Boroondara - Summer 2024 Market Update

As predicted, the Boroondara real estate market finished strongly with increasing stock levels, solid sales results, and sustained buyer demand leading into the summer break. Market sentiment was resoundingly high as October peaked as the busiest month of the year for auctions. Regardless of 13 interest rate rises since May 2022, prices continued to rise gently this quarter, with the house median reaching $2.5175m. As Campbell Ward from Jellis Craig said, “2023 saw resilience in the real estate market despite changes to interest rates. With a shortage of properties for sale our auction clearance rates regularly hovered between 75-85% each weekend”.

While the scarcity factor upheld the healthy appetite for prestige properties, garnering strong results from upsizers, returning expats and international buyers, listings increased in other sectors. As many owners strived to take full advantage of the optimum selling conditions experienced throughout the year, Duane Wolowiec from Marshall White made the observation that well situated, renovated, period family homes fared particularly well, “We witnessed some very competitive buyer competition particularly with those homes that were fully renovated or newly built with no work or at least minimal work required”.

In summary, Tom Staughton had this to add, “Overall Boroondarra ended the year with a strong finish, with the $3m-7m market seeing some notable sales. This finish was largely attributed to many families eager to secure a home nearby to one of our many leading schools in anticipation for the upcoming school year”.

Population growth, a tight rental market and low unemployment drove the national and local property markets throughout 2023. We expect these factors to continue their impact certain sectors into the new year. Buyer sentiment is set to soften as interest rates not only look likely to have peaked, but are forecast by Australia’s Big 4 banks to be cut towards the end of next year. Property prices will continue to rise, with Campbell Ward from Jellis Craig adding, “Demand from buyers outstripped supply this quarter. Property values within Boroondara have remained strong and the outlook for 2024 is positive”.

As we closed out 2023, Duane Wolowiec from Marshall While offered these words, “Nearing the end of this quarter it became clear that a number of buyers had grown tired of looking and were prepared to wait for new opportunities at the start of 2024. A term that was used a lot by many was that “buyer fatigue” had set in. It was time for a break. We are excited with what the new year brings and feel the market should be relatively balanced in 2024”.