4 minute read
Property market slow but 'stable'
Camberwell’s residential property market has remained stable in a challenging climate of high interest rates and stubbornly high inflation.
The suburb’s median house price continued to rebound in the first quarter of 2024 to $2.7 million, according to data from REIV, after falling significantly in early 2023.
According to realestate.com.au, the median house price in Camberwell is up 0.4 per cent in the past 12 months.
“From our perspective, it’s been a very stable, steady residential market in Boroondara. From apartments right through to multi-million dollar homes, everything is selling and generally meeting market expectations,” said Chris Gillon, head of sales and auctioneer at Woodards Camberwell.
“The year started off busy. There was a lot of stock and the market coped with that. Clearance rates were good through that busy February and March period, in the 70 per cent range.
“The economy has plateaued and we’ve found a bit of a norm now, therefore we’re not seeing any major growth in the market. We're seeing steady growth but nothing exponential.
“Anything from $300,000 apartments to $3–4 million homes; there are buyers at every price point.”
In a steady but slightly soft market, with the clearance rate dropping into the 60 per cent range in the second quarter, sellers have had to remain realistic, said Janssen Xiang, director and auctioneer at First National Real Estate Camberwell.
“More people are needing to sell and the auction clearance rate has not been great. We’re seeing a lot of price adjustments throughout campaigns to meet the market,” he said.
“We’ve seen prices up a bit but it's not great compared to pre-pandemic prices, despite the occasional great sale price.”
One such great sale was the record-breaking sale of Fairholme estate in February. The Georgian mansion on Prospect Hill Rd sold for $14.5 million, smashing Camberwell’s previous highest sale of $10.18 million in 2021.
Of course, Fairholme estate does not represent the general market in Camberwell, with Mr Xiang observing many foreign investors leaving the market.
“A lot of investors got out of the market because of land tax and high interest rates, especially in Camberwell and Kew, which are still highly influenced by the Asian community,” he said.
According to realestate.com.au, the median house price in Camberwell is up 0.4 per cent in the past 12 months.
“We’ve seen a lot of overseas buyers dropping out of the market due to the Foreign Investment Review Board. If an overseas buyer wants to buy anything above $2 million the application fee is now $80,000 plus stamp duty.”
Units in Camberwell performed better than houses in the first quarter of 2024, with the median price increasing six per cent to $935,000 – well above the metro Melbourne average of $635,000.
“For the sub-million market, there are incentives out there – both federal and state – so there is support there,” Mr Gillon said.
“The rental market has been difficult to be in. Rent is expensive, so people are looking for options to get out and own. Why pay very high rent when you can pay a mortgage?”
Looking forward to the spring selling season, Mr Gillon predicts the Camberwell market will remain stable.
“We don’t envisage any major shifts in the market,” he said.
“Prices should increase a little bit this year, which is probably a good sign of a period of sustained growth over time. I think everyone is still a little hesitant about exactly what’s going on with interest rates and inflation, but around Boroondara everyone is pretty astute.
“Family houses are still very, very popular and anything renovated is very popular because building and renovating costs are still high.
“We’re pretty confident the market is going to be in a good place for several years to come.”
