Redlend Weekly 11
Edition 11 - 5 October 2026
I hope you all had a good weekend. A quieter one at my end as we get ready for the kids going back to school. A welcome back to daylight savings and all the feels of an upcoming summer upon us.
Talk Soon!
Adam
This Week…
Buyers are still there, but they’re becoming more selective
Get your borrowing capacity checked before you start looking
Property potential in Frankston
Suburb Spotlight in Frankston
Mortgage News
Buyers are still there, but they’re becoming more selective
Melbourne’s auction market is showing signs of a more cautious buyer environment, with auction volumes significantly lower than this time last year.
Around 648 properties were scheduled for auction in Melbourne this week, down about 39% year on year, as higher interest rates continue to put pressure on borrowing capacity.
But lower activity doesn't necessarily mean buyers have disappeared.
There are still plenty of committed buyers in the market, particularly where properties are well priced and offer genuine value. The difference is that buyers are becoming more conscious of what they can afford and are less willing to stretch beyond their comfort zone.
A property might be cheaper than it was 12 months ago, but borrowing capacity and repayments have also changed. So the price of the property isn't the only number that matters.
For agents and sellers, it reinforces the importance of understanding where buyers' finance limits are sitting before going to market.
There's another change coming in Victoria too.
From 16 October, new rules will require sellers to disclose their reserve price at least seven days before an auction. The changes are designed to provide greater transparency, although there are concerns within the industry about how the new rules will affect auction campaigns.
We're in a market where buyers are still buying, but finance is playing an increasingly important role in determining which properties they pursue and how far they're prepared to go.
For anyone considering buying or selling, understanding the numbers before the campaign starts could be more important than ever.
Mortgage Tip
Get your borrowing capacity checked before you start looking
It sounds obvious, but buyers often start searching based on the property price they think they can afford, rather than what a lender will actually let them borrow and there can be a big difference.
Your borrowing capacity can be affected by things like credit card limits, existing debts, dependants, overtime, commission, HECS/HELP debt and even how different lenders assess your income.
Getting a proper assessment before you start inspecting properties means you know your realistic price range, rather than finding the perfect property and then discovering the finance doesn't stack up.
It also makes the buying process easier for everyone involved, particularly when you're competing at auction or making an offer.
Don't just ask, “How much can I borrow?” Ask, “What price range can I comfortably buy in, and what would the repayments look like?”
That keeps the focus on what you can afford, not simply the maximum a lender may approve.
Property Spotlight
Frankston - Victoria
This week I came across an interesting property in Frankston that caught my eye, 7 Holmes Street.
It's a three-bedroom home on approximately 406m², currently advertised at $695,000–$764,500.
What makes it interesting isn't necessarily that it's a spectacular house. It's the combination of price, location and potential.
The property sits within the Frankston High School Zone and is close to Leawarra Station, Frankston Hospital, Monash University and Frankston's CBD. The home itself has already had some updating, including a new kitchen with sintered stone benchtops and splashback, while still offering scope for a buyer to personalise and improve it over time.
At the top of the advertised range, you're looking at around $765,000 for a three bedroom house in a well established part of Frankston.
Rather than paying $1m+ for a fully renovated property in some suburbs, properties like this can provide an opportunity to buy into an established location and create some of the value yourself.
Of course, the purchase price is only part of the equation. Renovation costs, borrowing capacity, holding costs and the property's eventual value all need to stack up before taking on a project.
But that's exactly what I like about looking at properties this way.
It's not always about finding the perfect house. Sometimes it's about finding the right property with enough upside to make the numbers work.
Here is what the numbers could look like…
Approximate numbers for general information only, this is not financial advice and individual circumstances will vary.
Assuming we are a first home buyer eligible for the Australian Government 5% Deposit Scheme and the Victorian Government Stamp Duty Concessions.
Assume a Sale @ $764,500
A Deposit @ 5% = $38,255
Stamp Duty & Government Fees @ $42,963
Conveyancing & Building Pest Inspection @ $3000
Savings Required $84,218
Monthly Repayments @ $4590
Based on 6.5% Interest Rate, 30 years, Principal & Interest
Suburb Spotlight
Frankston
Frankston has been one of Melbourne's more interesting affordable market stories over the past year.
The current median house price sits at around $860,000, with house values increasing 9.6% over the past 12 months.
For investors, the numbers are also worth a look. Houses are currently renting for a median of around $600 per week, producing a 4.2% gross rental yield.
The market is moving reasonably quickly too, with houses spending a median of 26 days on the market.
There's also a significant difference between property types. The median unit price is around $585,000, with units recording 6.4% annual growth and a slightly higher 4.7% rental yield.
So what's making Frankston interesting?
It's still relatively accessible compared with many established Melbourne suburbs, while offering beaches, transport, shopping and established infrastructure. There's also a large amount of older housing stock, which can create opportunities for buyers willing to take on a property that needs some work.
For me, that's the interesting part.
Rather than simply looking for the cheapest suburb, look for established areas where you can buy well and potentially add value to the property over time.
Property data supplied by Cotality. Figures current as at 04 October 2026 and provided for general information only, not personal financial or property advice. If you would like your own free property report, please email me below.
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Lets Talk Property
Whether you're buying your first home, refinancing, investing or just looking for some guidance, I'm always happy to have a conversation.
No pressure. No obligation. Just honest advice to help you make informed property decisions.
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