Four Essential Tips for Upsizers in Melbourne’s West as 2026 Begins
If you thought 2025 was a strong year for property prices, the data tells a more nuanced story.
According to leading industry researcher Cotality, national property values rose 8.6% in 2025. While that sounds significant, it ranked only 11th among the strongest growth years on record. With some analysts forecasting double-digit growth in 2026, upsizers in Melbourne’s West may face another competitive year.
Here’s what that means for homeowners considering moving to a larger home in suburbs like Taylors Lakes, Hillside, Keilor Downs and surrounding areas.
What Happened in the 2025 Property Market?
National property values increased 8.6%
Nearly 561,000 homes were sold (up 4.9% year-on-year)
The average property sold in 27 days
Listings were down 15.8% compared to 2024
Total residential property value passed $12 trillion nationally
Despite some seasonal flat periods in Sydney and Melbourne, supply remains tight and buyer demand remains resilient.
Importantly, market performance was driven less by interest rates and more by structural factors such as immigration, credit access and housing supply.
For upsizers, this matters.
What Does This Mean for Upsizers in 2026?
If you're considering upsizing (moving from a smaller home into a larger one) timing and strategy matter more than ever.
Below are four essential considerations.
1. Don’t Overreact to Short-Term Flat Periods
Seasonal slowdowns, especially over Christmas and early January, are normal.
A “flat” market does not mean falling prices. In tight supply conditions, stable periods often precede renewed growth.
If you can secure your next home during a quieter window, you may avoid the next quarterly price increase.
2. Understand the Upsizing Gap
One of the biggest misconceptions upsizers make is focusing only on the sale price of their current home.
What matters is the gap between your current property and your target property.
For example:
Current home value: $800,000
Target upsized home: $1.2 million
Market growth at 8.6% adds:
$68,000 to your current home
$103,000 to your next home
The longer you wait, the wider that gap can become.
In a rising market, upsizing often becomes more expensive over time even if your own home increases in value.
3. Consider Buying Before Selling (If Financially Possible)
With listings currently down compared to historical averages, finding the right larger home can be harder than selling a smaller one.
In markets where homes are selling in under a month, well-presented properties (especially entry-level homes) remain highly competitive.
If your financial structure allows it, buying first can reduce the pressure of having to compromise on your next home.
This strategy requires planning and professional guidance, but in tight markets it can provide flexibility and negotiation strength.
4. Recognise Your Position of Strength
Most upsizers are selling smaller homes.
That means you may be selling into the most competitive segment of the market particularly where first-home buyers and investors are active.
Government schemes, investor demand and limited supply can push strong competition at this level.
A well-strategised campaign can help you:
Achieve a premium sale price
Negotiate favourable settlement terms
Align your sale timing with your purchase
Final Thought for Upsizers in Melbourne’s West
Upsizing in 2026 is not just about price growth, it’s about strategy.
With constrained supply, strong buyer competition and structural demand drivers still active, careful planning matters more than ever.
Whether you are in Taylors Lakes, Hillside, Keilor Downs or surrounding suburbs, understanding your position in the market, and the real cost of waiting, can make a significant difference to your outcome.