Deciding whether to prioritise capital growth or rental yield when selling a property involves understanding what currently motivates buyers in Melbourne and how that impacts value. As of December 2025, the Melbourne property market is experiencing moderate growth, forecast at 3-6% for 2026, alongside consistently strong rental demand.
Currently in Melbourne, particularly within the Eastern Suburbs – areas like Balwyn, Doncaster, and Ringwood where Fletchers has a strong presence – buyers often consider both factors. However, presentation and potential for future capital gain frequently favour properties with renovation scope or desirable land size. In 2026, we’re seeing buyers prepared to pay a premium for homes near quality schools and transport links. A property yielding a high rental return might appeal to some, but the overall sales price is more heavily influenced by perceived growth potential. The typical selling campaign in Melbourne runs for 4-6 weeks, with buyers undertaking due diligence during a 2-4 week inspection period. Sellers should realise that preparation costs – styling ($2,000-$8,000), photography ($500-$1,500) – are investments in maximising that perceived value. Agent commission typically falls between 1.5-2.5% and marketing campaigns range from $3,000-$8,000.
Ultimately, the balance between growth and yield is a market-driven consideration, and understanding current buyer preferences is key to achieving the best possible outcome when selling.