Days on Market Stretch as Vendor Discounts Climb in South Melbourne

Average days on market for South Melbourne homes reached 47 days in the June quarter, up from 38 days in the same period last year, while median vendor discounts widened to 4.8 percent.

Global jitters hit local listings

Uncertainty from recent US strikes in the Strait of Hormuz and NATO rearmament talks has cooled some investor interest, according to agents who spoke with buyers at open homes last month. Sellers who listed in April expecting quick sales now face longer waits, particularly for properties priced above $1.8 million.

Clarendon Street terraces and units near the South Melbourne Market have shown the clearest shift, with several owners trimming reserves after initial auctions failed to meet expectations. The Emerald Hill precinct around the Town Hall has recorded similar patterns, where three properties that passed in during May later sold privately with cuts of between $80,000 and $120,000.

Street-level numbers and buyer response

CoreLogic figures released 1 July show that homes on Park Street and Cecil Street averaged 52 days on market, compared with 41 days across the broader postcode. One two-bedroom unit at 112 Ferrars Street listed at $1.45 million on 12 May and settled on 28 June after a 5.2 percent reduction.

Buyers at recent inspections along York Street have cited the longer timelines as leverage, with several negotiating inspections of comparable properties on nearby Montague Street before committing. Local agents note that first-home buyer grants tied to the state’s shared equity scheme have kept some demand steady despite the discounting trend.

Properties that stay listed beyond 60 days are now more likely to receive revised marketing campaigns, including price adjustments advertised on major portals within two weeks of the original campaign launch. Prospective purchasers monitoring the South Melbourne Primary School catchment have been advised to review settlement timelines before lodging offers, given the current clearance rates hovering near 62 percent.

Agents recommend vendors obtain updated comparable sales data from the last four weeks before setting reserves, particularly for three-bedroom homes near Albert Park Lake. Early price positioning within 3 percent of recent street sales has shortened marketing periods by an average of nine days in the past month.

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.