Banyule and Nillumbik continue to exceed the expectations of industry experts and outperform the Melbourne market. Transaction numbers across the core suburbs our office group services have remained steady at around 3,300 annually for the past two years. However, a noteworthy uplift in available properties in the last six months has created a more balanced market compared to last year, where buyer demand significantly outpaced supply.

Overall, the broader Banyule and Nillumbik markets haven't been significantly impacted by rising interest rates. While an effect is present, it hasn't been as negative as initially anticipated. First-home buyers, typically with higher loan-to-value ratios, have seen reduced budgets, but this has often been offset by parental support.

Renovated and turnkey homes have been highly sought after, alongside lifestyle and small acreage properties offering families space and the flexibility for remote work set-ups. Quality properties in prime locations in this region have always been tightly held, and this trend has continued. High-end properties have benefitted significantly from this low supply, attracting a pool of active buyers – many of whom are less impacted by interest rate hikes than buyers in other sectors of the market.

The construction industry is facing its own set of challenges. High building costs, coupled with a shortage of skilled workers and frustrating delays in the planning process, have discouraged some buyers, particularly those considering major renovations or new builds. This trend has further fuelled the demand for movein-ready options, including renovated and newly built properties, while also significantly reducing the volume of townhouses, apartments and large-scale projects coming onto the market.

The North East rental market has experienced a compelling year. Property managers have had multiple applications for most listings due to a shortage of options for renters. At the same time, residential property providers have exited the market, citing increased holding costs, rising incidental expenses and stricter compliance laws.