Anderson St, Yarraville

Melbourne Inner West / North - Winter 2024 Market Update

Anderson St, Yarraville
Jun 28, 2024

With a mix of growth and stabilisation, Inner West / North Melbourne’s recovery trend throughout the first quarter of 2024 presented a promising outlook for the residential property market. Auction clearance rates were relatively strong, reflecting healthy buyer interest. Properties spent a moderate amount of time on the market before being sold, indicating a balanced market with steady activity. The rental market was particularly strong, driven by significant immigration and increased demand for rental properties leading to low vacancy rates and higher rental yields. While turnkey renovated family homes continued to fare well, as they do in most market conditions.

Indicative of the days on market, 21 Cedar Drive in Maribyrnong, a 4 bedroom 3 bathroom family home situated in a premier tree-lined street, was first listed mid-February with a price guide of $1.35m to $1.45m, selling at auction for $1.38m after 25 days on market.

Renovated and extended into a spacious 3 bedroom 2 bathroom family home, 60 Fehon Street in Yarraville featured indoor/outdoor living in a highly sought-after inner-village location. First listed end of February for between $2m and $2.2m, it sold for $2.53m after 23 days on market.

The second quarter saw increased caution despite no further interest rates, as buyers kept their intentions and strategies closely guarded. Although many buyers attended property viewings, the turnout at auctions was lower than expected. This did not seem to negatively impact the outcomes, as many properties sold within their anticipated price ranges, while others sold through post auction negotiations.

Renovated properties performed well, as the high cost of renovations continued to affect buyer sentiment, making them reluctant to take on fixer-uppers. For those willing to invest in some work, this sector held excellent investment potential. While a growing number of investors were compelled to sell their properties, with the inherent losses through capital gains tax increases forcing their hand.

  • Hobson's Bay (Yarraville)
  • Maribyrnong

The Yarraville market has experienced a slight softening over the past quarter, as Elise Nemer from Jas Stephens Real Estate summarized, “Although properties still sold, it typically involved negotiating with a single buyer on auction day rather than selling under the hammer. Despite this, days on the market remained reasonable, and properties that didn’t sell at auction often found buyers within the following two weeks”. Low vacancy rates in the rental market influenced investors decision making, as a predominance of these properties were listed rather than upsized. This drove activity towards first home buyers, currently the most active market.

There was a noticeable increase in sales, with 47 townhouses/units/apartments sold in the first six months of 2024, in comparison with 31 sold within the same period in 2023. Their median price also increased from $658.25k to $832.5k, and auctions in general doubled in this same time period from 6 to 13. While it is clear it has been a fruitful period in Yarraville, it is difficult to draw too many conclusions or predictions from the statistics in such a small buying pool.

A notable sale within Yarraville was a beautifully renovated and extended Victorian home circa 1910 at 104 Anderson Street, masterfully renovated and extended to restore period features while creating an elegant modern family sanctuary. This 4 bedroom 2 bathroom property was first listed early March with the price guide of $1.65m to $1.75m, it was again listed early April, and sold for $1.79m after 30 days on market.

Maribyrnong lacked buyer confidence, and likely will until rates are cut. This has also been an ongoing factor affecting sellers, as more came to the market to lessen their financial burden, particularly owners of investment properties impacted by land tax increases and rate rises over the past year. “Three months ago the Maribyrnong market was more confident, with more buyers around looking at properties and making offers prior to auction. At the moment we have noticed a decline in buyers in the market place and buyer confidence is certainly not there”, reflected Amanda Basilone from Biggin Scott Real Estate. The first home market suffered a decline, family buyers upgrading remained buoyant, and the inner west townhouse sector provided opportune buying potential.

Sales were slightly down this past six months compared to this time last year, at 115 and 121 respectively. For the same period, median house price was also lower, down from $1.3625m in 2023 to $1.23m this year. While unit prices rose from $527k last year to $674k this year, and auctions rose from 21 to 30.

A standout sale within Maribyrnong was a 5 bedroom 3 bathroom 3 car garage luxury family home in a prestigious, highly desirable location at 3 Casuarina Close. On 564sqm, this spacious showpiece entertainers residence was first listed early April for between $1.55m and $1.65m, then again end of May, with a price guide between $1.55m and $1.65m. After 32 days on market, it sold by private treaty for $1.66m.

Looking Ahead

Looking ahead to the winter months, the Inner Melbourne West / North real estate market is poised for moderate growth. Though a significant amount of off market stock is coming through from agents, stock of available properties is still quite low, suggesting that the market may remain steady. Potential homebuyers should be aware that inventory levels of new listings are expected to remain modest. Given this anticipated scarcity, it is advisable to act swiftly if you come across a property that aligns with your criteria and budget.

Buyers and sellers alike should prepare for a balanced market environment as we move throughout the year. Going to auction will ultimately determine the true market value of the property, and as always it is crucial for buyers to conduct thorough due diligence to avoid overpaying for properties. Emotional attachment to a property often leads to inflated offers, so it’s important to stay objective during the purchasing process.

With some vendors hesitant to list their properties and potentially having unrealistic price expectations, agents will need to collaborate closely with them. Navigating pricing strategies effectively is essential to achieve the best possible outcomes for vendors.

Elise Nemer from Jas Stephens Real Estate wrapped up, “I anticipate the market will continue in its current state for the next six months, pending an interest rate cut or increased confidence from buyers and vendors. Earlier this year, we saw a surge in buyer confidence and market activity when interest rates stabilized. A similar stabilization could lead to another market uptick”.

Inner West / North Area Specialist
Kelly Eyes & Nuno Raimundo

Get in touch with Kelly to find out more about the Inner West/North market, or make an appointment to discuss your requirements and see how we can help you get into your ideal home sooner.

Read more about Kelly Eyes & Nuno Raimundo
Previous Updates
Recent Posts
Free Consultation

The first step in your property journey, whether it be buying or selling, is gaining clarity on your situation.

Book a Free
Or fill out a form Free Consultation