Word on the street: Market, Property Management and New Projects updates
As winter whizzes by and Melburnians wrap themselves up in warm clothes, our experts are wrapping up something else – the main happenings from Q2 2023 in our city’s property market. Curious what’s been keeping us busy in the fast-paced factions of our Sales, Property Management, and New Projects teams? We’re bringing you up to date with the latest market movements from April to June 2023 – so read on!
Market update
According to our Sales team’s very own market experts – Gary Peer, Jeremy Rosens, Leon Gouzenfiter and Leor Samuel – the apartment market is back. With a bang!
What’s happening now?
Buyer depth and interest have returned – with gusto. Stock, however, is late to the party.
Despite the negative spin the media might attempt to put on the stock squeeze, it’s what’s driving the market. When properties go live, we’re receiving huge amounts of enquiries. While our auction and open-home attendance rates – plus our sell-through rates – are all sky high.
As usual, homes that are modern, renovated, or freshly built are getting the most traction.
Period homes, villas, and townhouses are all being snapped up – especially if they don’t need any major work. Generational properties are still attractive.
Meanwhile, in recent months, properties priced between $1 million and $1.5 million have become a scorchingly hot commodity.
What were the quarter’s standout sales?
At 17B Robe Street, St Kilda, the 113-year-old two-bedroom, two-bathroom home of Tom Kirkhope – founder of popular shoe company Alias Mae – sold for $1,261,000, with four bidders competing on auction day.
In Hughesdale, 22 Preston Road went for $2,305,000 – exceeding the reserve price by over $350,000.
And in Brighton East, the Spanish Mission-style home at 585 Nepean Highway sold, on auction day, for $150,000 above the asking price: a hugely impressive result for a main road address.
Where to from here?
Sellers often wait for the warmer months to list their homes. So, as we work through winter’s worst weather, a splash of sunshine – and a strong spring of sales – glints on the horizon.
Property Management update
As our experts Anthony Lee and Jenny Caughey explain, winter was always a quieter time for the property management market.
At least, until COVID-19 came along with a new rule – no rules!
What seasonal trends are affecting the market?
Because of the pandemic, the last three years have wrought no summer peaks; no winter troughs. Just a market, moving at a mile a minute.
Now, however, we believe the property management scene is returning to the sway of those seasonal trends.
Meaning the slight lull we’re seeing now – while not ideal, necessarily – is neither unexpected nor unprecedented. And definitely nothing to worry about!
What are the renters doing?
The once irresistible allure of four- and five-bedroom properties has weakened – for two reasons.
For one, people are returning to the office in droves – making that extra bedroom-turned-study obsolete. For another, tenants, across the board, are pinching their pennies.
This downsizing – along with an influx of Aussies coming home and expats moving in – has bolstered the demand for one- and two-bedroom apartments.
So, providing they meet the standards set out in the recent legislation (having the right heating installed, for example), these apartments will remain, figuratively and literally, hot property.
What are the rental providers doing?
With a fresh financial year upon us, rental providers will be sitting down to balance the books. And, potentially, to make strategic decisions around whether to keep or sell their investments.
Recent changes in legislation – plus compliance demands, the possibility of rent freezes, and increases in land tax and interest rate rises – have inflated rental providers’ expenses. Meaning many, going forward, are facing a devilish, dichotomous question.
Double down? Or divest?
Where to from here?
We expect the market to remain stable over the next few months. And, come spring, to be ushering in a lively, lucrative period of activity and growth.
New Projects update
They say that the only constant is change. But for the new projects market, our expert Julian Millman explains, the last three months have been a period of remarkable stability.
The only constant? Melbourne home buyers’ voracious appetite for new-build property!
The big picture
So – what key trends are defining the new projects space right now?
Well, any complete development hitting the market is being immediately snapped up. Downsizers remain strongly represented in Melbourne’s pool of new-build buyers. And, predictably, townhouses and luxury apartments are still the most sought-after commodities.
Our own backyard
In July 2023, we launched Easton Place: a collection of 11 slick, spacious townhouses in Bentleigh East. Containing oak timber floors, plush carpet and natural stone benchwork – and realised stunningly by Alumuna Developers – these homes will make a statement. On the inside and out.
As for Seymour & Blanche, a series of spacious three- and four-bedroom townhouses in Elsternwick, a builder has been appointed, and construction will start soon.
Meanwhile, construction on Olive Green – a collection of two- and three-bedroom apartments at the old Godfreys site on Hawthorn Road, Caulfield South – will begin in early 2024.
Onwards and upwards
Casting our gaze forward, we’re thrilled to tease two alluring new-build developments.
The first, Emily, is a set of eight elegant three- and four-bedroom townhouses in Carnegie.
The second is a collection of luxurious four- and five-bedroom homes at 30 Ontario Street in Caulfield North. Combining family living with Caulfield’s convenience and community, this exciting new project will be a serious head-turner. Keep an eye out for more information!