Days on Market Trends Show Rise in Vendor Discounting in South Melbourne

Properties in South Melbourne took an average of 51 days to sell during June, up from 34 days in the same month last year, according to records compiled by local agencies.

Global events including the NATO summit in Turkey have added uncertainty to buyer pools that include overseas investors who normally target inner-city stock. This timing matters because it coincides with the end of the financial year when many owners review holdings and decide whether to adjust asking prices or withdraw listings.

Clarendon Street terraces between Park and York streets show the clearest shift, with four properties first listed in early May still on the books after eight weeks. Around the South Melbourne Market on Coventry Street, two-bedroom units have required price reductions averaging $28,000 to reach contracts.

Figures released on 5 July by the South Melbourne Real Estate Institute put median vendor discounting at 4.3 percent for sales settled in the Emerald Hill area during the June quarter. The same report recorded 27 properties sold with discounts of five percent or more, compared with 11 in the March quarter.

Street-level movements

Along Ferrars Street, a renovated worker’s cottage listed at $1.65 million on 12 May sold on 28 June after a $72,000 reduction. In contrast, three apartments in the 3000 block of Kings Way that entered the market on 3 June remain listed at their original prices and have now passed the 35-day mark. Data from the same institute shows that 62 percent of June sales occurred after at least one price adjustment, the highest share since December 2024.

Practical steps for owners and buyers

Sellers listing before the end of July should review comparable sales from the past six weeks rather than older benchmarks, particularly for stock near the market or along Clarendon Street. Buyers can prepare offers that factor in a further one to two percent buffer on properties that have already been listed for more than 40 days. Agents report that inspections booked for the coming weekend will determine whether the current trend holds into August.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.