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
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 PickenGet 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.
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