The Boroondara real estate market was a mixed bag leading into winter, proving difficult to predict. Leading into late May and June, it became clearer as the shortage of quality stock dictated the market. This translated to premium homes in the better areas moving up in value, showing very strong results. Overall, the median house price only dropped 3.1%, compared to an average of 12% across Melbourne over a 12-month rolling period vs the peak of 2021. Clearance rates hovered between 60-70% across the market, but the premium areas in Boroondara saw a rate closer to 90%.
Throughout Boroondara there were examples of properties, from knock downs to fully renovated homes, that performed well despite the wider financial instability. As usual, the strongest results originated from turnkey homes with very little to spend. Given the significantly increased labour timelines and building costs, buyers were eager to compete hard and pay more for a home requiring no work. However, due to the short supply of homes on the market, even unrenovated properties and land propositions in good streets made a firm play this last quarter of the financial year.
For those buyers willing to wait 2-3 years for the building issues to subside, solid buying opportunities and strong potential for growth in land value were there for homes that require work but are liveable.
As we edge out of this quarter and approach the school holidays and July break, volume has significantly dropped, resulting in strong sales at auction or before.
- Inner Areas
- Outer Areas
This area continues to be overall a balanced market, with the exception of the premium stock which was very much a sellers market. As an influx of ex pats and internationals moved into Boroondara post covid, primarily to be close to the array of Private Schools in the vicinity, this market showed buoyancy. Mike Beardsley from Jellis Craig said, “The high-end market (over $3m) in Boroondara remained exceptionally strong. Buyers at this level are less sensitive to interest rate rises as they tend to have more equity behind them vs a buyer with a budget of $1-$2m”.
Some sales highlights in this area included a property in an A-grade street needing some updating, 38 Chrystobel Crescent, which sold for close to $8k per square metre via private sale. A 5 bedroom 2 bathroom 3 carpark modern home on a breathtaking 1,390sqm block backing onto a golf course, 111 Ashburn Grove in Ashburton also featured spectacular poolside entertaining areas and large leafy gardens. I handled the vendor advocacy, with Mike Beardsley from Jellis Craig managing the sale. With a reserve of $3.5m, the auction was strong with 4 bidders, selling for close to $3.9m. Bought for land, 20 Leura Grove in Hawthorn East, a 4 bedroom 1960s home with very wide frontage in a good street presented a strong land value sale. It sold via private sale for over $5k per square metre at $3.9m. Another notable sale was at 44 Harts Parade, Hawthorne East. A luxurious 4 bed 2 bath 1 carpark double fronted brick c1895 Victorian residence on a 550sqm block with a pool. An agent quote of $3.1m-$3.4m and a reserve of $3.5m brought five bidders who competed prior to auction, selling for a huge $4.1m, topping even the best result at the peak of the market 15 months ago. Four art deco apartments with no heritage at 5 View Street, Hawthorn, were purchased to demolish and rebuild. Sold off market for $4.12m, representing close to $5.8k per square metre. A stunning 4 bedroom 3 bathroom 2 garage renovated home in a superb location at 21 Bryson St, Canterbury, had expansive indoor-outdoor entertainment areas, a pool, and spacious open plan living. This home was secured prior to auction for $4.6m with strong competition.
The outer area of Boroondara was balanced with a lean more toward the buyers this quarter. Damian Kane from Fletchers Real Estate said, “The market in North Balwyn, Mont Albert, Surrey Hills held up well due to a lack of stock and strong demand from buyers for quality homes in great locations”. This area, prone to mortgages and lower price points, is more affected by the wider conditions than the inner area.
With a reserve of $2.6m, 2/32 Severn Street, Balwyn North, sold at auction with 4 bidders for $2.765m. A house for knockdown, 31 Staughton Road in Glen Iris was a unique property, given it had three street frontages. Against a quote of $2.2m-$2.4m with 4 bidders for land to build 2 properties, it sold for $2.9m. On a lovely heritage street, a 5 bedroom 3 bathroom home in great condition at 14 Walbundry Avenue, North Balwyn had a reserve of $3.05m and three bidders, going under the hammer for $3.25m.
Earlier this year, the whole of Boroondara was a buyers’ market. With the premium homes presenting a vendors market due to a lack of choice and replacement costs this quarter, it shifted to a balanced market. Under this ever-changing financial climate, it is expected to change as we shift into the spring period. Buyer sentiment appears to be favouring a break in July, then returning August/September. The general consensus seems to be that the market is inflated due to an imbalance in supply and demand, pushing values up. It is predicted that stock levels will rise in the coming months, creating a very different market landscape by September/October.
Get in touch with Tim to find out more about the Boroondara and Stonnington markets, or make an appointment to discuss your requirements and see how we can help you get into your ideal home sooner.Read more about Tim Picken
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