Melbourne Inner North - Winter 2024 Market Update

Unraveling the Inner North: A Comprehensive Analysis

The real estate market is a dynamic ecosystem subject to various influences ranging from economic shifts to social trends. Among the bustling real estate landscapes, the Inner North stands out as a unique microcosm, characterized by its distinct charm, diverse communities, and coveted properties.

The LGAs of Moonee Valley and Merri-bek encompass a collection of vibrant neighbourhoods, each with its own identity and allure. From the trendy streets of Brunswick to the leafy suburbs of Moonee Ponds and Essendon, this region is synonymous with cultural richness and urban sophistication. Its proximity to the city center, coupled with an eclectic mix of cafes, boutiques, and green spaces, makes it a magnet for homebuyers and investors alike.

This quarter brought a flurry of activity, driven by a combination of factors. The market remained resilient, with a steady influx of buyers including first-time homeowners, upgraders and investors. Despite ongoing development projects, including high-density apartment complexes and townhouse developments, the market in Moonee Valley and Merri-bek grappled with a perennial issue: the imbalance between quality home supply and robust demand. This imbalance exerted upward pressure on prices and intensified competition among buyers. Sarah Johnson from InnerCity Realty added, “The last quarter was characterized by unprecedented demand, particularly in suburbs like Fitzroy and Brunswick. Buyers were drawn to the unique charm and lifestyle offerings of these areas, driving competition and pushing prices upwards.”

One of the defining features of the market in Moonee Valley and Merri-bek in the last quarter was the steadiness of prices. Across various segments, from apartments to detached houses, prices experienced steady yet minimal growth. In particular, suburbs like Brunswick, Coburg, Moonee Ponds, and Essendon, recorded notable price appreciation. The allure of heritage properties and period homes has long captivated buyers, and with the realignment of building costs to a more realistic level, renovation and restoration projects surged. Coupled with close proximity to amenities and public transport, buyers were attracted to the lifestyle and investment opportunities. However, this surge in prices posed challenges for affordability, especially for first-time buyers and low-to-middle-income households.

Amidst the ongoing evolution of the real estate market in Moonee Valley and Merri-bek, several notable trends have emerged over time. In an increasingly interconnected world, the market has grown more reliant on digital platforms, with virtual tours, online auctions, and digital marketing becoming more commonplace. This shift was never more evident than during the pandemic, which prompted a mass reassessment of lifestyle priorities that still remain important today amongst residents still prioritizing spacious homes, outdoor areas, and proximity to nature. The resultant change towards remote work and flexible lifestyles further escalated demand for properties with ample space, natural light, and outdoor amenities. As such, dwellings offering these features, such as terrace houses and renovated warehouses, commanded premium prices and attracted strong interest from buyers seeking lifestyle upgrades. Suburbs like Moonee Ponds and Essendon, with their leafy streets and parklands, continued to offer the perfect balance between urban convenience and suburban tranquillity.

Environmental consciousness pervaded the real estate landscape, with an emphasis on sustainable design, energy efficiency, and eco-friendly features. Properties equipped with solar panels, rainwater harvesting systems, and green spaces garnered attention from environmentally-conscious buyers seeking to minimize their carbon footprint.

David Wong, Senior Sales Consultant at Urban Living Real Estate, provided insights into the rental market dynamics and emerging trends. “The rental market in the Inner North remained resilient, with steady demand from tenants seeking quality accommodation,” remarked Wong. “Suburbs like Brunswick West and Ascot Vale offer a diverse range of rental options, from apartments to family homes, catering to a wide demographic.”

This region’s real estate market is successfully transversing the current complexities of the buyer pool, as Michael Chen from Northside Properties stated, “The Inner North continues to attract a diverse range of buyers, from young professionals to downsizers seeking a cosmopolitan lifestyle. As Chen noted, “Suburbs like Moonee Ponds and Essendon offer a mix of trendy cafes, cultural attractions and green spaces, making them highly sought after”.

Looking Ahead

The Inner north market is still very much lacking a sufficient amount of quality renovated home being offered to the market place. We continually have see over the last 6 months, quality home still being hotly contested for. Buyers are now realising that there is some stability coming back to the market and are willing to compete without going to “crazy”. We should see a balanced market for the next 6 months subject to availability of quality stock. If we continue to see a lack to said stock then the market might go on another upward run due to less availability and buyer frustration increasing. This could turn a balanced market to a sellers market across all sectors due to lack of quality supply. Interesting Spring market ahead! Our advice is if you are ready to act then do so now.