financial position are shaping up as key points of difference between Labor and the Opposition.

• Further property taxes are being ruled out by the Government – but consultancy work examining alternative ways of funding infrastructure has reignited debate about how much of the burden should fall on property.

• Investor confidence matters to renters too – discouraging private residential investment can have consequences for rental supply at precisely the time Melbourne needs more homes.

Read more: The latest reporting on Victoria's property-tax debate and the Government's response is available through the Herald Sun.

Claremont Financial x The Neighbourhood (claremontfinancial.com.au)

The Reserve Bank of Australia (RBA) held the cash rate steady at 4.35% at its meeting on 11 August, the second hold in a row after three back-to-back rises earlier in the year. The next decision is due on 28 and 29 September. Headline inflation has eased to 3.8%, which takes a bit of pressure off borrowers, but underlying inflation is proving stickier. The Bank is staying cautious and has left the door open to another rise if the numbers push that way.

Melbourne’s property values have continued to soften, yet the rental market remains firmly in landlords’ favour, with vacancies tight and rents still climbing. For well-positioned investors, weaker values alongside strong rents are quietly lifting yields.

Key Takeaways:

• Rates on hold, but the RBA is watchful: The cash rate stayed at 4.35% in August. Headline inflation is down to 3.8%, though underlying inflation is still above the target band, so the Bank isn’t ruling out a further move. The next decision comes in late September.

• Melbourne softens, buyers get room to move: Dwelling values eased around 1.2% in July and are down roughly 3.4% over the quarter, leaving the market about 5.5% below its previous peak. More stock on the market and cautious sentiment mean buyers are negotiating harder, with auction clearance rates sitting in the high 50s.

• Rentals stay tight, yields improve: Melbourne’s vacancy rate remains low at around 1.6%, and rents are up close to 5% over the year. With values easing and rents rising, gross yields have pushed to about 4%, the highest of the major capitals, giving investors good reason to review their position.

Free Valuations for Owners

The Federal Government’s capital gains tax changes are now law. From 1 July 2027, any property you hold is treated as sold and repurchased at its market value on 30 June 2027, which resets your cost base. Gains up to that date retain the current 50% CGT discount. To use your property’s real value, you will need a proper valuation. Otherwise, the ATO will apply a default formula that could result in you paying more CGT than necessary.

Claremont Financial is offering free valuations for all owners. If you would like an updated property valuation completed by a sworn valuer, reach out and the team will organise it at no cost to you.

Melbourne Rents Continue to Climb – And the Pressure Isn't Over Yet

There is an interesting story emerging from Melbourne's rental market.

On the surface, conditions appear to be improving slightly for renters. The REIV's latest metropolitan Melbourne vacancy rate was 2.6% in July, meaning there are more properties available than during the extreme rental shortages experienced in recent years. (reiv.com.au)

But here's the problem: rents are still rising.

The median Melbourne house rent has reached a record $600 per week, while REIV data shows both Melbourne house and unit rents at around $600 per week in July. House rents were up 3.4% over the year, while unit rents increased 4.3%. (reiv.com.au)

Other measures show even stronger growth. SQM Research's latest asking-rent data has Melbourne houses at approximately $822 per week and units at around $603, with combined asking rents roughly 6.1% higher than a year ago. Different datasets measure the market differently, but the direction is very clear: renting in Melbourne continues to become more expensive. (sqmresearch.com.au)

Perhaps the most striking way to look at it is annually. A renter paying $600 per week is spending $31,200 every year on rent — before electricity, gas, groceries, transport and every other household expense are considered. PropTrack data shows rents have increased by at least $1,000 a year across a significant number of Melbourne suburbs. (realestate.com.au)

For rental providers, the figures demonstrate that demand remains healthy. But there is a balance that needs to be maintained.

We have always believed that a good renter who looks after a property and wants to stay is extremely valuable. Maximising rent at every opportunity isn't necessarily the same thing as maximising the long-term return on an investment. Vacancy, advertising, leasing costs and unnecessary renter turnover all have a cost.

The bigger concern is what happens next. Melbourne needs substantially more housing, yet the development pipeline remains constrained in parts of the market. Inner Melbourne apartment rents, for example, increased around 5% over the year to June, with limited future development expected to keep vacancy below its longer-term average. (upaustralia.com.au)

If rental supply doesn't keep pace with population and household growth, today's $600 median may unfortunately not remain $600 for very long.

Key Takeaways:

• Melbourne's median rent has reached around $600 per week, equivalent to $31,200 a year.

• Vacancy has improved, but rents are still rising — demonstrating that Melbourne's rental supply-and-demand imbalance hasn't disappeared.

• Keeping good renters remains important — rental providers should consider the total return from a stable tenancy, not simply the highest possible weekly rent.