Selling a rental property in Melbourne in April 2026 presents a mixed picture. While vendor confidence has improved and listings are up significantly (Raine & Horne report a nearly 40% increase since December 2025), recent RBA rate hikes have introduced caution and dampened buyer urgency (Domain). The market is showing outer-suburban uplift and unit rents are rising faster than house rents (NAB/Cotality, March 2026), but overall price growth forecasts have been revised downwards.
The Melbourne property market is currently navigating a period of adjustment. Increased listing volumes suggest vendors who previously held back are now entering the market, responding to improved confidence late in 2025. However, the February and March 2026 RBA rate increases have introduced a new layer of price sensitivity, meaning a nuanced approach to selling is crucial.
What’s happening with listing volumes right now?
Listings have increased substantially in early 2026. Raine & Horne reported listings up nearly 40% since December 2025, with appraisals surging over 75% month-on-month. This indicates a shift in vendor sentiment, with more homeowners now prepared to test the market. Open for inspection attendances across Australia are also up 3% year-on-year (Raine & Horne), suggesting continued buyer interest despite recent rate rises.
Are prices still rising in Melbourne?
Price growth forecasts have become more uncertain. KPMG initially projected 6.6% Melbourne house price growth for 2026, but ANZ has revised its forecast to -1.7% following the March 2026 rate hike. The market is currently characterised by outer-suburban uplift and growth in the north and west (Cotality, March 2026), with lower-priced properties helping to offset overall weakness. Roughly 60–65% of Melbourne properties are selling at or below asking price (Bamboo Routes, early 2026).
How does the time of year affect my sale?
Spring (September–November) remains the peak selling season in Melbourne, offering the highest buyer numbers and strongest auction clearance rates. Autumn (March–May) is the second-strongest, often with less competition. While February traditionally marks a restart after the summer holidays, the recent RBA rate rises have introduced a more cautious buyer mindset. Winter (June–August) sees lower volume but can yield competitive prices from motivated buyers.
The timing risk
The biggest challenge for vendors right now is navigating the uncertainty created by the RBA’s recent actions. While buyer activity doesn’t simply disappear with interest rate rises (LJ Hooker), the market does moderate and become more price sensitive. Accurately gauging buyer appetite and setting realistic price expectations is more critical than ever. The potential for further rate changes adds another layer of complexity.
Frequently asked questions
Will I get the price I want for my investment property?
Achieving your desired price depends heavily on location and property type. Currently, around 60–65% of Melbourne properties sell at or below asking price (Bamboo Routes, early 2026). Well-run auctions in desirable suburbs with strong school zones or transport links still have the potential to achieve results at or slightly above the quoted range.
What impact do interest rate rises have on rental properties?
Rate rises introduce caution among buyers, potentially reducing demand and putting downward pressure on prices. However, Melbourne’s chronic undersupply of housing and strong population growth continue to support the medium-term value of rental properties. Unit rents are currently rising faster than house rents (Cotality, March 2026).
Should I hold onto my property if I don’t need the funds immediately?
If your property is positively geared or near-neutral, the rental income can offset holding costs. Deferring Capital Gains Tax (CGT) also allows you to retain control over when you crystallise any tax liability. Long-run structural drivers suggest continued value appreciation in Melbourne.
What’s happening in the outer suburbs compared to inner Melbourne?
The market is currently showing outer-suburban uplift, with stronger growth observed in the north and west (Cotality, March 2026). This suggests buyers are seeking more affordable options further from the city centre. However, overall house price performance is currently lagging unit performance.
Questions to ask your agent
- Based on recent sales data for comparable properties in my area, what is a realistic price range for my property right now?
- What marketing strategies will you employ to maximise buyer interest, given the current market conditions?
- Can you provide a detailed breakdown of your commission structure and the expected costs associated with selling my property?
This article contains general market information based on data current
as at April 2026. It does not constitute financial, legal, or real estate
advice specific to your property or circumstances. For an appraisal and
tailored advice, speak with a Fletchers agent in your area.
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