Thirteen consecutive interest rate hikes in the 18 months to November 2023, coupled with a general sense of economic uncertainty, dampened buyer confidence and borrowing capacity, subduing market activity in the first half of last year. We saw listings remain lower than usual as some potential sellers opted to wait on the sidelines and assess the changing market conditions. However, the moderation of rate increases towards the end of last year has fostered a more stable purchasing environment and encouraged buyers to re-enter the market with renewed enthusiasm.

Properties situated in coveted school catchment zones, particularly those close to high-performing institutions such as Glen Waverley Secondary College and Highvale Secondary College, continue to outperform. Proximity to essential amenities, including shopping centres, transport hubs, and healthcare facilities, also remains a significant advantage. 

Buyers are increasingly valuing forward-thinking design, particularly in terms of study spaces. With many buyers still working from home, multiple home offices are highly sought after, as are properties boasting multiple living zones that can serve a variety of purposes.

The fragility of the construction sector, characterised by escalating building costs and the liquidation of a number of key builders, has undeniably impacted buyer behaviour. Families seeking stability are increasingly prioritising move-inready options, with newly constructed, renovated and turnkey homes attracting significant interest. This preference has been reflected in auction results, with such properties often drawing multiple bidders, enabling those vendors to maximise the sale price of their homes.