Melbourne prices face further falls as rate rise looms over sluggish auctions

A leading auctioneer has revealed a repeal of investor tax rule changes by the Albanese government could add 10 per cent to Melbourne home values “overnight”. Melbourne’s already struggling auction market has limped through the threat of an interest rate hike as soon as next Tuesday with barely a few hundred sales. It comes as the chief auctioneer of the state’s biggest real estate firm has estimated repealing a series of Albanese government May budget changes to property investor tax settings would add 10 per cent to the value of most auctions overnight. Realestate.com.au auction data yesterday showed there was a 53.4 per cent clearance rate, about 203 sales, from 380 results on a subdued weekend ahead of the Melbourne Cup on Tuesday. RELATED: ‘Like a plague’: grim forecast for Melb auctions The new future on the cards for Mushroom Records Vic gov’s shock response as grim new rental crisis data emerges Recent weeks suggest it will revise down by a few per cent in the coming days as more results are received. But with the Reserve Bank also expected to stop the nation’s home loan holders with an interest-rate hike next week, market watchers have insisted it is prices that are more l...