Sought-after Boroondara holds steady
Steven Abbott - Managing Director & Auctioneer
March 2023Boroondara’s property market has experienced a more balanced start to the year. As we approach the end of the first quarter of 2023, there are early signs of cautious optimism returning to Melbourne property.
To date, this year’s market has been characterised by a shift in expectations. Buyers and vendors alike understand the impact of economic factors on real estate – including inflation and interest rate rises – and are approaching the market with a fresh perspective.
While sales volumes have been lower so far this year, auction clearance rates have held up. According to Domain data, February saw capital city clearance rates jump to a twelve-month high. In mid-March, the Victorian market clearance rate was sitting at 72%. By contrast, Boroondara’s clearance rate at the same point was 88%, reflecting the higher demand for properties in our sought-after suburbs. At a micro level, the latest REIV data reveals Camberwell as at top performer, achieving a 92.9% auction clearance rate in December.
Here at Jellis Craig Boroondara, we are seeing good numbers at open for inspections and auctions. As a premium, established locality, there is always strong demand for Boroondara property.
Renovated properties attract enquiry
Renovated or recently updated homes are currently experiencing very good levels of interest and enquiry across all three of our local offices: Jellis Craig Hawthorn, Glen Iris and Balwyn. With local and global factors impacting the cost of renovations, properties that are ready to move into are activating elevated buyer interest.
Renovated family homes across Boroondara continue to attract strong interest from local buyers and those from outside the area (including international buyers). Whether they are upsizing or downsizing, buyers see value in Boroondara’s blue ribbon amenity, schools, shopping precincts and transport links.
Apartments and units that have been updated or improved are attracting more interest than ‘fixer uppers’ in this property class. As well as accurate pricing, property presentation is a critical factor driving successful campaigns. We encourage vendors of apartments and units to consider presentation and styling, and we can help you position your property to appeal to buyers.
Whether you own a freestanding property or an apartment, if you are considering a sale this year, now is the time to start planning. Consulting with your sales agent is vital. We can suggest minor property updates to ensure you can engage the widest possible pool of buyers. Ask for examples of other similar properties that have sold well to help inform the campaign strategy.
Rental market tightening
Victoria’s rental vacancy rate fell to 2.3 per cent in January, while the vacancy rate across metropolitan Melbourne went down to 2.4 per cent over the month.
Boroondara’s rental market has also tightened. Many university students have returned to on-campus learning, while international students are arriving back in Melbourne. This is one of the many factors that have contributed to lower vacancy rates in Boroondara, as demand for rentals properties returns almost to pre-COVID levels.
Jellis Craig Boroondara continues to lead the market having sold more properties in the first three months of 2023 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.
