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 Maroondah.
Over the past 12 months we have seen the emergence of a two-paced market. Investment and development property has seen a significant fall in demand as interest rate rises and building cost increases take a toll on buyer confidence. On the flip side, new and recently renovated homes of all sizes have experienced a significant upswing in momentum, with buyer demand outstripping supply.
With building costs ballooning by an estimated 30% to 40% over the past 12 to 18 months, there has been a marked slowdown in low- and mid-tier development. Activity centre projects continue to move ahead, with higher-density apartment developments continuing to tick along due to proximity to transport and retail precincts. A shift towards completed or fully refurbished homes and shyness around land sales and demolition sites is evident, with the smart buyer happy to pay a premium for turnkey and renovated properties.
We’ve seen rents increase substantially across most of our portfolio. Demand remains high for rental properties, causing record low vacancy rates for months on end. The dual impact of increasing migration and the return of overseas students is likely to continue to place pressure on rental prices.
With Victoria expected to receive significant population growth over the next five years, we anticipate a surge in demand across Maroondah. As a municipality that has historically had a median house price in line with, or slightly above, the Melbourne median, Maroondah remains an affordable option for many families. Add to this the quality of schools, transport and recreational facilities, and it is easy to see why our suburbs are so popular.
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 Maroondah 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 property journey.