October 2025 Newsletter
Carmela Dimasi
Posted on 03 Oct 2025
HEY NEIGHBOUR!
Footy season has wrapped up with a bang. A massive congratulations to the Brisbane Lions on their well-deserved AFL Grand Final victory. They roared their way to the top in a hard-fought clash that gave us everything — grit, goals, a nail-biting first half but sadly for Geelong, Brisbane was just too tough. Commiserations to the runners-up, but there’s always next season… hopefully Carlton will kiss and make up with Curnow and we still have players that want to play for us next year - at least we can all agree the pies were hot, if not Collingwood. There are Collingwood supporters and then there is the rest of the Melbourne footy fans.
The Melbourne property market is finding its own rhythm — not so much roaring, but humming along nicely. Prices are trending upward, clearance rates remain solid, and buyer sentiment is cautiously optimistic. It's not quite a Grand Final sprint, but it's far from a slow jog.
All eyes were on the RBA earlier this week but again they elected to keep the rates the same, (go figure) with whispers of potential interest rate cuts later this year. While nothing is locked in, even the speculation is starting to shift buyer confidence — and possibly borrowing capacity. It's a reminder that in real estate, timing and information are everything.
Whether you’re buying, selling, renting or simply watching from the sidelines, there’s plenty happening worth keeping an eye on. Enjoy this month’s round-up.
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.
Melbourne Market Snapshot: Steady Growth in August (metropole.com.au)
Melbourne’s property market continued its slow but sure climb in August, with dwelling values rising by +0.3 % over the month. Over the quarter, growth consolidated to ~1.0 %, and year‑on‑year prices are up ~1.4 %, marking the strongest 12‑month increase seen in the past year.
Key Points:
- Growth is moderate, pointing to a sustainable rebound rather than a rapid boom.
- Recovery is supported by strong demand and limited stock.
Commercial & Industrial Property Tax Reform in Victoria (sro.vic.gov.au)
From 1 July 2024, commercial and industrial properties in Victoria are transitioning from stamp duty to an annual tax (CIPT). Properties will enter via qualifying transactions and enjoy a 10-year transition, during which no CIPT is payable. Once in full CIPT regime (post-transition), typical rates are 1 % (0.5 % for “build-to-rent”) on unimproved value.
Key Points:
- Entry into the new regime is triggered under specific dutiable transactions; not all properties automatically convert.
- During the 10-year transition, no CIPT is charged; after this, CIPT applies alongside land tax (if applicable).
- A government transition loan is available to eligible buyers to ease the cost of entry transaction duty.
Rethinking the First Home Guarantee: Is Rent the Real Driver? (cotality.com.au)
With Melbourne rents soaring, the First Home Guarantee is being seen less as a fallback and more as a strategy to escape the rental cycle sooner.
Key Points:
- Rising rents can outweigh the cost of higher mortgage interest.
- The scheme helps buyers enter the market faster with a 5% deposit.
- Bigger challenges like housing supply and affordability remain unresolved.
Development Challenges in Melbourne’s Activity Centres (heraldsun.com.au)
Rising costs and weak pre-sales are making many planned apartment projects unviable.
Key Points:
- Construction and regulatory costs are rising.
- Pre-sales remain difficult, pressuring margins.
- Subsidy or planning relief may be required.
