Soaring advertising costs and post-budget caution are reshaping how Australians sell property
Australia's property market is seeing a marked shift toward off-market selling, as vendors respond to the confidence shock triggered by the federal Budget.
Agents across the country are reporting buyer hesitation, weaker auction clearance rates, and growing reluctance among sellers to commit to the expense of traditional advertising campaigns.
According to Zac Burd, founder of real estate platform PropApp, budget-related pressures — including higher living costs and tighter borrowing conditions for investors — have accelerated a trend already underway.
"We're seeing a clear shift in seller behaviour, with more vendors looking for lower-cost ways to transact," Burd (pictured right) said. "Off-market selling is becoming a first step rather than a last resort."
Burd notes the level of uncertainty in the market is unusual. "We haven't seen this level of uncertainty in decades, and it's forcing both buyers and sellers to rethink how they transact," he said. "When confidence softens, people naturally gravitate toward simpler, safer pathways that reduce risk and give them faster feedback."
Several capital cities have recorded their weakest auction clearance rates of the year, with investors reassessing borrowing capacity and deferring decisions. "This combination of weaker investor confidence and reduced activity is prompting more vendors to rethink how much they spend to bring a property to market," Burd said. "That's why we're seeing more vendors test the waters off-market first, because it reduces cost and gives them clarity before committing to a full advertising campaign."
The trend is evident in regional markets as well. In Bendigo, Victoria, agents say the cost savings are a significant drawcard for sellers.
"The major sales portals will charge around $1,800 just to go online, and once you add digital marketing and everything else, it starts to add up," said Chevez Evans (pictured right), sales agent at PH Property. "By going off-market first, vendors can save $3,000 to $4,000 straight away in our region."
The savings are particularly relevant for downsizers, first-time sellers, and cost-of-living-pressured households, Evans adds. "Four grand is a lot of money for someone," he said. "If you can have more money in your pocket, it's a win-win. The appeal of off-market selling in the $400,000 to $700,000 price bracket — where competition in Bendigo remains strong — now extends across all demographics, according to Evans.
In Melbourne, agents are observing similar patterns. George Ioannou (pictured right), a sales agent at Harcourts Rata & Co, says investor-owned properties stand to benefit particularly from off-market campaigns.
"For many investors, it's not just the marketing costs – it's the cost of having a property sit vacant during a full sales campaign," Ioannou said. "Going off-market first means they don't have to remove a tenant, which avoids stress for the tenant and saves the owner thousands in lost rent."
Ioannou estimates that Melbourne vendors can face marketing costs of between $5,500 and $7,500 through conventional channels. "Going off-market first lets them avoid that upfront hit," he said.
"For investors, off-market sales become more of a mathematical transaction. There's a single asking price, they can run their returns, and there's no smoke and mirrors."
Ioannou believes the shift is structural rather than cyclical. "Off-market should be the first approach to selling a property before going live because it lets vendors test the waters without big financial outlays," he said.
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