THE PRESTIGE REPORT 2 02 0/2 1
CONTENTS
4.
Market Review & Outlook Marshall White Director John Bongiorno reflects on a financial year ‘like no other’ and provides his insights into Melbourne’s premium property market.
“The premium end of the market is now the main driver of housing price increases, and our vendors are continuing to reap the rewards of higher auction success rates and fewer days on the market.”
6.
Our Prestige Property Collection A celebration of some of Melbourne’s finest properties, all sold by Marshall White during the 2020/21 financial year.
8. John Bongiorno Sales Director, Auctioneer
Economic Outlook An expert from Macquarie Business Banking looks at where to find growth opportunities in a red-hot property market.
10.
Our Offices Each of Marshall White’s six offices – Stonnington, Boroondara, Port Phillip, Bayside, Balwyn and Mornington Peninsula – reports on their particular markets and results for 2020/21.
2
22.
26.
Buying off-the-plan continues to experience high growth, particularly in the premium market.
According to the Credit Suisse Global Wealth Report, the Australian Property Market has helped build a nation of millionaires.
Projects
24.
Property Management Despite some pandemic-induced challenges, Marshall White’s premium property management portfolio continues to grow, achieving some outstanding results.
Global Insights
30.
Our Foundation Our Foundation has proudly supported many people in our communities experiencing hardship.
John Bongiorno, Sales Director, Auctioneer
By John Bongiorno Sales Director, Auctioneer
Pleasingly, the premium property market has
While this strength is forecast to continue in
remained strong with Melbourne’s median house
the second half of 2021, growth in Melbourne’s
price increasing by a further 5.5% in the final quarter.
real estate market is expected to moderate with
The premium end of the market is now the main
subdued wage and population growth.
driver of the price increases, and our vendors are continuing to reap the rewards of higher auction success rates and fewer days on the market.
MARKET REVIEW & OUTLOOK
Market Review & Outlook
“In a Financial Year ‘like no other’, 2020/21 saw Victoria’s post-pandemic bounce-back trigger the fastest housingprice growth since the 1980s.”
According to recent data from key industry analysts including CoreLogic, Domain and PriceFinder, Melbourne properties are continuing to be bought at a faster rate than
We are yet to measure the fallout of the
they are coming on to the market. While Welcome to The Prestige Report, Marshall White’s
Victorian Government’s stamp duty increases
demand, fuelled by historically low interest
review of the 2020/21 premium property market.
which came into effect on the 1st of July 2021.
rates, continues to rise, the supply is falling
In a Financial Year ‘like no other’, 2020/21 saw
Properties valued at more than $2 million now
with many potential vendors reluctant to sell,
Victoria’s post-pandemic bounce-back trigger
attract an additional 1% stamp duty on every
partly due to replacement costs.
dollar above that threshold, an increase from
the fastest housing-price growth since the 1980s. The autumn months in particular produced some incredible record-breaking results, however, by the
5.5% to 6.5%. The majority of Marshall White’s business is at this end of the market.
start of winter, the market, while still strong, had
Looking into our crystal ball, we still expect
settled into a more sustainable rhythm. The pace
property prices to continue to grow in the
of the growth spurt that took everyone by surprise
second half of this year, but as always, whether
following the first long lockdown last year had
buying or selling, it is advisable to look at real
begun to ever so slightly taper off.
estate as a long-term proposition.
John Bongiorno Sales Director, Auctioneer, Marshall White
4
MARKET REVIEW & OUTLOOK
OUR PRESTIGE PROPERTY COLLECTION
Our Prestige Property Collection A C E L E B R AT I O N O F S O M E O F M E L B O U R N E ’ S M O S T O U T S TA N D I N G H O M E S
Best Mansion 17 CHASTLETON AVENUE, TOORAK
Best Period Home
A magnificent example of Victorian architecture, 17 Chastleton Avenue underwent recent renovations with interiors by international designer Thomas Hamel and artful
Best River Views
45 CHRYSTOBEL CRESCENT, HAWTHORN
landscaping by Paul Bangay.
4A GLEN AVON ROAD, HAWTHORN
Nestled within a
Masterfully merging its
Maximising its unique position on the bend of the
majestic botanic
original grandeur with
Yarra River, this spectacular riverfront residence
garden, this c1880s
modern design, this six-
showcases a breathtaking garden, pool and river
Italianate Victorian
bedroom family home is set
views from every aspect.
residence exhibits
within Tuscan style grounds
the grace and
with a tennis court and pool.
grandeur of the era.
Best View
Best Penthouse
Best Renovation
11A/12 MARINE PARADE, ST KILDA
THE SKYHOUSE /478 ST KILDA ROAD
805 HAMPTON STREET, BRIGHTON
From the 11th floor of St Kilda’s iconic waterfront,
Unparalleled in terms of sheer scale, designer style and
A remarkable modern conversion maintaining
‘Edgewater Towers’ building, this newly renovated
bespoke luxury, this whole floor residence is surrounded
a coveted Edwardian façade and period detail
apartment presents Melbourne’s most spectacular
by Swiss made Sky Frame windows and doors that open to
throughout, provides serene integration between
panorama - over the sands of St Kilda Beach, all the
landscaped sky gardens complemented with frameless glass
indoor and outdoor living in the heart of Brighton’s
way to Williamstown in the west and to the towers
balustrades, so no view is obscured.
leafy surrounds.
of the CBD in the north.
Best Resort Living 3 MANATEE AVENUE, MOUNT ELIZA
With breathtaking water views spanning the entire bay from Mornington Harbour to Melbourne’s sparkling city skyline, this luxury beachside residence invites you to leave the world behind and holiday at home.
6
OUR PRESTIGE PROPERTY COLLECTION
ECONOMIC OUTLOOK
Economic Outlook
Opportunities in a soaring property market By Domonic Thompson, National Real Estate Segment Head – Macquarie Business Banking
After a short-lived dip in 2020, Australian property prices have surged across every capital city and most regions. In Victoria, Melbourne house values rose 9.4% since 1 January to a median value just shy of $1 million.1 So where should you look for opportunities in a red-hot market – and is this growth sustainable? Macquarie upgraded its outlook for Australian housing
T H E E CO N O M I C CO M E B AC K
prices in its March 2021 Investment Strategy Update2,
It’s rare to see all markets in Australia rise at once
forecasting a trough-to-peak rise of around 20% by the
and it’s thanks to a unique combination of forces.
end of 2022. With the growth momentum continuing as
Interest rates are at an all-time low, making the cost
more supply comes onto the market, it’s entirely possible
of borrowing more accessible. For almost 30% of
it could reach that peak even sooner.
properties in Australia, CoreLogic data suggests it may
Nationwide home prices lifted another 2.2% in May and
be more affordable to service a mortgage than rent.
“Nationwide home prices lifted another 2.2% in May and were up by more than 1% across every capital city.”
FLIGHT TO QUALITY The extended lockdown in Melbourne did create a more significant drag on the annual rate of growth, registering 5% compared with Sydney at 11.2%. Regional Victorian housing prices grew 13.1% over a 12 month period, which is in line with other regional areas.1 As first home buyers start to feel priced out once more,
were up by more than 1% across every capital city3. Unit
At the same time, consumer confidence hit an 11-year
we are seeing the more expensive end of the market
prices also strengthened across the capital cities, as
high in April 2021 , and Australia’s GDP recovered to
driving that high price growth. In Melbourne, upper
investors started returning to the market.
pre-pandemic levels in the March quarter. Business
quartile home values increased 6.5% over the past three
3
confidence also hit an index high in March. With government fiscal policies, the RBA’s commitment to low rates and an expansionary budget all providing a
“We’ve also seen a surge of pent-up demand and ‘FOMO’ – not just for housing, but across other asset classes, including equities.”
reasonable level of comfort, we expect this confidence to continue. We’ve also seen a surge of pent-up demand and ‘FOMO’ – not just for housing, but across other asset classes, including equities. And until very recently, housing supply has been tight, fuelling that sense of urgency. Even as more stock comes on, it’s quickly absorbed – for every new listing there is more than one sale occurring, with a sales to new listings ratio of 1.1.1
PROPERTY INVESTORS RETURN
But more recently, investors have returned to the
months while lower quartile values were up 3.5%.1
market. Despite rental yield compression, there are more opportunities for cash flow positive properties with average fixed term mortgage rates for investors below 2.5%.1
A SENSE OF CONFIDENCE Fears that the winding back of Jobkeeper and various homebuyer and homebuilder grants would burst
The rental market in Melbourne was disproportionately
Australia’s housing boom appear unfounded. Several
impacted by its exposure to overseas migration as a
sectors within Australia’s economy are still to re-open,
source of new housing demand. So while Melbourne’s
and once international students return we should see
average yield is one of the lowest in Australia, at 2.9%
demand for apartments grow. The RBA is not expected
gross in May 2021,1 tenancy demand should grow once
to increase interest rates until 2023 – and when they do,
international borders re-open.
they’re likely to test the market with smaller increments.
This will help clear the remaining excess inventory
In an environment of strong growth and with low rates
in high density areas and reduce the risk of unit
for at least another two years, there’s every reason to
valuations coming in under the contract.
expect this momentum to continue for some time.
In the initial stages of this post-pandemic housing boom, owner occupiers dominated lending demand – and we saw the price gap between houses and units widen. This was supported by First Home Buyer government support programs, which helped buyers overcome that deposit hurdle.
8
1 CoreLogic Hedonic Home Value Index, 1 June 2021 | 2 Visit www.macquarie.com.au/marchinvestmentstrategyupdate | consumer confidence hits 11-year high, 14 April 2021, Matthew Cranston AFR
3
House price predictions soar as
This information is issued by Macquarie Business Banking, a division of Macquarie Bank ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 and is for general discussion purposes only. It doesn’t take into account your objectives, financial situation or needs, nor is it intended as a substitute for any accounting, tax or other professional advice, consultation or service – please consider whether it’s right for you.
ECONOMIC OUTLOOK
OUR OFFICES | STONNINGTON
Stonnington
Market Insights
IN REVIEW
During the 2020/21 financial year, the main method of selling The quintessential heartland of Melbourne’s well-
premium properties in Stonnington continued to be the auction
established ‘leafy’ suburbs and most beautiful homes,
system, however, due to COVID restrictions, we did see an
the Stonnington office’s valuable real estate portfolio
increase in expressions-of-interest campaigns and the market
contains properties in Armadale, Glen Iris, Kooyong,
became more accepting of them. Our highest (disclosed)
Malvern, Malvern East, Prahran, South Yarra, Toorak and
sale price was $22 million for 9 Whernside Avenue, Toorak, a
Windsor. Surrounded by lush and expansive parklands,
5-bedroom house which sold by private treaty on March 13th.
the amenities are fabulous and varied including highend shopping precincts from Chapel Street to Glenferrie
The COVID lockdowns certainly had an impact on the market,
Road and everything in between. Families are spoiled
spurring buyers to both upgrade and scale down depending on
for choice with such close proximity to Melbourne’s
their circumstances. The upgraders are taking advantage of the
best private and secondary colleges, as well as a great
low interest rates while the down-scalers are benefitting from
range of local primary schools and childcare options.
the strong market conditions. We’re seeing clients selling the
Everything, from the CBD to Chadstone, to the Bay
family home and putting excess funds into a coastal or regional
and beyond is within easy reach due to the myriad of
property, in addition to purchasing a new city base, which is
transport options on offer.
further fuelling the respective markets.
Throughout 2020/21, the Stonnington property market performed in line with Melbourne-wide figures, achieving record sales, high auction clearance rates and low days on the market. The median sale price for all properties sold by Marshall White in Stonnington was $2.9 million.
Looking forward, we believe the premium property market
Andrew Hayne, Director and Auctioneer, Stonnington
will continue to grow due to low interest rates and also be supported by those in industries that have done well out of the pandemic. With an expected increase in people considering
Sales by Suburb
selling in the second half of 2021, vendors need to make sure their property stands out from the crowd. Presentation is paramount as well as a good marketing campaign and adhering to the market as opposed to getting ahead of it.
Highlight Sale 1 2 S O R R E T T AV E N U E , M A LV E R N
In Stonnington, a ‘COVID-friendly’ home is important as restrictions and uncertainty, for quite a while. For most of us, that means bigger or second home-office spaces, separate living rooms or larger back yards for pets and growing families.
the most coveted and tightly held recently renovated, Hawthorn brick
Sales Above $1m
Victorian residence’s unforgettable dimensions showcase a sublime blend of period grandeur and relaxed contemporary style. Features five bedrooms, three bathrooms on a
Sales 1
Median Price 2
% Change3
Armadale
35
$2,520,000
-1
Glen Iris
93
$2,280,000
+9
Kooyong
4
$3,160,000
+6
Malvern
47
$2,820,000
+6
Malvern East
82
$1,970,000
+7
Prahran
33
$1,820,000
+16
South Yarra
32
$2,050,000
+3
Toorak
67
$4,900,000
+11
Windsor
9
$1,450,000
-9
we expect that we will be living like we have been, with
Exclusively positioned in one of cul de sacs in Malvern, this beautiful
Suburb
402 2020-2021
895sqm (approx.) block.
Average Days on Market
During 2020/21, Marshall White retained its top ranking as Stonnington’s leading premium real estate agents. In total the Stonnington office sold 402 properties above $1m, amounting to a 22.7% market share. Highest ranking
27 Q1/Q2 2021
suburbs include Glen Iris, Toorak, Malvern East and Armadale. We also performed particularly well in the ultra-premium end of the market selling almost 30% of all properties worth more than $5 million.
*Source: REIV/Property Data FY2020/21 1 Refers to number of Marshall White sales in each suburb for FY 2020/21 2 Median Price for a house in each suburb as recorded by REIV/Property Data FY2020/21
10
3 Percentage change in house price in each suburb from FY2019/20 to FY2020/21 as recorded by REIV/Property Data
OUR OFFICES | STONNINGTON
OUR OFFICES | BOROONDAR A
Boroondara
Market Insights
IN REVIEW
In a highly competitive market, the Marshall White’s Based in beautiful Hawthorn, the Boroondara office
Boroondara office achieved the top ranking (according to
is the real estate hub for the equally appealing
REIV) in 2020/21 with almost one fifth of the market share.
neighbouring suburbs of Hawthorn East, Kew, Kew
The 2021 sales results also showed a marked increase in market
East, Camberwell, Canterbury, Ashburton, Burwood,
share from the previous year. Of particular note is that the
Deepdene, Glen Iris, Mont Albert and Surrey Hills. The
Boroondara office performed exceptionally well in the high-end
celebrated suburban lifestyle with proximity to the city,
sector of the marketplace in the $3 million to $5 million range,
abundance of leading schools and plenty of sports and
achieving more than 30 per cent market share. The highest
leisure facilities makes Boroondara Melbourne’s most
number of properties sold were in Glen Iris (89), Kew (76),
sought-after location for growing families. From grand
Hawthorn (54) Hawthorn East (51) and Camberwell (50).
heritage homes to contemporary multi-level apartment buildings and a wide range of classic and modern family
The highest disclosed recorded sale price was just under
homes on large, leafy blocks, Boroondara has got it all.
$8 million for 34 Parlington Street, Canterbury, a 5-bedroom house which sold on November 18th, 2020, after being on the
This financial year’s outstanding results show the
market for a short period of time.
Boroondara property market is continuing to be resilient despite pandemic-induced lockdowns and
Potential vendors, wanting to take advantage of the current
uncertainty. Strong results from expressions-of-interest
market should consider the way their property can be
campaigns and offers prior to auction were reflected
marketed to ensure it stands out from the crowd and achieves
in the decrease in number of days on market. Demand
a maximum price. This includes highlighting ‘pandemic-living’
continues to be strong and while supply is increasing,
‘must-haves’ such as home-office and study spaces, multiple
it is still not at a level that will satisfy the number of
living spaces and ‘retreats’ for parents or teenagers, pet-
buyers in the marketplace.
friendly spaces, proximity to schools, shops and parkland. Hamish Tostevin, Director and Auctioneer, Boroondara
Sales by Suburb Suburb
Highlight Sale 6 7 B R O A D W AY, C A M B E R W E L L Superbly set on a wide botanical garden allotment of 1,731sqm (approx.) graced by soaring mature trees and featuring a circular driveway, this
Sales 1
Median Price 2
Sales Above $1m
Ashburton
23
$1,790,000
+10
Burwood
2
$1,300,00
+4
Camberwell
54
$2,320,000
+5
Canterbury
39
$3,110,000
+13
Deepdene
8
$2,750,000
-1
Glen Iris
93
$2,280,000
+9
Hawthorn
58
$2,450,000
+2
Hawthorn East
54
$2,230,000
+4
Kew
94
$2,600,000
+8
Kew East
17
$1,990,000
+10
Mont Albert
5
$2,160,000
+12
Surrey Hills
34
$2,100,000
+12
beautifully presented four-bedroom Queen Anne residence (c1906) is located in one of Melbourne’s most admired heritage-protected residential streets in the heart of the Tara Estate. 12
481
% Change3
*Source: REIV/Property Data FY2020/21 1 Refers to number of Marshall White sales in each suburb for FY 2020/21 2 Median Price for a house in each suburb as recorded by REIV/Property Data FY2020/21
2020-2021
Average Days on Market
26 Q1/Q2 2021
Marshall White Boroondara sold 481 properties in the last 12 months, with an average sale price of $2.3 million (excluding ‘undisclosed’ sales). Of these, 243 were sold at auction and were on the market for an average of 26 days. With fewer than normal properties for sale in Boroondara, competition has been strong, and prices are tipped to lift up to 13 per cent in the second half of this year.
3 Percentage change in house price in each suburb from FY2019/20 to FY2020/21 as recorded by REIV/Property Data
OUR OFFICES | BOROONDAR A
OUR OFFICES | PORT PHILLIP
Port Phillip
Market Insights
IN REVIEW The team at Marshall White Port Phillip has sold more than 200 properties in the last 12 months, with an Marshall White Port Phillip is the real estate hub
average sale price of $2.1 million (excludes undisclosed
for the fashionable and highly desirable suburbs of
sales results) and the average number of days on the
Albert Park, Elwood, Southbank, South Melbourne,
market was 27 days. The highest recorded sale price
St Kilda, St Kilda East, St Kilda West, Middle Park
was $7.9 million for 312 Danks Street, Middle Park, a
and Port Melbourne. Flanked by the shores of
6-bedroom house which sold by auction on May 15th
Port Phillip Bay and home to some of Melbourne’s
and was on the market for just 25 days.
most iconic drawcards including Albert Park Lake, Luna Park, Fitzroy Street and the South Melbourne
Demand in Port Phillip continues to be exceptionally
Market, this area of town is a drawcard in itself.
strong, especially in the high-performing suburbs of
With everything you would expect from inner
Port Melbourne, South Melbourne, Middle Park and
suburban living such as excellent public transport
Albert Park. While supply is on the uptick, it is still not
and fabulous schools, there are also lots of ‘village
at a level that will satisfy the number of buyers in the
style’ shops full of brunch spots, cosy wine bars
marketplace. In every area in which we operate and
and eclectic boutiques, adding to the strong
at every price level we are seeing consistently strong
community vibe.
demand. There is an average of three bidders vying
There is something for everyone in the Port Phillip property market from contemporary apartments to historic terraces and ornate Victorian and art deco mansions. Auctions continued to be the main selling method throughout 2020/21 and Port Phillip properties sold consistently high at wellattended and competitive on-site auctions as well as online auctions.
Highlight Sale
for each property, and in a number of cases, five or six potential purchasers.
Oliver Bruce, Director and Auctioneer, Port Phillip
Despite the disruptions of the lockdowns, the market has shown great resilience and demand has remained high, showing no signs of diminishing. In fact, it is likely buyers to enter the market.
Sales Above $1m
1 6 4 PA G E S T R E E T, M I D D L E PA R K
Brilliantly combined original grace and grandeur with state-
208
superbly located home on a street frontages, features a
Average Days on Market
spectacular renovation and extension. Featuring five bedrooms, including a separate apartment, the property offers an utterly breathtaking and
Suburb
Sales 1
Median Price 2
% Change3
Albert Park
33
$2,310,000
+9
Elwood
16
$2,050,000
0
Melbourne
10
N/A
N/A
Middle Park
26
$2,850,000
+7
Port Melbourne
50
$1,800,000
+16
South Melbourne
47
$1,670,000
+6
St Kilda
11
$1,630,000
+10
St Kilda East
2
$1,690,000
+12
St Kilda West
13
$2,650,000
-9
2020-2021
of-the-art designer style, this 55m deep allotment with two
Sales by Suburb
that greater levels of supply will encourage even more
27 Q1/Q2 2021
versatile family domain.
Marshall White continued to lead the Port Phillip prestige market selling the highest number of sales for properties over $1 million, which equated to an overall market share of almost 30%. Our highest-selling suburbs were Port Melbourne, South Melbourne, Albert Park and Middle Park.
*Source: REIV/Property Data FY2020/21 1 Refers to number of Marshall White sales in each suburb for FY 2020/21 2 Median Price for a house in each suburb as recorded by REIV/Property Data FY2020/21
14
3 Percentage change in house price in each suburb from FY2019/20 to FY2020/21 as recorded by REIV/Property Data
OUR OFFICES | PORT PHILLIP
O U R O F F I C E S | B AY S I D E
Bayside
Market Insights
IN REVIEW
It’s been an exciting 12 months to be involved in the Bayside premium property market. We have seen some record-breaking
Beautiful Bayside is home to glorious beaches, excellent
results, that we would not have thought possible pre-pandemic.
schools, boutique shopping, fine dining, golf courses and parkland. No wonder it’s such a popular place to
Whilst private sales and expressions-of-interest campaigns
live. This year, Marshall White is celebrating a decade of
continue as two of the main methods of sale, we are seeing
service in Bayside, and we are looking forward to many
rapid growth in the number of auctions due to high demand
more to come.
and the strong results achieved.
Homeowners are spoiled for choice in the suburbs Beaumaris, Black Rock, Brighton, Brighton East,
The highest disclosed sale price was $7.1m for 28 Normanby
Cheltenham, Hampton, Hampton East, Highett and
Street, Brighton, a 5-bedroom house which sold by private treaty
Sandringham – with an incredible range of property types.
on November 7th, 2020, and was on the market for 40 days.
Famous for its brightly coloured beach boxes Brighton
Bayside will continue to perform well due to its large number of
and its prestigious ‘golden mile’ has long been considered
family-size properties, offering ‘resort style’ amenities with plenty
the jewel in the property crown for many Melburnians.
of space for growing families to live, play, work and study.
Neighbouring Brighton East is increasing in popularity due to its heritage aesthetics and suburban charm.
To make sure their property will stand out and achieve an
Beaumaris, Black Rock, Hampton and Sandringham offer
optimum sales result, potential vendors should really consider
relaxed beachy vibes with a mix of properties including
having their property professionally styled and marketed, which
grand, heritage and modernist homes, while Hampton
can make a huge difference. Styling can highlight the potential
East, Highett and Cheltenham are proving fabulous value
for ‘post-pandemic must-haves’ such provision for multiple
with proximity to everything Bayside has to offer.
Stephen Smith, Director and Auctioneer, Bayside
home-office/study spaces, living and ‘retreat’ areas for parents and teenagers, a back garden which is fully fenced and a lawn area for pets. Across Bayside there is also enormous demand for single level properties for down-sizers as well as entry level
Highlight Sale
Sales by Suburb
properties for first homebuyers and investors.
2 K I N A N E S T R E E T, B R I G H T O N
This iconic four-level residence
Suburb
Sales 1
Median Price 2
% Change3
Beaumaris
17
$1,820,000
+5
Black Rock
5
$2,200,000
+10
208
Brighton
80
$3,200,000
+16
2020-2021
Brighton East
46
$2,170,000
+19
Cheltenham
3
$1,210,000
+10
Hampton
25
$2,300,000
+20
Hampton East
8
$1,530,000
+18
Highett
13
$1,460,000
+15
Sandringham
11
$2,030,000
+15
Sales Above $1m
soaring high above the bay is magnificent with sprawling grounds and two street frontages that reveal two pools, a tennis court, and a grand French-inspired parterre garden. The grand-scale landmark home and resort-style oasis, encompasses an enormous 3,200sqm (approx.) of rare Brighton beachside land.
Average Days on Market
25 Q1/Q2 2021
Marshall White continued to lead the Bayside ultra-prestige market selling the highest number of sales for properties RANKED NO.1 IN MARKET SHARE FOR PROPERTIES OVER $5 MILLION
*Source: REIV/Property Data FY2020/21 1 Refers to number of Marshall White sales in each suburb for FY 2020/21 2 Median Price for a house in each suburb as recorded by REIV/Property Data FY2020/21
16
over $4 million. Suburbs where we sold the most properties were Brighton and Brighton East.
3 Percentage change in house price in each suburb from FY2019/20 to FY2020/21 as recorded by REIV/Property Data
O U R O F F I C E S | B AY S I D E
O U R O F F I C E S | B A LW Y N
Balwyn
Market Insights
IN REVIEW
Due to the great depth of buyers, auctions were the main method of selling premium properties in Balwyn
Just 10 kilometres along the tram line from the CBD,
and surrounding suburbs during the 2020/21 financial
Balwyn is very popular with established families and
year. The impact of lockdowns was minimised by
young professionals due to its mix of prestigious
pivoting to online auctions for properties that had
houses and apartments, excellent schools and
already been on the market for a few weeks and had
public transport. Peppered with tree-lined reserves
sufficient open-for-inspections. It was decided to
and pockets of lush parkland, Balwyn’s wide leafy
postpone or pause campaigns for properties that had
streets display a diversity of housing styles including
just come to market (and had not had enough open-for-
grand heritage-listed residences from the Victorian,
inspections). These properties went on to achieve great
Edwardian and art deco eras, as well as modernist and
results at on-site auctions once running through the
contemporary homes and new apartment complexes.
campaign course.
Being located in the school catchment zone of the highly-regarded Balwyn High School with
The demand for premium ‘ready-to-move-in’ property is
its consistently outstanding academic results is
still very robust. Unlike a premium motor vehicle which
another factor that has seen an increase in Balwyn’s
is relatively readily available, buyers sometimes have to
popularity. Characterised by an elevated landscape
wait for years for the right premium properties to come
with outlooks from the city skyline to the Dandenong
onto the market. COVID-19 simply just makes that a
ranges, Balwyn and neighbouring Balwyn North
longer wait.
are experiencing a higher than average growth in property values.
To make sure properties stand out and achieve a successful sales result, potential vendors should perform William Chen, Director and Auctioneer, Balwyn
maintenance and repair during winter. Speak with agents for more tailored advice to ensure the property
Highlight Sale 1 6 L A N D E N AV E N U E , B A LW Y N N O R T H
Spectacular in scale, style and level of finish, this sensational brand new architect designed
is priced competitively in the market place and let the market speak. Home-offices are certainly in demand with
Sales Above $1m
the work-from-home situation. People are looking for larger, lifestyle opportunities where they would feel very comfortable being ‘locked down’ in.
75
Sales by Suburb
2020-2021
contemporary residence delivers the ultimate family lifestyle with state-of-the-art sophistication and breathtaking luxury. Set over three levels, the
Average Days on Market
five-bedroom home features a sublime heated swimming pool and magnificent views.
26
Suburb
Sales 1
Median Price 2
% Change3
Balwyn
42
$2,460,000
+5
Balwyn North
33
$2,040,000
+9
Q1/Q2 2021
Balwyn continues to see exceptional demand and limited supply which is driving the high growth in property values. Marshall White’s median sale price in Balwyn in 2020/21 has increased by 15.2% from the previous year, and there has also been a marked reduction in the average days on the market.
*Source: REIV/Property Data FY2020/21 1 Refers to number of Marshall White sales in each suburb for FY 2020/21 2 Median Price for a house in each suburb as recorded by REIV/Property Data FY2020/21
18
3 Percentage change in house price in each suburb from FY2019/20 to FY2020/21 as recorded by REIV/Property Data
O U R O F F I C E S | B A LW Y N
OUR OFFICES | MORNINGTON PENINSULA
Mornington Peninsula
Market Insights The Peninsula premium property market looks set to
IN REVIEW
continue to outperform the Melbourne metro market during the next financial year. Properties, such as 9 Cook Street Flinders, which sold after auction in February
Beaches, wineries, golf courses, captivating landscapes
for $5.5 million (Marshall White Mornington Peninsula’s
and wide open spaces. With its beautiful natural
highest sale) proved that buyers are prepared to pay a
environment and wide range of lifestyle properties it’s
premium for an exclusive coastal address.
no wonder the Mornington Peninsula has seen a huge surge in popularity throughout the pandemic.
The Peninsula has recently had an influx of Melbourne buyers because of pandemic-induced lifestyle changes
After restrictions eased following the second (long)
and the ability to work from home. The Peninsula offers
lockdown, confidence was still strong and Marshall
a wide variety of properties to suit a broad range
White’s Mt Eliza office had accumulated a large pool of
of buyers, ranging from apartments, units, houses,
buyers, all eager to purchase properties on the Peninsula.
acreages and wineries.
In 2020/21 Mornington Peninsula addresses dominated the REIV’s municipalities list, racking up five of the
Potential vendors looking to sell in 2021/22 should
State’s top 20 suburbs for annual growth. Mt Eliza and
ensure their property is priced correctly from the
Mt Martha were top performers with annual growth rates
beginning of the campaign. This will see a shorter
exceeding 30%. The main method of selling Mornington
number of days on the market and a successful sales
Peninsula premium properties continues to be by private
result. If the property is vacant, we recommend vendors
sale and expressions-of-interest campaigns, however
consider having the property styled, we are seeing
due to strong competition and high demand, auctions
great results with styled properties, particularly in the
are becoming more popular with vendors.
current climate with reliance on photography and online
Louise Lupton, Director, Mornington Peninsula
marketing platforms due to COVID. ‘Contemporary coastal’ theme styling can really add to a Peninsula
Sales by Suburb
property’s appeal.
Highlight Sale 6 O S P R E Y AV E N U E , MOUNT ELIZA
Exclusive, contemporary residence with stunning 180 degree panoramic views from Mornington to the CBD,
Sales Above $1m
87 2020-2021
this secluded four-bedroom family oasis with huge, bay-facing swimming pool presents a rare opportunity to live or holiday in a private waterfront
Average Days on Market
Suburb
Sales 1
Median Price 2
% Change3
Flinders
1
$3,460,000
+59
Frankston South
6
$970,000
+11
Mornington
30
$1,070,000
+22
Mount Eliza
40
$1,720,000
+35
Mt Martha
8
$1,460,000
+20
Sorrento
2
$2,000,000
+25
haven at the edge of Port Phillip Bay.
24
The Mornington Peninsula continues to see exceptional
Q1/Q2 2021
in property values. In its first year of operation, Marshall
demand and limited supply which is driving the high growth White’s Peninsula office, has achieved a high overall ranking in a highly competitive market, and is on track to increase its market share in 2021/22. Watch this space!
*Source: REIV/Property Data FY2020/21 1 Refers to number of Marshall White sales in each suburb for FY 2020/21 2 Median Price for a house in each suburb as recorded by REIV/Property Data FY2020/21
20
3 Percentage change in house price in each suburb from FY2019/20 to FY2020/21 as recorded by REIV/Property Data
OUR OFFICES | MORNINGTON PENINSULA
PROJECTS
Projects
Market Insights Confidence is a critical factor influencing the off-the-
Marshall White Projects marketed and sold over 730 off-
plan market, and with interest rates remaining low and
the-plan properties during the 2020/21 financial year with
the nationwide property market at record highs, investor
an average sale price of just over $1,070,000. Throughout
confidence is currently very strong. We have seen this
the 2020/2021 financial year we continued to dominate in
improve throughout the 2020/21 financial year, despite
premium off-the-plan developments in and around our inner-
the pandemic and lockdowns. The residential market and
metropolitan network areas of Stonnington, Boroondara,
the off-the-plan market are inextricably linked, especially
Balwyn, Bayside and Port Phillip while expanding into suburbs
for empty nesters looking to downsize. Off-the-plan
along growth corridors where townhouses or house and land
buying is particularly popular with buyers wanting to sell
packages continue to be increasingly popular.
their family home and downsize without compromising quality of lifestyle.
At the 2021 Melbourne Design Awards, the Marshall White
“With interest rates remaining low and the nationwide property market at record highs, investor confidence is currently very strong.”
Projects team was recognised for excellence across four of our residential developments – Arcade Residences, Soligo
For investors, depreciation allowances for new properties
Balwyn, Ascot Place and Alma Village. We are very proud
and the cash flow advantages associated with negative
of our team and the architects, developers and creatives
gearing is always appealing. With both State and Federal
they work alongside to bring these outstanding off-the-plan
government property tax, rebates and incentive schemes
properties to life.
changing on a regular basis it’s important to keep up to date, as this can save buyers significant amounts. Leonard Teplin, Director, Marshall White Projects
Highlight Project
Highlight Project
H A Z E L H AW T H O R N
CUSTOM
After an outstanding success, selling 17 off-the-plan apartments
Construction is progressing well on site at Custom,
in just 27 days, construction is now well underway at 368
Highett. Crafted by MAP Architecture, Custom will bring
Auburn Road in Hawthorn. Inspired by the area’s natural
a new calibre of living to the vibrant heart of Bayside
landscape, Hazel’s architecture perfectly balances natural
Highett. Designed to foster sustainable living, the
materials with dark powder coated steel balustrades, glazed
development has an overall 6-star energy rating and is
aluminium windows and expansive French doors to create a
curated to blend in with the residential character of its
refined expression of strength and grace. Living areas have
surroundings. Punctuated by spacious balconies, the
been carefully considered to offer residents generous open
unique linear form of the bricked building is softened by
spaces and abundant natural light. Inside each Hazel residence,
flourishes of lush greenery.
Conrad Architects has shown exemplary attention to detail. Engineered chevron oak flooring, meticulously crafted kitchens and bathrooms and expansive floor-to-ceiling windows and sliding doors invite the outdoors inside.
Address
368 Auburn Road, Hawthorn
No. of apartments
17
Gross revenue
$18,534,000
Price range
$775,000 to $1.635 million
Time on market
Sold out in 27 days
22
Address
18-20 Station Street Highett
No. of apartments
38
Gross revenue
$24,653,000
Price range
$410,000-$979,000
Time on market
Sold out in under 6 months
PROJECTS
Property Management
Property Management forecast
During the lengthy lockdown of 2020, the demand for all residential property types declined, however, the properties that were leasing were those with extra outdoor space and study areas or extra rooms
Marshall White Property Management has more than
for working from home. Consequently, it continues
2,500 properties under management across the six
to be a time of challenge in the apartment market
Marshall White offices of Stonnington, Boroondara,
sector with an oversupply and a wide choice of
Port Phillip, Bayside, Balwyn and Mornington Peninsula.
properties for prospective tenants to choose from.
The pandemic continues to affect the Property Management business as many owners re-evaluate their
PROPERT Y MANAGEMENT
Market Insights
financial situation. However we fully expect the demand for apartments to recover following the vaccine rollout and an increase in consumer confidence.
Leading the way in the premium property sector, in 2020/21 our average rental is $785 per week, compared
The slowdown in demand has put downward
to the Melbourne metro median of $480 per week.
pressure on rent prices and we are seeing renters upsizing from one-bedroom apartments
Despite the challenges brought on by the pandemic,
to two-bedroom apartments for the same rent,
Marshall White Property Management consistently
representing a drop of up to 20% in some instances
achieved higher rents for our Residential Rental
as prospective tenants become more accustomed to
Providers across all office areas. In May 2021 we signed
negotiating lower rents.
off on a $4,000 per week rental for a 6-bedroom home in Brighton, and overall, we have leased 20 properties
Post-lockdown, we have seen two markets emerge,
this year at rents of more than $2,000 per week.
one for apartments where supply is outweighing
Properties under management
2500
Average Rent
$785 per week
Highest Rent
$4,000 per week
Marshall White suburbs median rent
$704 per week
Melbourne Median Rent
$480 per week
demand and the other market for family homes
Marshall White Property Management is committed
where demand is outweighing supply. This swing
to working together with Sales to achieve the best
Office
Our Average Rent per week
Market Average Rent per week
Our Highest Let per week
Stonnington
$854
$778
$3400
Boroondara
$744
$693
$2200
Port Phillip
$825
$724
$2500
Bayside
$890
$760
$4000
Balwyn
$803
$674
$2000
Mornington Peninsula
$645
$607
$1400
in demand is mainly caused by the heated sales
outcomes for our common clients. This allows us to foster
market, where family homes are being sold and
and maintain strong client relationships across both
vendors are becoming renters in a tight rental
key areas of the business. During the 2020/21 financial
housing market.
year 650 new listings were received, with 430 of those successful referrals from the company’s Sales agents.
Paula Matlock, Director, Property Management
Apartments are leasing, however, it is important that early price adjustments occur according to market feedback before the property becomes stale on-line so that we are not chasing the market downwards.
Highlight Premium Rental Marshall White Stonnington Property Management secured a $3,300 per week lease for this stunning four-bedroom penthouse apartment in Prahran. Partner Kate Humphries said the apartment was leased off-market after just 7 days of introducing renters. “The renters fell in love with the property straight away during a 20 minute inspection. They formally applied for the property within 24 hours and were approved shortly after.”
24
“Despite the challenges brought on by the pandemic, Marshall White Property Management consistently achieved higher rents for our Residential Rental Providers across all office areas.”
PROPERT Y MANAGEMENT
GLOBAL INSIGHTS
Global Insights Residential property helps build a nation of millionaires
By Andrew McAuley, Chief Investment Officer, Private Banking, Credit Suisse
Almost one in ten Australian adults is now a USD millionaire, according to the recently released Credit Suisse Global Wealth Report. Now in its twelfth year, the Report, which provides a comprehensive analysis of global wealth trends, reveals that Australia continues to top or nearly top most global measures of wealth (as it has for many years). Australia led the global rankings for median wealth per adult for the 2020 calendar year, as measured in US dollars (USD 238,070), ahead of Belgium (USD 230,550), Hong Kong SAR (USD 173,770) and New Zealand (USD 171,620). In terms of mean wealth per adult, Australia ranked 4th with USD 483,760 in 2020 behind Switzerland (USD 673,960), the USA
G L O B A L W E A LT H H O L D S S T E A DY
The Report highlighted some interesting statistics
DESPITE TURMOIL
from Australia:
mean wealth per adult globally at USD 65700 after
The main takeaway from this year’s Report, was that
Switzerland (USD 70,729).*
while the pandemic had an acute short term impact on
• Australia is now home to 1.8 million millionaires, or 3.2% of the world’s total and recorded the third-highest increase in the number of millionaires (up 392,000), mainly due to currency appreciation against the US dollar.
(USD 505,420) and Hong Kong SAR (USD 503,340). Australia recorded the second-highest increase in
global markets, this was largely reversed by the end of The Report measures household wealth in terms of
June 2020. Global wealth not only held steady in the
the value of financial assets (i.e. stocks, bonds, etc)
face of such turmoil, but in fact rapidly increased in the
and real assets (primarily real estate) minus debt.
second half of the year. Indeed, wealth creation in 2020
It includes superannuation balances, but not public
appears to have been completely detached from the
pensions. For comparative purposes all figures are
economic woes resulting from COVID-19.
quoted in USD. The Report estimates that USD 17.5 trillion was lost from total global household wealth between January and March 2020, equivalent to a fall of 4.4%. Surprisingly, in the second half of 2020 share prices continued on an upward path, reaching record levels by the end of the year. Housing markets also benefitted from the prevailing optimism as house prices rose at rates not seen for many years. The net result was that
• By 2025 the number of millionaires is forecast to increase 70.1% to approximately 3.1 million. • Almost one in ten Australian adults is now a USD millionaire. The millionaire density in Australia has increased from 0.8% in 2000 to its high of 9.4% in 2020. • Australia now has approximately 3,262 ultra-highnet-worth adults with net worth exceeding USD 50 million in 2020.
“Housing markets also benefitted from the prevailing optimism as house prices rose at rates not seen for many years.”
While it may be a surprise for us to forecast a dramatic increase in the number of millionaires over the next five years in Australia (up 70%), this will be driven by the ongoing performance of our two principle sources of wealth, housing and financial assets, underpinned by robust GDP growth.
USD 7.4 trillion was added to global household wealth
Looking forward, we need to be watchful of signs
during the year.
of inflation and an inevitable increase in interest rates and the knock on effect this will have on the housing market.
26
GLOBAL INSIGHTS
GLOBAL INSIGHTS
ECONOMIC RESPONSE TO THE PA N D E M I C The Australian policy response to the pandemic was similar to the global experience – at least from an economic perspective - as we moved quickly to implement policies to keep the economy from slowing. The RBA’s lowering of interest rates in conjunction with other Central Banks across the world, was probably the biggest contributor to Australia’s performance in the Global Wealth rankings in 2020. This was the main driver of equity and housing market increases across Australia. The rapid appreciation of the Australian dollar over 2020 also played a significant role in Australia’s position in the rankings.
“The main takeaway from this year’s Report, was that while the pandemic had an acute short term impact on global markets, this was largely reversed by the end of June 2020.”
A more detailed look at the composition of Australian wealth, shows that little has changed since the turn of the century. Financial assets comprised 39.5% of gross assets in 2000 versus 42.1% at the end of 2020. Change has been more pronounced in
TA B L E 2 : C O U N T R Y R A N K I N G S B Y M E A N A N D
New Zealand, where financial assets made up 65.5%
M E D I A N W E A LT H P E R A D U LT, 2 0 2 0
of gross assets in 2000, yet between 2000 and 2020 that proportion has fallen to 54.1%.
Rank
Country
2020
Median wealth per adult (USD) 2020
Change 2019-20
L O W I N T E R E S T R AT E S AV E R T
Australia over the same period, from 16.5% in 2000 to
G LO B A L C R I S I S
17.5% in 2020. Whereas in New Zealand private debt now accounts for 11.4% of gross assets, little different from the 11.0% of gross assets it recorded in 2000. The picture is
1
Australia
238,070
32,280
2
Belgium
230,550
35,330
public debt rose from 47.5% of GDP in 2019 to 63.1% in
3
Hong Kong SAR
173,770
-10,550
2020, and New Zealand’s went up from 32.1% to 41.3%. For
4
New Zealand
171,620
7,180
5
Denmark
165,620
16,980
6
Switzerland
146,730
14,090
7
Netherlands
136,110
16,880
8
France
133,560
7,090
9
United Kingdom
131,520
8,100
10
Canada
125,690
11,330
Rank
Country
2020
Mean wealth per adult (USD) 2020
Change 2019-20
1
Switzerland
673,960
70,730
2
United States
505,420
41,870
3
Hong Kong SAR
503,340
-26,420
4
Australia
483,760
65,700
5
Netherlands
377,090
46,030
6
Denmark
376,070
38,750
7
Belgium
351,330
54,030
8
New Zealand
348,200
15,150
9
Sweden
336,170
55,460
10
Singapore
332,990
25,460
Disclaimer: This information and any opinions expressed were prepared by Credit Suisse as of the date of writing and are subject to change without notice. Any advice is general advice only. It was prepared without taking into account your objectives, financial situation, or needs. Before acting on this information you should consider if it’s appropriate for your particular circumstances. You should also obtain and consider any relevant product disclosure document and terms and conditions before you make a decision about any financial product, and consider if it’s suitable for your objectives, financial situation, or needs. We recommend you should seek professional financial and taxation advice prior acting or relying on this article. Past performance is not an indicator of future performance. © 2021 Credit Suisse AG, Sydney Branch (“Credit Suisse”) ABN 17 061 700 712, AFSL and ACL: 226896
28
The importance of private debt has risen only slightly in
vastly different for Government debt however. Australia’s
comparison, the average rise of 12.4 percentage points is roughly two thirds of the average rise of 19.3 percentage points among G7 countries.
There is no denying actions taken by governments and central banks to organise massive income transfer programs to support the individuals and businesses most adversely affected by the pandemic, and by lowering interest rates, have successfully averted a full scale global crisis. Although successful, these interventions have come at a great cost. Public debt relative to GDP has risen throughout the world by 20 percentage points or more in many countries. Generous payments from
“The RBA’s lowering of interest rates in conjunction with other Central Banks across the world, was probably the biggest contributor to Australia’s performance in the Global Wealth rankings in 2020.”
the public sector to households have meant that disposable household income has been relatively stable, and in some circumstances, even risen. Coupled with restricted consumption, household saving has surged, inflating household financial assets and lowering debts. The lowering of interest rates by central banks has probably had the greatest impact. It is a major reason why share prices and house prices have flourished, and these translate directly into the valuations of household wealth.
Credit Suisse Private Bank Australia was established in 2007 and are the largest wealth provider in Australia with a strong commitment to this market. Whilst global insights are crucial, they also understand the importance of local needs. With residential property acting as a critical building block in the generation of wealth, Credit Suisse offers a market leading, luxury residential mortgage lending solution. To find out more about how Credit Suissse may be able to help your situation, please contact Joseph Azoulay, Head of Private Banking Melbourne on (03) 9280 1666. The Global Wealth Report 2021 is available at: www.credit-suisse.com/ch/en/about-us/research/research-institute.html
GLOBAL INSIGHTS
O U R F O U N D AT I O N
Our Foundation Established in 2015, the Marshall White Foundation is committed to making a lasting and significant difference to people experiencing hardship with a particular focus on crisis housing and mental health. Launched with an initial donation of $10,000, the Foundation’s intention is to provide immediate financial assistance to selected beneficiaries, while also become self-supporting in the future. The Foundation’s financial plan is to continue to grow a core investment base and use the income from this as an ongoing source to provide help where it is needed. Since its conception the foundation has grown its investment base to more than $2.25 million and has continued to ensure that
“The Marshall White Foundation is committed to making a lasting and significant difference to people experiencing financial hardship and mental health issues.”
each dollar donated has remained as part of its corpus whereby
Director, James Redfern, sleeping rough for Launch Housing challenge
2020-2021 L AU N C H H O U S I N G PA R T N E R S H I P The COVID-19 pandemic has brought more sharply into focus how important it is to have a comfortable and safe home. During the lockdowns it became apparent that many people in our community, particularly women and children, were experiencing, or were at risk of experiencing homelessness.
the investment income from its base, now provides significant and ongoing support to our charity partners (currently in excess
The Marshall White Foundation partnered with
of $100,000 per annum) and most importantly is maintained as
Launch Housing, an independent, Melbourne-based
a continuing source of funding in perpetuity.
not-for-profit that is passionately committed to
“The COVID-19 pandemic has brought more sharply into focus how important it is to have a comfortable and safe home.”
helping people in crisis and ending homelessness.
This achievement has only been possible through the generous and ongoing support of many wonderful people, and we thank them most sincerely.
During the first half of 2021, the Marshall White Foundation was pleased to supported Launch Housing through three initiatives:
THE ROUGHIN’ IT CHALLENGE Love Me Love You is a grass roots, non-profit organisation that strives to empower and build
More than $16,500 was raised by a group of
resilience in young adults so that they may
Marshall White team members and directors who
overcome the stigma surrounding mental health
took part in the Roughin’ It challenge during April.
and other life hardships. They are making a real
Designed to put a spotlight on the daily realities
difference to people’s lives and mental health by
faced by homeless people, the challenge was to
introducing prevention programmes into schools
spend 24 hours with no bed, one bag of belongings
and community sporting organisations. Love Me
and just $10 in cash. This really brought home the
Love You currently gets no government financial
hardships faced by many in our community.
support and the Marshall White Foundation was
Me Love you) and his team bring to this area of community focus.
Housing whereby their donation was matched dollar for dollar by the Marshall White Foundation. This initiative contributed at least $100,000 to Launch Housing’s gift matching Appeal.
Our Commitment. The Marshall White foundation is committed to our ongoing support of causes in need and would
very pleased to be able to donate $40,000 to the work that Lance Picioani (Founder of Love
This initiative invited people to put their hearts where homelessness is, by donating to Launch
LOV E M E LOV E YO U
this much-needed organisation and is proud of
A G I F T M AT C H I N G I N I T I AT I V E
like to again thank the many wonderful people that WOMEN ’S R APID REHOUSING The foundation was also able to help Launch Housing with a direct donation of $20,000 to their Women’s Rapid Rehousing Fund.
have and continue to make our mission a reality. For more information about the Marshall White Foundation, or to donate, visit marshallwhite.com.au/ marshall-white-foundation/
Love Me Love You walk for mental health, 2021 30
O U R F O U N DAT I O N
M A R S H A L LW H I T E . C O M . A U
Stonnington
Boroondara
Bayside
Port Phillip
Mornington Peninsula
1111 High Street Armadale 3143
801 Glenferrie Road Hawthorn 3122
225 Bay Street Brighton 3186
101 Dundas Place Albert Park 3206
98 Mount Eliza Way Mount Eliza 3930
270 Whitehorse Road Balwyn 3103