More Change... But Also More Opportunity

If you've been following the Victorian property market over the past 12 months, you'll know one thing for certain and that is change has become the new normal.

Whether you're a homeowner, investor, landlord or buyer, the amount of legislative reform affecting property has been significant. We've seen numerous changes to rental legislation, increasing compliance obligations for rental providers, changes affecting buyers using self-managed super funds, and now another major proposal that could fundamentally change the way residential property is bought and sold in Victoria.

One of the latest proposed reforms contained within the Victorian Consumer Legislation Amendment Bill would require a Section 32 Vendor Statement to be available for at least 14 days before a contract can be signed. For auction and fixed-date sales, the Section 32 would also need to be available at least 14 days before the advertised sale date. If passed, the change is proposed to commence from 1 June 2027.

The Government's objective is understandable. It aims to give purchasers more time to obtain legal advice, organise building and pest inspections, and reduce the pressure to make rushed decisions.

However, many within the property industry, including buyer's advocates, agents, conveyancers and lawyers have raised concerns that the proposal could have unintended consequences. It may reduce the ability for willing buyers and sellers to transact quickly, make pre-auction sales far less common, increase competition at auction, extend selling campaigns and remove flexibility for both vendors and purchasers.

Regardless of where you sit on the debate, one thing is becoming increasingly clear: Navigating the Victorian property market is becoming more complex.

Today's buyers need to understand not only the property itself, but also finance requirements, contracts, planning controls, compliance obligations and an ever-growing list of legislative changes. Professional advice has never been more valuable.

Why We Believe Melbourne Represents Outstanding Buying

Ironically, while much of the conversation focuses on regulation, we believe many buyers are overlooking one of the best opportunities we've seen for several years.

Unlike Queensland, Western Australia and parts of South Australia, Melbourne has not experienced the same level of capital growth over recent years. As a result, many quality homes remain available at prices that compare favourably with other capital cities.

We're beginning to see this recognised by buyers outside Victoria.

Over the past few months we've noticed a clear increase in enquiry from interstate buyers who view Melbourne as offering genuine long-term value. They recognise that while sentiment may currently be subdued, the underlying fundamentals remain very strong.

Some of those fundamentals include:

• Melbourne continues to be one of Australia's fastest-growing cities.
• Many of our most desirable suburbs are effectively landlocked, with very limited opportunity for additional housing supply.
• Construction costs continue to rise, making it increasingly expensive to build a comparable home from scratch.
• In many established suburbs, purchasing an existing quality home represents better value than buying land and building a new one.
• Interest rate expectations have become more favourable, improving buyer confidence.
• There is growing optimism that future policy settings in Victoria may become more supportive of property ownership and investment.

Markets Can Change Very Quickly

One thing we've learnt after decades of representing buyers is that markets rarely provide much warning before sentiment changes.

While many people are currently sitting on the sidelines waiting for greater certainty, history suggests that once confidence returns, competition can increase remarkably quickly.

The best buying opportunities often exist when uncertainty is highest—not after everyone has recognised the opportunity.

By the time headlines become overwhelmingly positive again, many of the best properties have already been purchased and prices have often begun moving higher.

Our Advice

Rather than trying to perfectly time the market, focus on buying the right property.

Quality real estate in tightly held locations remains scarce regardless of market conditions. If you can secure an investment-grade property at today's prices, undertake thorough due diligence and negotiate well, time generally becomes your greatest ally.

While legislation, interest rates and market sentiment will continue to evolve, the fundamentals that drive long-term property performance remain remarkably consistent.

At Buyers Advocate Australia, we'll continue to monitor these changes closely, provide independent advice, and help our clients navigate an increasingly complex market with confidence.

In this month's newsletter you'll also find:

• Melbourne Market Update
• Recent Buyers Advocate Success Stories
• Property Management Update
• Vendor Advocacy Update
• Tip of the Month: Why Buyers Struggle to Buy Property Well in Melbourne