April 2026 Newsletter
HEY NEIGHBOUR!
There’s no denying it—this year has started with a few headwinds that are being felt across the board. Ongoing fuel shortages and rising petrol prices are once again putting pressure on households and businesses alike, feeding directly into the broader cost of living conversation. From groceries to utilities, it seems every expense is creeping upward, leaving many Victorians tightening their belts and reassessing financial priorities.
These pressures are beginning to show in the property market as well. After a sustained period of resilience, we’re now seeing a noticeable cooling in sales activity across Victoria. Buyer confidence has softened, days on market are stretching, and vendors are having to adjust expectations in a market that’s becoming increasingly price-sensitive. While this shift isn’t dramatic, it’s enough to signal that we’re entering a more balanced—if not slightly cautious—phase.
With ANZAC Day approaching, it’s also a timely reminder to pause and reflect on something far more important than market cycles or economic pressures. The ANZAC tradition is deeply embedded in Australian culture—about service, sacrifice, and resilience. It’s a moment each year that brings perspective, reminding us of the strength and spirit that have shaped the country, and perhaps encouraging a sense of gratitude amidst the current challenges.
And just when we were hoping for a bit of relief somewhere… along comes footy season. Unfortunately for supporters of the Carlton Football Club, early signs aren’t exactly inspiring confidence. It’s shaping up to be a season that may test the patience—and loyalty—of even the most die-hard fans. Let’s hope things turn around quickly, but if not, it could be a long year ahead at Princes Park.
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.
Key Highlights:
- Interest rates: Now at 4.10%, likely to rise again → borrowing power shrinking.
- Property Prices - Victoria / Melbourne: ~$977k houses / $642k units → modest growth (~6.6%) expected, but market split (affordable stronger).
- Rental Market: Very tight (1.7% vacancy) → rents continuing to rise.
- Investors Activity & Lending: Higher costs, but strong rents supporting returns.
- National Market Snapshot: Growth slowing (~5%), with Melbourne becoming better value.
What to Watch
- Rate hikes likely: May increase could further tighten borrowing capacity.
- Rental pressure: Vacancy remains well below 2.5%, keeping rents elevated.
- Lender competition: Banks still competing, particularly for strong borrower profiles.
- Buyer dynamics: Mixed sentiment, but pre-approved buyers are in a stronger position.
What this means for you:
- Review your loan structure: Consider balancing fixed and variable rates to manage risk.
- Protect cash flow: Rising rates are reducing borrowing power — plan ahead.
- Leverage equity: Property values remain positive, creating opportunities to access equity.
- Stay active: Don’t assume your current loan is competitive — better options may still be available.
If you wish to discuss this further, feel free to reach out.
March Quarter 2026 Median Prices Released – What It Means for Melbourne (reiv.com.au)
Melbourne’s market remains steady on the surface, but conditions are tightening. Buyer caution, affordability limits, and varying stock levels are creating a more selective environment where outcomes depend heavily on property quality and pricing.
Key Points:
- Prices holding, but demand is more cautious
- Clear split between high-quality and secondary properties
- Investor activity shifting due to rising costs and regulation.
Victorian Politics Reset: Allan’s Cabinet Reshuffle Signals Election Mode (afr.com)
The Victorian Government has implemented a major cabinet reshuffle to reset its position ahead of the next election, elevating new ministers and refocusing on key voter concerns like cost of living, housing, and safety. The move also signals a consolidation of leadership, reinforcing Premier Jacinta Allan’s authority amid internal pressure. From a property standpoint, changes to planning and infrastructure portfolios could lead to policy shifts or short-term uncertainty in an already softening market.
Key Points:
- A strategic reshuffle aimed at resetting the government ahead of the next election
- Renewed focus on housing, cost of living, and community concerns
- Potential policy shifts in planning and development that could impact the property market
AI Fraud Scandal: A Wake-Up Call for Australia’s Lending System (afr.com)
- AI is now being used to create sophisticated, large-scale financial fraud
- Up to $1 billion in loans may be affected, exposing gaps in verification systems
- Expect tighter lending standards and increased scrutiny moving forward
