● Selling in a Rising Rate Market

What is happening to house prices in Officer and Pakenham in 2026?

Prices in Officer and Pakenham are under renewed pressure in 2026, with two recent RBA rate rises tightening buyer borrowing capacity. While well-presented homes priced to current market conditions are still selling, properties still priced at 2024 levels are not.

Current price ranges

As of 2026, 4-bedroom homes in Officer are currently ranging from $660,000 to $760,000, while in Pakenham, the same property type is seeing prices between $590,000 and $660,000. Both ranges are softer at the top end compared to 12 months ago.

Why are build costs so high?

Building a standard 4-bedroom home in Melbourne’s South East now costs between $380,000 and $430,000 before land – a significant increase from under $280,000 in 2019. This is due to global supply chain issues, increased trade labour costs, and the collapse of several mid-tier builders.

How long will it take to sell?

For a well-priced and well-presented property, you can expect a campaign to run for 30 to 45 days. Properties in the $550,000 to $720,000 range are seeing the deepest buyer pool, selling in 30 to 40 days, while those above $850,000 are taking 55 to 70 days.

The honest reality

Homes that launch above the current buyer pool develop market stigma fast. Buyers assume something is wrong with a property that has been sitting. That assumption costs you more than a correct price from day one ever would.

Questions to consider

  • What is the current buyer appetite for properties in my specific Officer or Pakenham precinct?
  • How does my property’s presentation compare to others currently on the market?
  • What is the realistic after-tax cash flow if I am considering an investment property in the current rate environment?

Talk to KR Peters for a straight-talking appraisal with no obligation.
krpeters.com.au

Market information is general in nature and reflects conditions
at the time of publication. For advice specific to your property,
contact KR Peters.

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