We sat down with our Moonee Valley and Kensington directors to explore how the past year has unfolded and what lies ahead for the local property market.
How has the local market performed in the last 12 months?
The past 12 months have been challenging but predictable. In our market, supply is the real story. When stock levels rise, buyers grow selective. When supply is tight, consistent underlying demand for quality homes in established suburbs drives strong results. For rental providers, the outlook remains positive, with tight vacancy rates, robust demand, and strong rental yields.
Essendon and Moonee Ponds remain exceptionally well-placed, underpinned by excellent schooling options, lifestyle appeal, transport infrastructure and proximity to the CBD.
Which suburbs in the region look best placed for stability?
Essendon and Moonee Ponds remain exceptionally well-placed, underpinned by excellent schooling options, lifestyle appeal, transport infrastructure and proximity to the CBD. Airport West and Avondale Heights will continue to perform well off the back of relative affordability compared to neighbouring blue-chip suburbs.
How do you expect your region to respond to potential cash rate adjustments?
Households in prestige areas of Moonee Valley are better placed than most to absorb additional rate pressure. Firsthome and entry-level buyers remain more sensitive to borrowing capacity changes and cost-of-living pressures.
Median property prices
Source: Cotality, 01/04/2025 - 31/03/2026 Where a suburb is split across a LGA, the whole suburb has been used to determine a median. Where there are insufficient sales within a suburb over a 12-month period, a median price has not been calculated.City of Melbourne
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Carlton
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Docklands
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East Melbourne
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Kensington
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Melbourne
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North Melbourne
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Parkville
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Prahran
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South Yarra
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Southbank
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West Melbourne
Median days on market
Source: Cotality, 01/04/2025 - 31/03/2026City of Melbourne
Rental yield
Source: Cotality, 01/04/2025 - 31/03/2026City of Melbourne
Current population
ABS Census 2021 DataCity of Melbourne
- Houses
- Units
Essendon is seeing strong quarterly house price growth at 6.2%¹. What factors are contributing to this?
Essendon has historically proven resilient. Despite some oversupply, premium homes are transacting robustly, with turnkey properties attracting particularly brisk demand from local families seeking certainty and convenience.
Metropolitan Melbourne’s vacancy rate is sitting at 1.6%². Kensington is significantly tighter at 1.0%². What does this high rental demand mean for investors?
Kensington’s proximity to the CBD, excellent transport, village atmosphere and lifestyle appeal drives exceptionally strong rental demand. Vacancy rates this tight signal genuine opportunity as quality investment properties in this precinct present compelling long-term fundamentals.
Ownership
ABS Census 2021 DataMelbourne
- Own
- 14%
- Purchasing
- 16%
- Rent
- 67%
- Other
- 3%
Moonee Valley
- Own
- 34%
- Purchasing
- 31%
- Rent
- 32%
- Other
- 3%
- Own
- Purchasing
- Rent
- Other
Dwelling type
ABS Census 2021 DataMelbourne
- House
- 2%
- Semi detached
- 12%
- Unit / apartment
- 86%
Moonee Valley
- House
- 56%
- Semi detached
- 21%
- Unit / apartment
- 23%
- House
- Semi detached
- Unit / apartment
What does FY27 and beyond look like for your market?
Major short-term price spikes seem unlikely, with ongoing Victorian taxes and regulatory reforms continuing to weigh on sentiment. That said, Melbourne represents meaningful long-term value – a period of underperformance may well create opportunity as confidence returns. Recent Federal Budget changes around negative gearing could renew investor interest in new property, placing upward pressure on land values. Ultimately, stock levels remain the key: when supply stays balanced, Moonee Valley sees consistently strong results.
Fast Five with Christian Lonzi
Favourite street
Kalimna Street, Essendon, in the heart of the prestigious Windy Hill precinct.
Local secrets
Moonee Valley Wine Bar for a drink; House of Fides for dinner.
Memorable sale
106 Eglinton Street, Moonee Ponds, sold in three weeks for more than $8 million – a testament to strategic management and strong competition in the luxury market.
Design focus
Wellness-focused spaces such as home gyms, infrared saunas, cold plunge pools and ice baths.
One to watch
Kensington’s location and lifestyle appeal make it one of the more compelling inner-
