January 2026 Newsletter
HEY NEIGHBOUR!
It’s hard to believe we’re already 15 days into 2026. The year has arrived carrying a mix of emotions — moments that have deeply unsettled us, alongside the familiar sense that life continues to move quickly forward.
Like many Australians, we were shaken by the tragic events in Bondi. At the same time, our vast country is facing challenges on multiple fronts — up north, communities are grappling with floods and cyclones, while here in the south, bushfires are once again devastating towns and families.
For those who have lost homes, livelihoods, and a sense of normality, the road ahead will be long. While government assistance has been announced, the reality is that a $1,000 payment barely scratches the surface — it wouldn’t even cover basic essentials for people forced to start again from nothing.
Add to this the erratic and extreme weather we’re experiencing, and it’s clear that uncertainty, in many forms, continues to shape the world around us.
And yet, amid it all, there is resilience. Communities rally, neighbours look out for one another, and people find ways to rebuild — step by step. It’s a powerful reminder of the strength that comes from connection, care, and shared responsibility.
As we move further into the year, our focus remains on providing stability, clarity, and genuine support for our clients. In times like these, trusted guidance and steady hands matter more than ever.
Thank you for being part of our community. Here’s hoping for a calmer, kinder, and more settled year ahead.
Warmest wishes,
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.
The property market has started 2026 strongly, supported by stable interest rates and rising property values.
Key Highlights:
Interest rates: The RBA has held the cash rate at 3.60%. Rates are stable for now, but increases remain possible later in 2026 if inflation persists.
Melbourne property market: Melbourne prices continue to rise. Median house values sit around $960,000–$985,000. Unit prices are also strengthening due to limited supply.
Investor activity: Investor lending in Victoria remains strong. Competitive loan offerings and higher rental yields are driving demand.
Supply vs demand: Housing supply remains tight. Population growth and investor activity continue to support price growth.
National Market Snapshot: National home values rose 0.5% in December. Annual growth is now 7.8%. WA and QLD continue to lead the market.
What this means for you:
- Review your home loan
- Consider unlocking equity
- Take advantage of lender competition
If you wish to discuss this further, feel free to reach out.
Melbourne Rental Market 2025: Tight Conditions and Steady Demand (cotality.com.au)
In 2025, Melbourne’s rental market remained strongly in landlords’ favour, with tenant demand continuing to exceed supply. Vacancy rates stayed low, supporting rental stability, while rent growth moderated after earlier sharp increases. Ongoing population growth and limited new rental stock sustained strong interest, particularly in inner and middle-ring suburbs. Overall, the market demonstrated resilience, offering property owners stable conditions despite wider economic changes.
Key Points:
Low vacancy rates kept pressure on rents: Melbourne’s vacancy rate stayed tight through the year, often below balance points, signaling continued competition among renters.
Rental growth moderated but remained positive: While the pace of rent increases wasn’t as sharp as in previous years, rents largely held solid and continued to rise in many suburbs.
Strong demand across the city: Inner suburbs and popular family areas saw high demand, while outer-ring locations continued to attract renters seeking value and space.
REIV Data: 2025 Sales Volumes Show Market Momentum Compared to 2024 (reiv.com.au)
Victorian property sales showed increased resilience and activity in 2025 compared to 2024, according to REIV data. Auction results strengthened, with the September quarter recording 7,481 auction sales — up 5.8% year-on-year and marking one of the strongest spring periods in recent years. Rising median prices across metropolitan and regional Victoria reflected improved buyer confidence and tighter supply, signalling a more active sales market overall despite some ongoing balance between supply and demand.
Key Points:
- Auction sales were up ~5.8% in 2025 vs. 2024 for the September quarter
- Increased sales activity signals stronger buyer participation this year
- Growth in median prices across Victoria reflects continued market demand
Rate Shock: RBA Could Deliver Another Hike Within Months (abc.net.au)
Recent commentary from economists and market analysts suggests the Reserve Bank of Australia may not be finished with interest rate increases just yet. While inflation has eased, it remains stubborn in key areas, prompting warnings that another rate hike could be on the table within months if economic conditions don’t cool further.
For property owners, this reinforces the importance of cash-flow planning and stress-testing investments — even as the broader market continues to show resilience.
Key Points:
- Inflation remains above the RBA’s target range
- Another rate rise has not been ruled out
- Smart financial planning is essential for property investors
