There is no doubt Melbourne’s property market has weathered significant challenges in recent years, from the economic fallout of the pandemic to record consecutive interest rate rises and a subsequent tightening of lending restrictions. However, the current landscape reflects a welcome return to stability, and the outlook is strong for the residential property market in Kensington and surrounds.
While interest rates have had an impact on market confidence, we continue to see strong demand for renovated family properties, established city-fringe warehouse conversions, period homes and low-maintenance investment properties. There has also been high interest from first homebuyers, particularly in the apartment space.
In the 12 months until June 2023, house median rental prices in Kensington increased by 5.3% to $600 per week1, with a rental yield of 2.5% in the March 2023 quarter. With projected increases in migration and the return of overseas students, rental stock shortages are likely to continue, generating increased competition among renters.
There has been a noticeable shift in the area towards sustainable developments prioritising eco-friendly materials and technologies. This trend is driven by a number of factors, including government regulations, rising energy costs and a growing public awareness of climate change. Mixed-use developments combining residential, commercial and retail components are also increasingly popular, driven by the desire to create more vibrant communities.
The combination of robust population growth and a pent-up demand caused by recent low stock levels, coupled with substantial investments in transport, healthcare and education infrastructure in the area, ensures the Kensington property market is poised for a bright future.
In this year’s edition of The Report, we uncover five pivotal factors driving current property trends, and Jellis Craig CEO Nick Dowling reveals what’s really going on in the Melbourne property market. We also shed light on the significant infrastructure improvements enhancing liveability in Kensington and examine how the market is shaping up in major cities around the globe.
We hope you find our 2023 edition of The Report enjoyable and informative. We look forward to sharing our expert advice and guidance to help you in the next phase of your proper ty journey.