Melbourne homes linger longer as vendor discounting becomes the new reality

Melbourne's property market is showing unmistakable signs of fatigue, with days on market stretching considerably and vendor discounting becoming standard negotiating currency across almost every postcodes.

Properties that would have sold within two weeks last year are now sitting for six to eight weeks or longer, particularly in established outer suburbs. Real estate agents working the Frankston corridor—traditionally a growth corridor riding investor demand—report average marketing periods have extended from 21 days to 35-40 days. In bayside markets like Brighton and Sandringham, where competition remains fierce, homes are still moving relatively quickly, but even premium addresses along the Bay Street precinct are seeing extended campaigns.

The shift is forcing vendors to recalibrate. Properties listed at $1.2 million in suburbs like Glen Waverley and Malvern are increasingly settling for $1.15 million or lower. Units in central locations near the CBD are experiencing similar corrections, with median asking prices around $620,000 adjusted downward by 3-5 per cent through negotiation or price reductions. Across the broader market sitting at approximately $920,000 for houses, the softening is real and measurable.

Auction volumes remain high—weekend clearance rates still attract crowds—but the psychology has shifted. Buyers are emboldened by longer listing periods, which signal reduced vendor urgency. Properties that appear online with extended days-on-market histories often trigger lower opening bids, as prospective purchasers sense negotiating leverage.

Inner East pockets, traditionally insulated from softening, are not immune. Suburbs like Camberwell and Surrey Hills, historically resilient, are now seeing modest price adjustments and longer selling periods. Even properties in proximity to strong drawcards like The Dandenongs or established shopping precincts are experiencing slower movement.

The trend reflects broader economic headwinds: elevated interest rates, tax changes affecting investor returns, and record migration numbers creating uneven demand across the metro area. While some locations—particularly those with development upside or proximity to major employment hubs—maintain relative strength, the days of rapid turnaround sales have largely evaporated.

For sellers, the message is clear: realistic pricing and acceptance of modest discounting are essential to clearing stock efficiently. Agents report that properties priced within 5 per cent of likely sale value are achieving results within 30-35 days, while those listed optimistically languish beyond 50 days, ultimately selling for larger reductions.

The market hasn't collapsed, but it has fundamentally rebalanced in favour of purchasers willing to wait and negotiate.

This article was compiled by AI and screened before publishing. See our editorial standards.