Edition #6
This week in Property - Tuesday 28 July
· Suburb Spotlight: Pakenham VIC 3810
Auctioneer's worst day in 30 years, Westpac opens the door for investors, and the RBA's August call hangs on Wednesday's inflation figures.
This landed in inboxes on Tuesday 28 July 2026. Get the next one free, every Tuesday morning.
Market Pulse
3 things that moved, and what they mean for you
This week the cooling market got its most dramatic headline yet, one bank moved to court investors, and all eyes turn to the Reserve Bank.
1. "The worst auction day in 30 years." Sydney auctioneer Tom Panos called last weekend the worst of his 30-year career. Six auctions, zero sales, and by his own account not a single registered bidder. It is one man's Saturday, but it captures the mood. Buyer urgency has drained out as higher rates and cost-of-living bite. The high end of the property market is feeling this pressure more than the middle and lower price points.
2. Westpac opens the door wider for investors. On 16 July, Westpac loosened its investment lending in two ways.
- Investors can now buy with a 5% deposit (paying LMI, up to a 95% loan-to-value ratio).
- Interest-only terms stretched from 10 years out to 15 years (on loans up to 80% LVR).
It is aimed at investors, not first-home buyers, but it still matters to you. More investors competing for entry-level homes means more competition for the properties first-home buyers are chasing.
3. The RBA could hike again on 11 August. The Reserve Bank has already lifted rates three times this year to 4.35% and held in June. Now around 55% of economists expect at least one more hike in 2026, and most of them tip August as the moment. CBA, NAB and ANZ expect the Reserve Bank to hold, while Westpac is tipping another rise. It all hinges on this month's inflation figures, which are released on Wednesday the 29th.
What it means for you
the market is cooling and buyers have more leverage than they have had in years, but borrowing power is the catch. If the RBA hikes again, the amount you can borrow shrinks. A softer market with dearer money is a strange mix, so make sure your numbers still work at a higher rate before you commit.
Negotiation Tip
In a weak auction market, offer before auction day
With barely half of capital-city auctions selling, vendors are increasingly nervous about a public pass-in in front of the street. That fear is your opening, and you can use it before the hammer ever comes up.
How to use it.
- Table a clean pre-auction offer = finance sorted, minimal conditions, and a short expiry. Certainty is worth a lot to a vendor staring down a soft auction.
- Anchor it to the evidence = recent comparable sales, plus the simple fact that half of auctions are currently failing. You are offering to take that risk off their hands.
- Watch for the signals = a price-guide cut, a quiet first open, or a campaign dragging past a few weeks all say the vendor may prefer a bird in the hand to auction day.
The Data
This week's auction clearance rates
| City | Clearance rate |
|---|---|
| Sydney | 56.1% |
| Melbourne | 54.6% |
| Canberra | 53.1% |
| Adelaide | 52.6% |
| Brisbane | 30.5% |
| Perth | 25.0%* |
The auction clearance rate is the quickest way to read the market's temperature. A high rate (above 70%) means buyers are competing hard and prices tend to rise; below 60% and the pressure sits with sellers. This week the combined capitals cleared 52.4%, up a touch from 50% last week, so the finalised data is steadier than the auction-room mood suggests. Even so, with nearly half of all homes failing to sell under the hammer, and Brisbane and Perth well behind, the balance of power is still firmly on the buyer's side.
Suburb Spotlight
Pakenham VIC 3810
| Median Price | $715,000 |
| Capital Growth (12mo) | 8.3% |
| Rental Yield | 4.03% |
| Weekly Rent | $567 |
| Vacancy Rate | 0.82% |
| DSR Score | 51 |
| Days on Market | 21 days |
| Stock on Market | 4.65% |
| Vendor Discount | 1.09% |
| Renter to Owner-Occupier Ratio | 32.2% |
Our Analysis = Pakenham is a south-east growth-corridor suburb, feeding off buyers priced out of the suburbs one step closer to the city. It is not a standalone regional town. It sits at the end of the metro train line, about 53km from the Melbourne CBD, with the infrastructure and population growth of a genuine commuter belt. The fundamentals are genuinely strong. Vacancy at just 0.82% is tight, homes sell in a quick 21 days, and vendors are giving up barely 1.09% off their asking price. It is also owner-occupier heavy, with renters only 32.2% of the market, which points to a stable and less speculative base. Values are up just 8.3% over the year, which is exactly the appeal. The suburb has not run away yet, so now is a good time to get in, and it shapes up as a strong long-term play. Its stock on market reads high, but that is the house-and-land package releases in the corridor, not weak demand. The only real negative here is a DSR sitting right on the balance line at 51. Everything else points firmly in the right direction.
Unsure how these stats affect capital growth? Check out our Instagram that breaks down each term.
Reader Question
If the RBA might hike again, should I fix my rate?
With another rise on the table for August, it is a fair question. But fixing is not a bet on the Reserve Bank, it is a trade-off, and the other side has a cost.
The trade-off.
- Fixing buys certainty = if a hike would genuinely stretch your budget, locking part of your loan protects your repayment from the next move.
- But you pay for it = fixed rates already price in the hikes the market expects, and you give up flexibility, extra repayments, an offset account, and you can face break costs if your plans change.
- Your budget matters more than your forecast = if the loan only works at today's rate, that is the real warning sign, no matter which way rates move. A common middle ground may be to potentially split the loan, fixing part of it while keeping some on a variable rate.
The call comes down to whether your repayments still work if rates rise, not to out-guessing the RBA. A broker can help you weigh up a split loan.
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