The real estate dynamics in Stonnington & Boroondara for the year 2023 showed a steady performance in comparison to the remainder of Victoria's property market. Despite facing challenges such as increased interest rates, rising cost-of-living, limited lending and housing undersupply, Melbourne's market message was clear: ‘resilience prevailed,’ evidenced by a 3.5% increase by the close of 2023. In local insights, Boroondara experienced steady growth mid-year, maintaining strong auction clearance rates despite economic uncertainties, and Stonnington, benefiting from renewed international interest, displayed late-year vibrancy. However, an overall decrease in bidder numbers impacted success rates at auction. Melbourne's property landscape has been forever influenced by 'liveability' considerations post covid. The stability in Stonnington & Boroondara, anchored by superior amenities & schools, positions the market as a favourable choice for discerning downsizers, investors, and family buyers alike. Owner occupiers continue to dominate the market in 2024, constituting 38.99% in Stonnington & 27.1% in Boroondara, based on Census data. With low vacancy rates at 1.7% and an unprecedented 15.8% average rental increase across Melbourne, the rental market faces both supply & demand challenges. Economic pressures on investors may lead to increased turnover, potentially benefiting owner/occupiers. Post-Covid, Melbourne's population recovery is on an upward trajectory, driven by an expected annual increase of 92K people from 2023 onwards, this growth suggests a rising demand for properties, with a shift back to a more 'city-centric' landscape anticipated in 2024. Building on the success of 2023, we anticipate continued high demand & performance in Stonnington/Boroondara. Our agency's success is attributed to presenting quality homes, accurate pricing, and exceptional property presentation, essential elements for driving interest & achieving desirable results. While optimism exceeds expectation, numerous challenges like rate rises, land taxes & conservative lending approaches may impact 2nd homes or investment properties. However, the resilient nature of the Stonnington/Boroondara community, characterised by first-class infrastructure & financially established residents, is expected to contribute to the market's stability. Financial institutions project growth in Australia's real estate market, with a 4-5% rise anticipated. This positive outlook extends to Stonnington/Boroondara, suggesting continued upward trends in property values towards the end of 2024 or sometime in 2025. Zali Reynolds Director | Founder Market Summary
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