The past year has delivered no shortage of market movement across Moonee Valley and Kensington. First-home buyers were dominant early in the year, but momentum has since swung back to investors – including from interstate – who recognise Melbourne as a value market in the national context.
The February and May rate cuts lifted buyer confidence, energising the market. While rate reductions help ease cost-of-living pressures, their psychological impact is just as powerful. That said, history shows many sellers wait too long, only to compete with a wave of new listings when cuts land. Those who list early tend to be best placed.
Supply and demand dynamics remain tightly tied to property type. Premium homes command strong prices, with buyers eager for turnkey convenience and lifestyle appeal. Knockdown sites are also faring well, snapped up by developers building homes that meet today’s expectations, including butler’s pantries, luxurious primary suites and pools. Older, unrenovated homes hold value but are rarely achieving significant premiums.
The rental market remains under pressure, with persistently low vacancy rates. However, investor-grade stock that lagged earlier in the year is now regaining ground, buoyed by improving yields and confidence in long-term capital growth.
Developers are shifting focus towards single-dwelling builds, tapping into demand for custom homes and leveraging faster permit approvals.
Adding to market momentum is a wave of infrastructure investment across the region. The Metro Tunnel – opening this year – will bring faster services and new stations at South Kensington and Arden. Further ahead, the $50 billion Suburban Rail Loop will eventually link the Inner North with Melbourne Airport via underground stops.
Meanwhile, the local skyline is being transformed by bold developments, from Flemington Racecourse’s landmark Archer building to Moonee Valley Racing Club’s boutique hotel and rooftop bar. The Victorian Government has finalised the Niddrie (Keilor Road) and North Essendon Activity Centre Plans, unlocking new housing potential through rezoning.
