16th October 2023 / Jeremy Desmier: Market Update | 14 & 15 October 2023

It was a rather dreary weekend in Melbourne, weather-wise, as just a few glimpses of sunshine here and there. Across the country, many "democracy sausages" were enjoyed as we had our say for the referendum and, in terms of auction day, the Domain Group reported a 63% clearance rate in Melbourne, compared to 61% at the same time last year.

The Domain House Price Report shows that the market has moved into a recovery phase, with median prices in all capital cities except Canberra rising in the three months to June. Price growth, it says, will go one of two ways – steep increases or moderate lifts – and it all comes down to the pressure of affordability.

Property experts predict values in inner and middle-ring suburbs will far outstrip those in outer suburbs. This is largely due to high interest rates and rising cost of living, which are driving mortgage stress in low socio-economic areas. Such pressures are less likely to affect those in affluent or gentrifying suburbs, where more homeowners have paid off their mortgages and are free from the hassles of interest rate hikes.

It leaves many buyers and investors looking to purchase real estate in established areas, where capital growth is more likely. Proximity to local infrastructure is key, being close to the amenities that people want – cafes, restaurants, parks, beaches.

Over the weekend, we held a mix of indoor and outdoor auctions, due to the inclement Melbourne weather. In Forest Hill, both buyers and neighbours escaped the rain, with the auction held in the mid-century family home's lounge room. Two bidders participated to secure the classic home, which is located just moments from Blackburn Lake. Auctioneer Ben Williams knocked the property down to the successful purchaser at $1,325,000.

In Heathmont, four bidders competed to secure the home at 26 Viviani Crescent. Agent Kaining Ma had sold the property to the current vendors in 2014 and was thrilled to be assisting them along their property journey again. In less than ten minutes, the immaculately presented home was sold under the hammer for $925,000.

On a corner allotment of approximately 670 sqm, the two-bedroom property at 275 Greenwood Drive in Bundoora offered potential to redevelop in a peaceful and quiet neighbourhood. Three bidders competed to secure the opportunity, exchanging 55 bids between them until the property was sold under the hammer by Auctioneer Sarah Lowry for $921,000.

In the Property Management space, CoreLogic reports that national rent values rose 1.6% in the September quarter, with national house rents now rising faster than units. The ongoing shortfall in rental listings remains and important factor pushing rents higher, with the national vacancy rate recording a new record low in September of 1.1%.

We're looking forward to another busy auction weekend coming up, and hope to be able to assist you with all of your property needs.