Melbourne’s auction market has broken past a key psychological barrier, recording a clearance rate of over 60 per cent for the first time since May as buyer demand builds across the city’s outer fringe and regional corridors.
Driven by strong transaction activity in affordable high-growth pockets, the uptick signals a noticeable shift in buyer momentum ahead of the spring selling season. While middle-ring values have remained quiet, outer-northwest markets are quietly thriving as buyers trade inner-city density for space, community, and value.
Included in the charge is Sunbury, which has defied broader metropolitan headwinds to emerge as one of Greater Melbourne’s strongest-performing SA3 market.
Cotality Home Value Index data for July 2026 shows Melbourne dwelling values fell 2.8 per cent over the past 12 months, yet Sunbury recorded annual growth of 4.3 per cent, pushing its median dwelling value to $729,763.
For lifelong Sunbury and Macedon Ranges resident and Woodards Sunbury & Macedon Ranges director Matthew Makin, the momentum reflects a fundamental shift in buyer priorities.
“There’s a lot of movement for people, probably more in metropolitan regions, moving out to Sunbury for better value,” Mr Makin said. “Instead of buying an apartment, they’re coming out the 30 minutes and then buying a four-bedroom home with a backyard. There’s a lot of drive for that.”
Mr Makin said demand was strongest in the $600,000 to $850,000 price bracket, where young families and upsizers were driving higher turnover.
Improved infrastructure, including upgrades to local train lines, accessibility, and car parking, has further accelerated buyer interest.
“The accessibility, the train line, and the car park have all been upgraded, so Sunbury seems to be well sought after, and you’re still getting that bang for buck as opposed to other locations,” Mr Makin said.
“That’s why Sunbury’s trending up, is everyone’s getting a little bit more money and they’re being able to do what they wanna do.”
Beyond value for money, the combination of village charm and urban connectivity continues to draw buyers away from high-density suburbs.
“It still definitely has a strong community feel,” Mr Makin said.
“There’s a real village atmosphere and you really feel a part of it. You also have the ability to connect to the local clubs and people within them, as opposed to being just another person in a sea of change in a more metropolitan suburb closer to Melbourne.
“There are many good schools, shops and public transport is solid,” he said. “You’ve just got a bit more room and space to breathe.”
A prime opportunity for home upgraders
The spike in entry-level family home demand coincides with easing values at the top end of the market, creating what Mr Makin describes as an unprecedented window for existing homeowners to upgrade.
“If you’re selling in that sort of market and you’re going to upsize and make the change, the top-end market has still fallen quite substantially in the last two years,” Mr Makin said.
“You are able to upgrade your home for a lot less than what you would have had to, say, four years ago. The gap’s never been as close. Yes, it’s more money, but if you’re chasing lifestyle or location, it is a great time to do it.”
He said that sharing positive local market data gives real estate professionals a valuable opportunity to inform homeowners who may not realise how strongly their suburb is performing relative to metropolitan benchmarks.
“It’s about educating people on what’s actually happening in their own backyard,” he said.
“A lot of homeowners don’t realise their area is outperforming the broader Melbourne market, so those conversations can help them make better decisions, whether they’re thinking about selling now or somewhere down the track.”
“If you’re consistently keeping people informed with what’s happening in their local market, you’re building relationships long before they need an agent,” he added. “But when they do, you’re going to be the first name on their lips.”
Macro setting provides underlying support
The turnaround in weekend auction results coincided with yesterday’s Reserve Bank of Australia decision to hold interest rates steady at 4.35 per cent, delivering relief to mortgage holders and providing background stability for buyers evaluating spring listings.
Dr Callum Logan, senior lecturer in RMIT’s School of Property, Construction and Project Management, confirmed that auction clearance rates have shown tangible signs of recovery across eastern capitals.
“This rate decision comes as auction clearance rates improve from their recent lows,” Dr Logan said.
“In Melbourne, last weekend’s auction clearance rates surpassed 60 per cent – the highest level since May this year. Sydney also saw auction clearance rates improve.”
While Dr Logan noted that “clearance rates need to improve further to be reflective of a balanced market,” and pointed to broader investor tax changes and inflation headwinds, the rate hold provides a welcome foundation as spring auction stock begins to hit the market.