September 2025 Newsletter
HEY NEIGHBOUR!
Here’s our take on what’s been happening in the last month
Earlier this week, The Reserve Bank of Australia (RBA) has once again opted to keep interest rates on hold, citing lingering inflationary pressures in the services sector, cautious wage growth, and broader global economic uncertainty. While headline inflation has eased slightly, it remains above their target range of 2–3%, and the RBA maintains that tight monetary policy is necessary to bring it under control.
However, from where we sit, it’s difficult to ignore the toll this is taking on everyday Australians — particularly mortgage holders — who feel the squeeze more than ever. While the official line is focused on economic prudence, it increasingly feels as though these policies are doing more to protect bank profits than ease the cost-of-living crisis. Many households are simply struggling to keep up with monthly repayments, with little real relief in sight.
As we close out the financial year, it’s a good time to reflect on the state of the rental market. Over the past 12 months, rents have remained high across Melbourne but have largely stabilised in recent months. Despite the broader economic challenges, we’ve seen strong rental demand continue. At The Neighbourhood Property Collective, we’re proud to report exceptionally low vacancy rates — rarely more than 2 to 6 properties vacant at any one time over the past six months. It’s a testament to our proactive leasing strategies, thorough renter selection, and hands-on property management. Generally this next quarter always seems to slow down a little, renters are usually settled in their homes, less overseas students arriving so less demand until things ramp up again after September.
Beyond the property landscape, the past month has also seen several deeply unsettling stories dominate headlines. The verdict in the Morwell mushroom deaths case has finally brought some closure to a tragic and bizarre chapter, but even more disturbing is the shocking revelation surrounding a childcare worker found guilty of harming dozens of vulnerable children in his care — a case that has left many parents and communities shaken. These events serve as a stark reminder of the importance of vigilance, accountability, and trust in the systems we rely on every day.
As we move into the second half of the year, we wish you warmth, resilience, and continued success — both personally and professionally. We look forward to supporting you through whatever the next season may bring.
Stay warm and take care,
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.
Big Changes Are Coming for Victoria’s Rental Providers (propertyupdate.com.au)
Victoria will introduce sweeping rental reforms from late 2025 under the Housing Statement Reform Bill.
- No-fault evictions banned – providers must have a valid reason.
- Notice periods extended – 90 days for rent increases/terminations.
- No rental bidding – fixed advertised prices only.
- Minimum standards upfront – safety compliance checks etc. before listing.
House Values Bloom as Spring Selling Season Heats Up (cotality.com)
Australia’s housing market is showing renewed strength as the spring selling season begins to pack a punch:
- Strongest Monthly Growth Since May 2024: Cotality’s Home Value Index rose 0.7% in August, pushing annual growth up to 4.1%—the second consecutive month of annual gains.
- Supply Under Pressure: Advertised listings remain around 20% below average for this time of year, while auction clearance rates hit 70%, the highest since early 2024. This supply–demand imbalance is putting upward pressure on prices.
- Broad‑Based Value Growth Across Regions: Price increases were widespread—with Brisbane (+1.2%), Perth (+1.1%), Adelaide (+0.9%), and Darwin (+1.0%) leading the gains in August.
- Sellers in Strong Position: With low competition and steady price growth, vendors enter spring firmly ahead. Buyers may benefit as new listings trickle in, but affordability constraints and cautious borrowers may temper the pace going forward.
Buyer Optimism Hits 2-Year High (realestate.com.au)
- NAB’s property index hits +44 – highest since 2023.
- First-home buyers now represent 40% of all purchases.
- Market confidence driven by lower rates and limited stock.
First Home Guarantee Expands – Just 5% Deposit Needed (realestate.com.au)
- New rules start 1 October: only 5% deposit required.
- No LMI for eligible first-home buyers.
- Could save buyers $120k+ on upfront costs.
