Confident top end drives positive Boroondara sentiment

In the run up to the end of another busy year, solid selling conditions, gently rising prices and sustained buyer demand have defined the Boroondara property market in 2023.

What’s happening in our markets right now?

According to the PropTrack Home Price Index, October was the busiest month for auctions so far this year. A reliable barometer of market sentiment, the REIV reported a September clearance rate of 73% for Victoria.

Corelogic's daily home value index suggests Melbourne house prices rose 0.5% in October after rising 0.4% in September 2023. These price rises have occurred despite an increase in the number of properties hitting the market this spring and 13 interest rate rises since May 2022.

Sustained demand in Boroondara

Locally, Boroondara prices continue to reflect ongoing demand for the lifestyle and amenity on offer. According to the REIV, the median price for a house in Boroondara hit $2,517,500 in the September quarter. Clearance rates in Hawthorn (85.7%) and Kew (82.4%) reflect sustained competition for property across our sought-after municipality. Reflecting rising vendor confidence, Boroondara recorded the second highest number of auctions for October, with 221 auctions.

In signs of emerging stability in Melbourne’s rental markets, the REIV reports that the proportion of vacant properties stayed at 2.4 per cent for metro Melbourne across October. The median weekly rent for houses in metropolitan Melbourne has remained at $550 for three consecutive months.

Confident top end drives broader sentiment

The top end of the Boroondara market continues to experience sustained demand according to Jellis Craig Hawthorn’s Mike Beardsley.

“Appetite for quality family homes in Boroondara remains high,” Mike says. “We’re seeing continued demand from local families upsizing as well as returning expats and international buyers.”

“A lack of choice for buyers, particularly in terms of well-located renovated family homes, is underpinning some very good results.”

Mike and his team recently sold 22 Chaucer Crescent, Canterbury. The 5 bedroom 4 bathroom home, nestled within 3015sqm (approx) of beautiful botanic gardens sold for $9.8 million and was purchased by a local family who were upsizing within the area they know and love.

Economic factors impacting local markets

Population growth, tight rental markets and low rates of unemployment have underpinned national and local property markets, even as interest rates have increased by 4 percentage points since May last year.

Many of these current factors driving demand for housing are forecast to continue into next year. Meanwhile, comparably fewer properties for sale is helping protect the market from further downward pressure. Inflation and interest rates look likely to have peaked, pointing to increased consumer confidence moving forward.

Looking ahead to 2024

The Commonwealth Bank’s head of Australian economics Gareth Aird predicts Melbourne property prices will rise by 5% in 2024, while the National Australia Bank’s chief economist Alan Oster expects Melbourne house prices to rise by 5.5%. Westpac is forecasting a national house price rise of 4% in 2024 and 3% in Melbourne.

According to RateCity, Australia’s Big 4 banks are all forecasting interest rate cuts towards the end of 2024, which should deliver increased buyer confidence.

Capitalising on current conditions

Solid selling conditions throughout the latter part of 2023 have delivered successful outcomes for Boroondara vendors. If you are considering a Q1 or Q2 sale in 2024, right now is the time to start planning and preparing. Your local Jellis Craig team can support you with astute market insights and a tailored strategy to achieve an outstanding outcome on your property.

Jellis Craig Boroondara sells more properties in Boroondara than any other local agency. If you are planning a property move or would like to discuss the value of your home in the current market, reach out to our experienced team at Jellis Craig Boroondara.