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Shift to Off-Market Sales in Melbourne’s Cooling Property Market
Recent observations in Melbourne’s real estate landscape indicate a notable trend — more home sellers are opting for off-market sales as property prices face a downturn. Emily Wallace, a buyers’ agent, highlights that this shift reflects a growing unease among vendors who seek to avoid public scrutiny amid fluctuating market conditions.
Current Market Dynamics
Wallace points out that an increasing number of sellers desire to keep their sales under wraps due to the uncertain nature of the housing market. Many vendors feel a sense of safety by avoiding exposure in what is perceived as a turbulent environment. When discussing her insights with Yahoo Finance, Wallace noted, “They are prepared to sell, but not in public.”
Opting for an off-market route can often be less advantageous for sellers; however, many view it as a strategic measure to sidestep commitment to a publicly listed price, thereby escaping the risk of an unsuccessful campaign typically associated with traditional listings. Moreover, off-market sales eliminate hefty marketing costs associated with listings on major property portals, making it a more financially appealing option for non-committal sellers who may be testing the waters.
Increasing Trend in Off-Market Sales
The trend towards off-market transactions has gained momentum, as highlighted by Wallace’s experience. In a recent month, her agency facilitated the purchase of six properties, with five of them being sold off-market — a striking 83% of their total purchases compared to an average of 58% for 2025.
This increase suggests that many sellers are choosing discretion over broad market exposure as housing prices in Melbourne experienced a slight dip of 0.6% over the March quarter.
Impact on Investors and First Home Buyers
Wallace’s agency primarily aids first-time buyers, and she has witnessed considerable selling activity among property investors as they navigate rising holding costs and regulatory pressures. “So many investors are selling out,” she remarked, noting how this trend has led to a significant reduction in the rental offerings of various real estate agencies, which are now increasingly catering to first-time buyers instead.
The shift has drawn attention to the challenges faced by landlords and real estate agencies as they adapt to changing market conditions. In a recent video, Wallace expressed her concerns about the market’s current state, stating, “There’s a bit of uneasiness and a bit of uncertainty… property is doing some funny things right now.”
Off-Market Sales Statistics
Research suggests that around 20% of Australian properties, amounting to approximately 100,000 each year, are sold off-market. This estimation is cited by the Real Estate Buyers Agents Association of Australia (REBAA), despite the acknowledgement that accurate figures are elusive due to the private nature of such transactions.
Furthermore, findings from PropTrack, part of the REA Group, suggest that properties sold off-market typically exchange hands at around 4.3% less than their listed counterparts, indicating potential savings for buyers who are prepared to navigate this less visible segment of the market.
Conclusion
As Melbourne’s housing market continues to navigate fluctuating conditions, the move towards off-market sales provides both challenges and opportunities. While sellers gain a semblance of control and reduced exposure, buyers may find hidden opportunities in this quieter phase of the market. This evolving landscape calls for prospective buyers and sellers to stay informed about emerging strategies and market dynamics as they embark on their real estate journeys.
