Australia’s property market is shifting rapidly toward off-market selling as vendors react to the confidence shock triggered by the Federal Budget, with agents reporting buyer hesitation, weaker clearance rates and a growing reluctance to spend thousands on traditional advertising campaigns.
PropApp Founder Zac Burd says the budget has intensified pressures already building across the market, particularly for sellers navigating higher living costs and tighter borrowing conditions for investors post-budget.
Zac says the property tax changes have unsettled confidence nationally, prompting many sellers to take a more cautious and cost-conscious approach to listing expenses.
“We’re seeing a clear shift in seller behaviour, with more vendors looking for lower-cost ways to transact,” he says.
“Off-market selling is becoming a first step rather than a last resort.”
He says the budget shock has created a rare moment of recalibration across the market. “
“We haven’t seen this level of uncertainty in decades, and it’s forcing both buyers and sellers to rethink how they transact,” Zac says.
“When confidence softens, people naturally gravitate toward simpler, safer pathways that reduce risk and give them faster feedback.”
National auction data reflects the shift, with several capitals recording their weakest clearance rates of the year as investors reassess borrowing capacity and delay decisions, he says.
“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,” Zac says.
“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.”
In regional Victoria, Bendigo-based sales agent Chevez Evans from PH Property says the trend is clearly visible on the ground, with sellers increasingly prioritising cost savings.
“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,” he says.
“By going off-market first, vendors can save $3,000 to $4,000 straight away in our region.”
Chevez says those savings are particularly meaningful for downsizers, first-time sellers and households feeling cost-of-living pressures.
“Four grand is a lot of money for someone. If you can have more money in your pocket, it’s a win-win,” he says.
He says there is strong competition in Bendigo’s $400,000 to $700,000 bracket, but the appeal of off-market selling now spans all demographics, which is a sentiment echoed by agents in multiple states.
In Melbourne, agents are reporting similar patterns, with rising caution among sellers and increased interest in off-market strategies as a way to manage costs and market uncertainty.
Harcourts Rata & Co sales agent George Ioannou says the financial pressures on investors are making off-market campaigns an increasingly attractive first step.
“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,” George says.
“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.”
He says the savings from off-marketing listings in Melbourne can be substantial.
“In Melbourne, vendors can be looking at $5,500 to $7,500 in marketing costs,” he says.
“Going off-market first lets them avoid that upfront hit.”
George says the model also appeals to investors because it creates a more transparent and numbers-driven process.
“For investors, off-market sales become more of a mathematical transaction,” he says.
“There’s a single asking price, they can run their returns, and there’s no smoke and mirrors.”
He believes the shift is becoming structural rather than temporary.
“Off-market should be the first approach to selling a property before going lives because it lets vendors test the waters without big financial outlays,” George says.
PropApp is currently hosting hundreds of off-market opportunities nationally each week, representing billions of dollars in property value already this year.
Zac says the platform’s growth in off-market listings reflects a broader shift in how property buyers and sellers want to transact.
“The shift toward off-market isn’t a blip – it’s becoming part of how buyers and sellers prefer to transact,” he says.
“Early access to opportunities gives them a clearer read on the market and a faster path to a decision.”
He says the rise of off-market activity is also reshaping the competitive landscape.
“Buyers and sellers are looking beyond the traditional portals and that shift is happening faster than many expected,” Zac says.
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