In Focus

Buoyant autumn market predicted for in-demand Boroondara.

Boroondara Blog Sales0424
Steven Abbott

Steven Abbott - Managing Director & Auctioneer

April 2024

Demand for well-located property persists across Melbourne, yet the number of properties offered for sale remains lower than usual. This demand fueled a buoyant March quarter for Boroondara, particularly at the top end of the market. We had twice the number of transactions taking place than the same time last year, and importantly, we’ve had multiple buyers bidding at auctions and making offers. We’re now poised for a busy market across the remainder of autumn.

Boroondara continues to outperform.

As buyers return their focus to capital cities, the median price of houses and units in metropolitan Melbourne has stabilised. According to the Real Estate Institute of Victoria (REIV), Melbourne’s median property price was $909,000 for houses and $632,500 for units in December 2023. Meanwhile, Boroondara’s median house price was $2.5 million (the most premium median house price in Victoria) and the median price for units was $727,500.

Median house prices surged in several Boroondara suburbs as last year drew to a close, with Hawthorn gaining 13.5% and Kew East 6.5%. Annually, Balwyn rose 8.5%, Hawthorn East 7.7%, Surrey Hills 7.9%, while Camberwell gained 10.2%.

The March 2024 quarter produced several highlights across the board. The overall success rate of auction campaigns for family homes has been strong, generally over 70 per cent, an impressive result given listing volumes increased 30% year on year. These public auctions are creating open, transparent, and highly competitive platforms for the market to transact.

New opportunities for growing families

As building costs stabilise, our team is seeing renewed interest in vacant land and homes with untapped renovation potential, particularly heritage homes. Families are seeking relatively affordable opportunities to enter the Boroondara market, where decades of price growth is underpinned by the enduring appeal of leading schools, charming streetscapes, leafy parkland plus excellent shopping and transport .

Apartment and unit opportunities – Investors/first home buyers.

Our broad mid-market offers choice, and therefore opportunity, for buyers. Buyers in this price range – including both investors and first home buyers – remain cautious and value-conscious, however the stabilising interest rate environment is resulting in consistent sales results, especially with an increased number of new buyers entering the market.

Many first home buyers considering units and apartments are favouring turnkey properties requiring no renovation or update. A rising supply of apartments means vendors need to consider sensible pricing strategies and excellent property presentation in order to engage a strong pool of buyers.

Tide turns on interest rates

Buyers have been resilient in the face of a number of economic factors circulating in the media, including rising property taxes and potential mortgagee stress.

In March, the RBA decided to leave interest rates on hold for the third time, boosting buyer confidence across all property types.

With inflation stabilising, there is cautious speculation of an RBA rate cut later this year. We’ve had 13 interest rises since May 2022, with Boroondara house values holding steady throughout . Inflation is easing, yet the median dwelling price in Australia’s capital cities continues to rise, with a 1.5% increase in the March quarter. The property market remains resilient despite cost-of-living pressures.

Renewed optimism

Once uncertainly around interest rates is lifted, we expect to see a spike in market activity. As buyers are inspired to take action, more vendors will do the same. Many vendors wanting to upgrade or right-size have been waiting for more buying opportunities to become available before listing their own properties for sale, so we expect to see this uptick in market activity have a cumulative effect as the year progresses. Boroondara already had the third highest number of auction sales across the state in 2023, achieving a very solid 76.7% clearance rate.

Outstanding results for the Jellis Craig team

In the 12 months to February 2024, Jellis Craig assisted more Boroondara vendors and purchasers than any other agency. This performance is a direct result of our strong connections within our local community, combined with our unmatched service, market acumen and expertise.

If you're considering buying, selling or leasing in 2024, we welcome the opportunity to be of assistance.

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