How’s The Market? Why Some Melbourne Properties Are STILL Selling Above The Price Guide

In This Week’s How’s The Market | Edition 170

• Great Properties Are Still Commanding Premiums

• Why Some Melbourne Homes Sell And Others Sit

• Victorian Grandeur on St Vincent Gardens

  ---

  Melbourne’s property market is a little confusing right now.

  Prices are falling, buyers have more choice, and some properties simply aren’t selling. Yet every weekend, we’re still seeing great properties sell hundreds of thousands above their advertised range.

  So, what’s really going on?

  I think the gap between great and average properties is getting bigger and these three weekend sales show it perfectly.

  ---

  1. There Isn’t One Melbourne Property Market

  Melbourne’s market isn’t one-size-fits-all – two similar properties can have completely different results. 

  One passes in, while another attracts four bidders and sells $200k above the advertised range. 

  The real story is what’s happening at the property level.

  2. Buyers Have Become More Selective

  This is probably the biggest shift I’m seeing. 

  When the market is hot, buyers compromise – right now, they don’t have to.

  If they don’t love a property, they’ll wait, widening the gap between great homes and everything else.

  3. Scarcity Still Creates Competition

  A weak market doesn’t create more great properties – the best homes are still hard to replace.

  I’d rather buy a great property at a good price than a good property at a great price.

  4. Price Point Changes Everything

  You can’t compare a $900k market with a $3m market – the buyer pool shrinks dramatically as prices rise.

  Yet exceptional properties can still attract strong competition, even at the top end.

  5. Don’t Confuse Selling Above The Guide With Overpaying

  A $1.7M – $1.8M guide selling for $1.95M doesn’t automatically mean someone overpaid.

  PRICE GUIDE: $1.7M–$1.8M → TRUE VALUE: $1.9M–$1.95M

  Property #1 

  19 Burns Street, Elwood, Vic 3184

  Quoted: $2,650,000 – $2,800,000

  Sold: Circa $3,100,000

  So, what drove the premium?

  A rare 700m²+ block, beautiful Edwardian charm, 5 beds + study, two living zones and light-filled living spaces – a combination buyers simply don’t see often. 

  Property #2

  5 Kerferd Road, Glen Iris, Vic 3146 

  Quoted: $1,750,000 – $1,890,000

  Sold: Circa $1,800,000

  689m² in a premium Glen Iris street, with beautiful bones – so why did it only sell mid-range?

  A 4-bed, 2-bath Californian Bungalow with plenty of potential, but an awkward floor plan, needed updates and heritage restrictions limited its appeal.