If you’ve been following property news lately, you’ve probably seen plenty of headlines suggesting Victoria’s housing market is slowing down. While there is certainly some truth to this, the reality on the ground is far more nuanced.
At Lewin Real Estate, we’re seeing a market that is not declining across the board — it’s becoming more selective. Buyers are still active, quality properties are still attracting strong competition, and well-executed campaigns continue to deliver excellent results.
What’s Changed in the Victorian Property Market?
Several factors have influenced the market throughout 2026.
Interest rates and cost-of-living pressures have encouraged buyers to be more cautious with their purchasing decisions. At the same time, recent policy changes and ongoing affordability pressures have reduced some investor activity across Melbourne and Victoria, creating a market that is increasingly driven by owner-occupiers.
We’re also seeing increased housing supply in many areas, giving buyers more choice and creating a more competitive environment for sellers. Auction clearance rates across Melbourne have softened compared to previous years, meaning buyers are taking longer to make decisions and are less willing to stretch beyond perceived market value.
For more market insights, buyers and sellers can follow:
Government Incentives Are Creating Opportunities
One of the most significant changes in Victoria’s property market has been the continued support for eligible buyers purchasing off-the-plan properties.
The Victorian Government’s off-the-plan stamp duty concession has created renewed interest in new townhouse and apartment developments, particularly among first-home buyers, downsizers and owner-occupiers seeking low-maintenance living. The concession has been extended, providing buyers with an opportunity to significantly reduce their stamp duty costs when purchasing eligible off-the-plan apartments, units and townhouses.
For many purchasers, these incentives can represent substantial savings, making it an ideal time to consider newly built properties and developments. In some cases, buyers may save tens of thousands of dollars in stamp duty, depending on the stage of construction at the time of purchase.
Locally, buyers have an excellent opportunity to secure off-the-plan properties that may qualify for these concessions. Construction has recently commenced at 2A & 2B Eagland Road, Cheltenham, allowing eligible purchasers to take advantage of the benefits associated with buying off the plan while securing a brand-new home in one of Bayside’s most sought-after suburbs.
Apartment buyers should also consider Murrumbeena Place, a boutique off-the-plan development in Murrumbeena offering contemporary residences in a highly connected inner-south-east location, with a range of apartment options available to suit different lifestyles and budgets.
For suburbs such as Cheltenham, Mentone, Parkdale, Edithvale and surrounding Bayside locations, we’re seeing increased enquiry levels for quality townhouse and apartment developments that combine lifestyle benefits with attractive financial incentives.
If you’re considering purchasing a new home or investment property, now may be the perfect time to explore the opportunities available through Victoria’s off-the-plan market.
What Is Selling Well?
The strongest-performing properties continue to share several key characteristics.
Renovated Family Homes
Well-presented family homes in desirable locations remain highly sought after. Buyers are often willing to pay a premium for homes that require little or no additional work.
Recent examples include 22 Avenza Street, Mentone, 19 Harpley Street, Cheltenham, and 8 Ivan Avenue, Edithvale, all of which generated strong buyer interest throughout their campaigns. These properties demonstrated that quality homes in sought-after locations continue to attract competitive enquiry, particularly when presented professionally and marketed strategically.
Quality Townhouses
Modern townhouses continue to perform strongly, particularly among downsizers, first-home buyers, and young families seeking a low-maintenance lifestyle.
Many buyers are prioritising location, convenience, and move-in-ready homes over larger properties requiring renovation.
Properties with Development Potential
Development sites and subdivision opportunities continue to attract strong enquiry from builders and developers.
Recent opportunities such as
- 78 Northcliff Road, Edithvale,
- 20 Edithvale Road EDITHVALE
- 235 Poath Road MURRUMBEENA
- 1/342 Dandenong Road ST KILDA EAST
- 247 Melbourne Road BLAIRGOWRIE
- 48 Graham Road HIGHETT
have all highlighted the ongoing demand for premium landholdings with future development potential.
Homes with Lifestyle Appeal
Properties located close to schools, transport, shopping precincts, parks, golf courses, and beaches continue to outperform broader market trends.
In Bayside and Kingston, lifestyle remains one of the strongest drivers of buyer demand.
What Is Taking Longer to Sell?
Not every property is receiving the same level of buyer attention.
Homes requiring significant renovation, properties with unrealistic price expectations, and listings that are poorly presented or marketed are generally spending longer on the market.
Today’s buyers have access to more information than ever before and are carefully comparing properties before making decisions. As a result, they are less likely to overlook presentation issues or pay above market value.
The market is rewarding quality and transparency while penalising properties that fail to meet buyer expectations.
How Is Lewin Real Estate Performing?
While some agencies are finding the current market challenging, Lewin Real Estate continues to achieve strong results by focusing on what has always worked — local knowledge, strategic marketing, and genuine buyer engagement.
Our team continues to meet hundreds of active buyers every month through Open for Inspections, private appointments, and our extensive buyer database. We are finding that properties marketed correctly, priced appropriately, and presented professionally are still generating strong competition.
Recent sales such as 22 Avenza Street, Mentone, 19 Harpley Street, Cheltenham, and 8 Ivan Avenue, Edithvale demonstrates that quality campaigns continue to outperform broader market conditions. Strong attendance at Open for Inspections, multiple interested buyers, and competitive negotiations remain common across many of our campaigns.
These results reinforce what we’re seeing across Bayside and Kingston: buyers are still active and willing to compete for quality properties that are priced correctly and marketed effectively.
Rather than relying solely on online advertising, we continue to combine traditional real estate principles with modern digital marketing, social media campaigns, database marketing, and direct buyer engagement to maximise exposure for our clients.
For examples of our recent success:
What Hasn’t Changed?
Despite changing market conditions, some fundamentals remain exactly the same.
- Buyers still purchase homes emotionally.
- Presentation still matters.
- Strong negotiation still delivers better outcomes.
- And local knowledge still makes a difference.
While headlines may focus on interest rates, government policy, and clearance rates, the reality is that real estate remains highly localised. The right property, in the right location, marketed correctly, can still achieve exceptional results.
Looking Ahead
The Victorian property market is likely to remain selective throughout the remainder of 2026. Buyers will continue to be value-conscious, and sellers will need to ensure their properties are positioned correctly to attract attention.
However, for those who understand the market and adapt to changing conditions, there are still outstanding opportunities.
At Lewin Real Estate, we remain confident about the future. Our team is seeing strong buyer enquiry, quality competition for desirable properties, and excellent opportunities for both buyers and sellers throughout Bayside and Kingston.
If you’re considering selling, buying, investing, or simply want an honest update on the current market, we’d be happy to have a conversation.
Because while markets change, great real estate advice never goes out of style.
Lewin Real Estate
Local Knowledge. Personalised Service. Exceptional Results.
Disclaimer: Lewin Real Estate and its representatives are licensed real estate agents and do not provide financial advice. Information provided is general in nature only. Please seek independent financial, legal, and taxation advice before making any investment or property-related decisions.