Discover a wealth of insights, content and news in ‘Edition 6’, our most comprehensive yet.
Step into the home and life of Nick Shelton, the founder and publisher, of Broadsheet Media.
Jade O’Donahoo, cookbook author and illustrator, shares her delicious Miso Butter Ramen recipe.
The founder and host of Club Sup, Sophie, talks us through the evolution of and conceptualisation behind her supper clubs.
Win Your Seat At The Table
We’re giving 5 lucky winners 2 tickets each to a Club Sup dinner party. Enter for a chance to win.
An update from our Charitable Foundation Coordinator, Kerryn Donchi.
Ryan Brown, CEO of The Royal Children’s Hospital Foundation, discusses their partnership with our Charitable Foundation.
Explore the latest sold results in your area to stay informed about local property values.
Megan Wilson, Head of Department at Nelson Alexander Kew, provides valuable market insights for the rental market.
Journalist, Chris Tolhurst, examines Melbourne property investment, highlighting growth factors and advantages.
Discover suburbby-suburb insights, independent market performance and the latest data analysis by Property Analytics.
Explore valuable insights and trends in your local property market.
An Update from the Senior Leadership Team
Welcome to the Sixth Edition of [In]Residence
Dear Reader,
Welcome to the latest edition of [In]Residence, your go-to source for insights into Melbourne’s dynamic property market and lifestyle stories from some of our favourite Melbourne creatives.
At Nelson Alexander, we believe that informed decisions are at the heart of successful property transactions.
A question we often hear is, “How is the market performing? Are interest rates going to change?”
According to the Reserve Bank of Australia, the cash rate is expected to remain around its current level until mid to late 2024 before declining to around 3.2 per cent by the middle of 2026.
Our market is currently a tale of two stories: first-time buyers, understandably cautious due to rising costs, and savvy downsizers who are capitalising on the opportunities the current market presents. For sellers, this duality translates into a unique advantage. Well-priced properties, particularly those appealing to downsizers, are seeing strong demand. Encouragingly, overall sales volume remains steady, with specific property types such as move in ready homes, performing exceptionally well.
In this edition, we delve into land tax updates that could have an impact on some of our customers, as well as other key market conditions, in an article from journalist, Chris Tolhust—a recommended read for any investors or those considering an opportunity. Whether you’re buying or selling, a strategic approach is crucial. Buyers who act now can secure significant advantages over those who wait, and sellers who price their properties realistically can attract multiple offers and maintain buyer momentum.
Considering current land tax, holding costs, and the upcoming Vacant Land Residential Tax (2025), we highly recommend discussing your strategy with a Nelson Alexander property consultant.
Our leasing market continues to show strength, with houses performing slightly better than apartments, though all properties are leasing quickly, keeping vacancy rates low. Compliance with Rental Minimum Standards, including safety measures, is increasingly important. All Rental Providers should stay informed about the proposed legislative changes to these standards in Victoria. Our property management team are incredibly confident in their ability to advise due to regular training on such legislative updates.
Whilst the commercial sector is experiencing softer conditions, Nelson Alexander owners have still seen considerable income growth. This resilience highlights the strategic advantages of well-managed commercial properties in the current market.
As a Senior Leadership Team, we are incredibly proud of our dedicated staf f our people are our most valuable asset . This year, we’re particularly proud to congratulate 29 of our team members who have reached significant milestones at Nelson Alexander. Among them, 10 have celebrated over 20 years with us.
Their loyalty and dedication exemplify a commitment to fostering a working environment that encourages loyalty, and longevity, and positions us as an employer of choice in the industry. Unlike franchises, Nelson Alexander operates as a unified team across Melbourne’s inner suburbs. Our strength is further bolstered by the addition of several new partners, whom we warmly welcome to the Nelson Alexander Partnership.
This edition of [In]Residence is a treasure trove of inspiration for your home and life. Join us as we explore the home and life of Broadsheet Media Founder Nick Shelton, make a mouthwatering ramen with a recipe from culinary icon Jade O’Donahoo, and discover how Melbourne’s vibrant food scene fosters connections. Plus, don’t miss your chance to win an exclusive Club Sup x Nelson Alexander ticket for you and a friend. These are just a few highlights—dive into the full edition for a truly Melbourne experience.
Additionally, we bring you insights from independent analyst Andrew Stone and suburb-specific data to empower your decisions. This data suggests a potential turning point in the Melbourne property market. Whether you’re buying or selling, our experienced team is here to guide you every step of the way.
We invite you to turn to the content that resonates with you most, whether it’s lifestyle features, data analysis, or both! We hope you come away feeling more informed and connected to your community. Your feedback is incredibly valuable to us. After exploring this edition, please don’t hesitate to share your thoughts. Did a particular article resonate with you? Are there specific topics you’d like to see us cover in the future? We’re always here to listen, both online and in person.
From us to you, enjoy.
From left to right: David Sheehy (Head of People & Finance), James Keenan (CEO), Nick West (Director), Duncan McPherson (Chairman), Victoria Wycherley (Head of Marketing), Jamie Owen (COO) and Tom Roberts (Partner).
Nick Shelton Founder and Publisher, Broadsheet Media
A Dream Abode
In Their Residence with Nick Shelton of Broadsheet
Step into the distinctive Melbourne home of Nick Shelton, the visionary founder and publisher of Broadsheet Media , one of Australia’s most influential independent publishing houses. Nick’s residence is steeped in a fascinating history, tracing its roots back to the 1860’s.
Originally a private dwelling, the building was transformed into a vibrant pub until 1912. Following that era, it became a hub for metalworkers and coppersmiths, leaving a lasting imprint, evident in the gleaming floors and meticulously preserved facade—details carefully honored during its recent architectural renewal.
Nick has infused the space with his own Melbourne sensibility, a natural touch for a known authority on all things ‘Melbourne.’ Local artwork by friends grace the walls, while countless cookbooks line the shelves. Unsurprisingly, the heart of this historic home is the kitchen.
Photography by Joel Noon.
Q&A with Nick Shelton
Nick, thanks for inviting us in! Before we delve into your home life, could you tell us the story of Broadsheet’s beginnings?
I launched Broadsheet back in 2009, fresh off travelling Europe and living in London. Finding cool things to do in that massive, amazing city was nearly impossible! Returning to Melbourne, I faced the same challenge. It was a pivotal time for the city, you know? Andrew McConnell had just opened Cumulus Inc., and Mark Dundon was working his magic at Seven Seeds. The food scene, the entire city’s creative energy, buzzed with electricity. Yet, the media coverage just wasn’t there. So, at the age of 24, armed with audacity (and maybe a hint of naivety), I decided to take a stab at it. Broadsheet began as a one-man operation run from my home, and well, here we are today.
QHow does your home create a sanctuary within the vibrant energy of Fitzroy?
I love the buzz of Fitzroy—it’s essential to have that energy right at my doorstep. I couldn’t imagine living somewhere without a great cafe or wine bar within a two-minute walk. But the beauty of my apartment is that I can simply close the door and be enveloped in the comfort of my own space.
QTell us the story of discovering this unique apartment. Was it love at first sight?
It was actually through a casual conversation with a work colleague and friend, Emily (wife of Melbourne architect Dominic Pandolfini), that I discovered this place. Emily, who was then the Marketing Manager at Broadsheet, mentioned this amazing space Dom was designing. Knowing they were looking for a tenant, I asked to see it. I came over that afternoon—it was still a construction site, but I could clearly envision the potential and found it incredibly exciting —I jumped at the opportunity and have been here ever since.
QHow did the building’s “bones” inspire your vision for the space?
I love that the original facade remains intact, with its raw, unpolished finish— the graffiti and chipped paint tell a story of the building’s history. Dom’s decision to preserve this exterior while creating a clean, light-filled interior with modern lines struck a perfect balance for me. This sense of contrast is what I wanted to capture when furnishing the space.
Clean lines are important, but I also wanted to incorporate warmth and comfort to create a lived-in feel.
QYou’ve cultivated a truly unique design aesthetic in your home —how would you describe it?
Every element here is meticulously chosen. There’s a purpose behind every piece, from the stools to the couch and the thoughtfully selected table. What truly elevates this space for me is the abundance of works by my fellow Melbourne creatives (and great friends). Living surrounded by their talent is truly inspiring. Each piece tells a story—the whimsical illustrations by James Cameron, the captivating design elements from TCYK and Rhys Gorgle, and the evocative photography of Pete Tarasuik. Even the lamp, a striking centrepiece, is the work of the talented Sarah Nedovic Gaunt.
The kitchen is the heart of my home—it’s where I naturally gravitate after a long day. Whether I’m whipping up something simple or getting lost in a more elaborate creation, that’s where I tend to unwind and relax.
Q
For an apartment dweller, a spacious kitchen is indeed a luxury. Share your passion for cooking and entertaining. Does the kitchen’s layout and the rooftop terrace facilitate these gatherings?
Absolutely! I love having people over and cooking for them. I’m a social cook, and many of my friends are great cooks themselves. So, spending a whole day in the kitchen, everyone pitching in and creating something delicious, then heading up to the rooftop for an evening of food, drinks, and conversation —that’s my ideal way to unwind.
Q
Being immersed in all things “Melbourne,” are there any cafes, restaurants, or off-the-beaten-path spots you frequent that our readers would appreciate knowing about?
There are a few places I keep finding myself drawn back to. First up is Bistra on Elgin Street, this newcomer is already generating a lot of buzz, and with good reason. Headed by the dream team of
Henry Crawford (ex-Bar Romantica) alongside Joseph Ho and Alexei Taheny-Macfarlane, it’s shaping up to be something truly special.
Napier Quarter isn’t exactly a secret, but there’s a reason it keeps pulling me in. It’s the perfect place to soak up the atmosphere and discover local talent. And of course, no inner-city exploration is complete without a visit to Marion and Builders Arms on Gertrude Street.
QWhat does home mean to you beyond a physical space?
My job allows me to travel a lot, which is a privilege. But for me, home is more than just a physical space. It’s a haven where I
feel completely comfortable—a reflection of myself and the things I’m passionate about. You know, the values Broadsheet celebrates—good food, design, creativity —those are the things I celebrate too. They’re reflected throughout my space, from the cookbooks to the art; it all comes together as a central expression of who I am.
QYour passion for Melbourne is evident. What are your hopes for the city’s future, and how do you envision Broadsheet shaping that future?
At Broadsheet, we’re passionate about celebrating the things that make our communities tick—from hidden gem restaurants to cutting-edge exhibitions,
At Broadsheet, positivity is absolutely core to our mission. We write about the people, places, and things that excite us, that make Melbourne such a vibrant city. We wouldn’t recommend something we don’t genuinely love and believe in.
talented fashion designers to visionary architects. We see ourselves as champions, bringing these wonderful businesses, brands, and creative minds to the forefront.
For Melbourne, my vision is continued cultural growth. We’re already a worldclass city, and I believe that’s here to stay. The key is to keep innovating and staying ahead of the curve.
QIs there any advice you’d give your younger self?
There probably is, but honestly, I’ve enjoyed the journey so much. That’s one of the things I love about my work —it’s a constant learning experience. Maybe if I knew everything back then, I wouldn’t have even started. The truth is, it’s challenging, demanding, and complex—running a team, competing in a tough environment. But the endless challenges are also incredibly exciting. I thrive on being constantly on the move, and there’s always so much more to learn.
Jade O’Donahoo Cookbook Author and Illustrator
Miso Butter Ramen
Eat This! Recipe
Jade O’Donahoo is a Melbourne-based author, food writer and illustrator.
Jade O’Donahoo’s passion for food began in Melbourne’s restaurant and cafe kitchens. This experience culminated in her co-founding and operating the acclaimed hole-in-the-wall cafe, Switch Board.
When she decided to sell Switch Board, Jade wanted to share the magic of her most popular dishes with her loyal customers and friends. Thus, she started by writing down the recipes, a heartfelt gift transformed into a project. Illustrations were added, and “Eat This My Friend,” her blog, was born.
This initial project soon blossomed into a debut cookbook of the same name, published by Hardie Grant in 2017. Since then, Jade’s culinary expertise has been featured in various publications, including Broadsheet, Lunch Lady, and Yen Magazine.
Photography by Joel Noon.
Jade is a mum of two children, creates these zines from her tiny kitchen table, and skateboards in her spare time.
Sophie McIntire Founder of Club Sup
The Rise of Supper Clubs in Melbourne
With everyone’s living situations in disarray at the time, I was one of three strangers to move into that house. We all enjoyed a somewhat normal three weeks of living our own lives before being plunged back into the long lockdown of 2020. During that time, the three of us transformed from co-habitants into friends, who then became the great platonic loves of our lives. Bringing People Together Through Food
In the bustling heart of Melbourne, a new wave of social experiences is taking root. Supper clubs , intimate gatherings built around shared meals and conversation, are offering a welcome antidote to the digital deluge of the modern world.
My name is Sophie McIntyre, I am the founder and host of Club Sup. In 2013, I moved to Melbourne to study fashion. After my studies, I went on to work in footwear production, then transitioned to a role as a fashion planner/buyer for Uniqlo Australia. My plans to spend three months in Italy in 2020, followed by a move to London, were unfortunately crushed by the pandemic, like so many others’. During a lockdown break, I found myself living in a share house with strangers.
Having moved to Melbourne eight years earlier, I found it difficult to find friends who felt like my people. As a 19-year-old in a city on her own, without any close friends or family, I threw myself into university and work to set myself up. I rarely partied and invested way too much time in my romantic relationships. This way of life meant that when my romantic relationship crumbled, I found myself in some very dark and enduring bouts of loneliness.
In many ways, the pandemic changed the course of my life. When I moved into this shared house and found my people, it truly felt like I had been born again. It was from this experience that I started Club Sup in March of 2021. I felt like I had found healthy, rich, and encouraging platonic love, which gave me a level of happiness, confidence, and stability I had been searching for throughout my entire 20s. I wanted everyone in the community to feel a slice of that.
I felt the need for a space post-pandemic in Melbourne to connect with new people. I couldn’t bear the idea that after this truly challenging time, where we were all separated from loved ones, people
Enter our competition on page 19, for your chance to win a seat at the table or visit the Club Sup website or social media pages to discover upcoming events.
in my age bracket actually looked after one another, and there wouldn’t be a way to continue that sense of community. I knew that in my city, Melbourne, there had to be something out there that encouraged people to talk to each other and believe that, if they were feeling lost in life, there was a way they could connect with the world and get back on track.
I had planned on joining supper clubs in London when I was going to move there. However, since that was now completely off the table, I decided to start one myself, Club Sup. But what exactly is a supper club? In its purest form, a supper club is a ticketed dinner party that exists outside the traditional restaurant format. These events can be held anywhere from living room tables to rented event spaces, and sometimes even in restaurant spaces themselves.
Alongside this, I had also done a lot of research on loneliness and its effects on people. Often, loneliness is treated as a genuine health concern, especially for the elderly. The impact of loneliness on your body can be as bad as smoking 15 cigarettes a day, even magnifying the
severity of pre-existing health conditions. It’s astounding to think that cigarettes are on their way to being banned, while people walk around our cities feeling physically lonely every day. Social media, with its never-ending scrolling, posting, and messaging, makes it even worse. It tricks you into thinking you’re not alone and that everything is fine. I read that this was an issue pre-pandemic, and in 2021 after our first wave, I just knew it had gotten significantly worse.
And I was right. Everyone I spoke to was desperately yearning for connection. So, after the first wave of lockdowns in Melbourne in 2020, I launched tickets on our Instagram for our first supper club event in March 2021. I hosted the Club in unused gallery spaces or people’s homes. I would get up for the market at 6:00 AM, cook all day, and then set up and host in the evening. Hosting it this way was a great way to let off some creative steam. I was in a job that drained my creative spirit, and cooking had been my favorite way of connecting with people since I can remember. The suppers were gorgeous and intimate affairs that seemed to right all the wrongs of the pandemic.
I’ve seen so many authentic friendships blossom. People have fallen in love across the table, become roommates, secured new jobs, and found a whole new family of friends from dining at the Club Sup table.
Each month, we (myself and the Club guests) gather at a Melbourne restaurant. On weeknights, it’s Cam’s Kiosk, and on weekends, it’s Old Palm Liquor. We come together to enjoy a meal with strangers in these beautiful locations, indulging in some of the best produce and wine Australia has to offer.
Now, three years later, we’ve moved the Club to our favourite restaurants, which is really exciting for me as a host! I love to cook, but by hosting the Club in restaurants, it allows us to dine in some of Melbourne’s best restaurants while retaining the gorgeous intimacy of our first events.
The way each supper works is we sell tickets for a supper of 16-20 people. Guests can come alone or with a friend/ partner. At the Club, we strip everything back. There are no cheesy conversation starters, name tags, or games. Every time someone comes in, I say “Take this drink and then go introduce yourself to just one person. That’s the hardest part!” Then I say, “After you’ve said hi to someone, all we’re going to do tonight is talk and eat dinner. I’m sure you already know how to eat.” As soon as our guests know that, their nerves dissolve, and a beautiful energy fills the room. The room is filled with kindness and care for one another. It’s like everyone becomes hyper aware of each other’s journey in leading them to sit at this table.
Over the last year, we’ve expanded our suppers to Sydney as well as our events to include book swaps, chatty Pilates classes, art classes, and more. My vision for the Club’s future is that if you want to make a few new friends, you start with us.
Increasingly, I am finding that we are living in an online world. If we wanted to, we could eliminate human connection altogether. We can order our food, work from home, and even avoid talking to our Uber drivers. But that isn’t life. Real life is about getting to know each other, helping each other out, and sharing the experience of being human together. And the quickest and most authentic way I know to feel connected with someone is through food—the ultimate equalizer and universal language.
So, with that in mind, I encourage you to come to the Club to meet someone new. Or, if that feels overwhelming, gather a few friends and have them each invite someone new. Expand your circle—you literally never know where a conversation might lead or when you’ll need to rely on someone. You’ll be so thankful you actively built a community for yourself.
Nelson Alexander are giving 5 lucky winners two tickets each to a special Club Sup dinner party at Old Palm Liquor in August. Scan the QR code to enter.
Photography by Sophie McIntyre.
Win YOUR SEAT AT THE TABLE
Scan For More
We’re accepting applications for 2024 through our small grants program, which offers grants ranging from $500 to $1,500.
Kerryn Donchi Foundation Coordinator
Making a Difference in Our Community
A Charitable Foundation Update
At Nelson Alexander, our connection to the communities we serve is more than just words—it’s woven into the fabric of our company culture. We’re a passionate team, actively seeking ways to make a real difference through the Nelson Alexander Charitable Foundation.
Established in 2005 with a clear mission to empower individuals, community groups, and not-for-profits within our local footprint, the Charitable Foundation is a team effort. With representatives from each of our offices, we leverage our collective energy and deep respect for our communities to bring people together and create tangible improvements in our neighbourhoods.
T he Foundation provides financial, material aid and volunteer support to organisations tackling a wide range of issues impacting our communities. We focus on three key pillars: youth, education, and alleviating disadvantage. Since its inception, the Foundation has proudly distributed over $4.6 million.
W hy these pillars?
• Empowering Young People: We believe in helping young people make healthy choices and build fulfilling lives. We support organisations that provide the tools they need to navigate their world.
• Education for All: Education is key to breaking the cycle of disadvantage. We support initiatives that make education accessible, no matter someone’s background.
• Alleviating Disadvantage: We identify and address areas where our community needs a helping hand. We strive to find the gaps and make a tangible difference.
S mall Grants Program: Funding for this program comes from a set donation from each Nelson Alexander sale and contributions from a major supplier. Volunteer Charitable Foundation committee members review the applications monthly and grants typically range from $500 to $1,500.
S o far in 2024, we’ve donated in the vicinity of $50,000 to a variety of organisations this includes individual families
through Berry Street Family Services (Northeast), Big Group Hug, and Melbourne City Mission (youth homelessness programme) as well as providing support to our staff in their individual fundraising initiatives.
We’ve also established a three-year partnership with the Asylum Seeker Resource Centre’s Foodbank program ($5,000 annually) and continued our bed sponsorship at the Royal Children’s Hospital. Since 2008, our partnership with the RCH has provided $144,484.50 to support their world-class care of seriously ill children. Be sure you read our interview with the new CEO of the Royal Children’s Hospital Foundation, Ryan Brown, featured on page 22
Foundation Day: E ach year, on Foundation Day, all 15 of our offices donate the professional fee from one auction to a local community organisation or charity. In 2023, we focused on food insecurity, raising a whopping $245,580 for organisations tackling this critical issue.
Mark your calendars Foundation Day 2024 is on Saturday 12th October. Find out more and get involved via our website
S taff Involvement and Volunteering: We have a thriving staff volunteering program in place throughout 2024. Our team is supporting amazing groups like Pets of the Homeless, FareShare, Big Group Hug, ASRC, It’s the Little Things Community and St Mary’s House of Welcome.
O ur first successful campaign this year was a clothing drive for Big Group Hug. Coming up in August, we have Share the Dignity’s campaign to fight period poverty.
Our vision for the future is clear: we’re dedicated to helping our local communities thrive, and will continue to work towards this commitment through our small grants, volunteering and annual Foundation Day.
Ryan Brown CEO of The RCH Foundation
Charitable Foundation Interview
A Conversation with The RCH Foundation
The Nelson Alexander Charitable Foundation is proud of its longstanding partnership with The Royal Children’s Hospital (RCH) Foundation.
This collaboration aligns with our core values of “Youth, Education, and Alleviating Disadvantage.”
The RCH is a cornerstone of our community, providing exceptional care to sick and vulnerable children for over 150 years.
T he Power of Community Care
Chances are, we all know someone who has benefited from the RCH’s expertise, whether for a brief stay or a more complex medical situation. The hospital’s impact extends far beyond its walls, touching countless lives within our community.
M eet the RCH Foundation Chief Executive Officer (CEO)
R yan Brown, recently appointed CEO of the RCH Foundation, brings a wealth of experience to his new role after joining the organisation in 2017. His leadership has been instrumental in securing philanthropic support and fostering strong relationships between the hospital and its donors.
T he RCH Foundation’s Impact
• Life-saving Equipment and Technology: Ensuring the RCH has the most advanced tools to provide exceptional care.
• Groundbreaking Research: Supporting innovative research that leads to improved treatments and outcomes.
• Developing Medical Minds: Investing in programs that nurture the next generation of healthcare professionals.
• Patient and Family-Centered Care: Creating a supportive environment that prioritises both the child’s well-being and the emotional needs of their families.
We recently had the pleasure of speaking with Ryan Brown, CEO of the RCH Foundation. We discussed the significant life-saving impact the RCH has on our community, and the diverse range of care offered, from cutting-edge research to programs that provide parents with much-needed respite during their child’s treatment. We also explored the impact of support from the Nelson Alexander Charitable Foundation and the wider community on their ability to support children and their families.
Kerryn: Ryan, lovely to meet up with you today. How has the long-term support of the Nelson Alexander Charitable Foundation enabled the RCH to provide the excellence of care that it is renowned for?
R yan: Nelson Alexander has been fundraising for the RCH for the past 20 years and through your generous support, you’ve donated in the vicinity of $145,000. Whether it is volunteering or funding a program, whenever we walk through the hospital, we can see firsthand the impact that the Nelson Alexander Charitable Foundation has had on seriously ill children. This impact is visible in various departments such as trauma, oncology and mental health, along with diabetes and neuroscience research. We are very grateful for all the support.
Kerryn: Ryan, are there any specific examples of where the Nelson Alexander Charitable Foundation funding has had a major impact on the RCH?
R yan: Yes, I think Nelson Alexander should be really proud of their legacy of supporting the hospital over the last 20 years and hopefully for the next 20 years. Nelson Alexander has provided annual support via our bed sponsorship program, and in 2025 will be supporting the ChIPS program (Chronic Illness Peer Support), which was set up to support teenagers with chronic illness.
O ne important aspect funded by your philanthropy is allowing teenagers to go away on camps and have that peer support network around them that enhances their quality of life.
Kerryn: Thanks, Ryan, for your time today. I really appreciate talking to you about the impact the Nelson Alexander Charitable Foundation has had on the RCH . It’s a great pleasure and a great collaboration.
R yan: Thank you. We appreciate the ongoing support from the Nelson Alexander Charitable Foundation and look forward to our continued collaboration.
T he Nelson Alexander Charitable Foundation values its partnership with the RCH Foundation. Together with our community, we are committed to ensuring that our children have access to the best possible healthcare, fostering a brighter and healthier future for all.
From left to right: Ryan Brown—CEO of the RCH Foundation, Kerryn Donchi—Nelson Alexander Charitable Foundation Coordinator, and Kate Dear—RCH Foundation Corporate Engagement Manager
Sugar Rush—Nelson Alexander’s Uoo Uoo in support of the RCH 150th birthday Art Trail
Showcasing an inspired extension by Ben Lance Architects, this captivating Californian Bungalow delivers an idyllic family lifestyle with its flexible floorplan, first-class renovations and prized location on the edge of Brunswick.
Directly opposite a reserve in the tightly-held Peppercorn Estate, this distinctive four-bedroom two-bathroom home presents a wonderful family lifestyle opportunity with its free-flowing design, impeccable surrounds and prized Strathmore Secondary College zoning.
Megan Wilson Head of Property Management, at Nelson Alexander, Kew
An Expert Perspective
Embracing Opportunities in Melbourne’s Rental Market
“Melbourne’s investment property market offers immense possibilities—however, navigating this dynamic landscape requires a strategic approach that considers the needs of all parties involved. As an experienced property management expert, I am keen to share my insights on the current trends and opportunities shaping the Melbourne rental landscape”.
—Megan
For investors, meticulous research is paramount. Beyond interest rates and property values, delving into the demographics of potential renter pools is essential. Are there universities or schools nearby? What amenities attract young professionals or families? Understanding the local rental market is crucial for maximising returns.
Additionally, be sure to consider features that resonate with modern renters, such as secure parking and dedicated work-from-home spaces. Upgrading fittings and furnishings can further enhance your investment’s appeal and offer depreciation benefits.
In Melbourne’s inner-city market, a steady influx of international students and young professionals necessitates catering to their preferences. Ensuring open communication and fostering a positive relationship with your renters will go a long way to maintaining a successful investment.
For renters, finding suitable properties might seem overwhelming at times. Expanding your search parameters, where possible, can unlock new possibilities. If you need a work-from-home space, considering a study nook rather than a two-bedroom unit could make all the difference.
Alternatively, explore the option of widening your suburb search—you might find a location offering more green space or a backyard. A little bit of flexibility can be key to finding a property that caters to both your needs and budget.
Understanding current market trends and renter preferences is also crucial for sellers looking to effectively position their properties for sale. Highlighting the unique benefits of the location, such as proximity to parks, family-friendly amenities, or vibrant community features, can greatly enhance the appeal of your property for a potential investor.
The post-pandemic landscape has ushered in an era of improved technologies, streamlined processes, and a newfound appreciation for empathy and patience within the real estate industry.
By working together, adapting to changing realities, and understanding the needs of all stakeholders, successful outcomes can be achieved for everyone involved in the Melbourne rental market.
At Nelson Alexander, our trusted property management team boasts a proven track record, connecting over 40,000 customers annually with their perfect place. With over 16,500 properties under our management and the lowest average days on market in our trade area, we possess the expertise and local market knowledge to help you achieve your real estate goals.
Please contact your local Nelson Alexander office or visit our website if we can assist you with any of your leasing needs.
Chris Tolhurst Journalist
Current Market Update
Market Conditions in Melbourne Favour Property Investors
Current market conditions strongly indicate that it’s a very good time to buy an investment property in Melbourne.
That’s partly because prices for entry-level properties in the inner-city (such as period cottages below $1.4 million and apartments below $700,000) remain fairly flat.
The same is true of prices in many middle-ring suburbs in Melbourne’s north and east.
Data from CoreLogic and other property analyst groups show that residential property price growth across the Melbourne middle market has been largely static for the past year. Currently, prices are not inflating like they are in most other capital cities. These stable market conditions make it an optimal time for owner-occupiers to sell and then buy their next home, as well as for new investors who are keen to purchase property that will outperform the average.
In a flat market, it’s easier to buy real estate at realistic prices because there’s more supply than demand. There is also heightened market transparency, which assists buyers to spot value. In a boom market almost any price a vendor puts on a property results in a sale, so the chances you’ll pay an inflated price are much greater.
If you have been considering buying an investment property, you should be aware of the factors likely to influence future price growth, as well as the tax and wealth-creating advantages that flow from property investing. These include:
Negative gearing
By using negative gearing, you offset the losses from an investment property against a salary to generate a tax deduction.
The percentage able to be claimed back is based on investors’ marginal tax rate, so the higher a taxpayer’s income the more effective negative gearing will be. The biggest beneficiaries of negative gearing are Australians who earn $180,000 or more a year.
Strong rental growth
Nelson Alexander Head of Property Management, Martin Sizer, says in the past 12 months the company has experienced rapidly increasing rent values across its network.
“Rents have been going up,” he says. “So, if you are an investor who can hang tight, you are arguably getting better returns than ever. The rise in rent values offsets some of the increase in costs, such as interest rates and land tax.”
Depreciation
Investors often have the potential to write-off depreciation against taxable income but haven’t been given the necessary paperwork on depreciation allowances by the previous owner of a property. In other cases, building developers will provide less-than-accurate depreciation reports to potential buyers.
These reports can be incomplete and include “guesses” about values that may be wide of the mark. It’s well worth having them checked by an independent quantity surveyor.
Supply rises
In winter, the supply of new property listings usually slows significantly but this is less evident this year. Over the month of May, Melbourne listings were up 34.8 per cent, according to CoreLogic data, compared with this time last year. And listings are up 9.6 per cent above the five-year average.
One reason for this is the flat rate of property price growth across Melbourne. Prices have jumped up sharply in other cities over the last 12 months. In Western Australia, prices are up 20 per cent, and seasoned property market observers recognise that Melbourne market values will eventually bounce up as well.
Property taxes
Another dynamic producing high vendor activity in Melbourne, are changes to State Government property taxes, which are encouraging some investors to sell. Cost of living pressures combined with higher interest rates have also led investors to offload properties, while some older investors are simply selling to free up cash for retirement.
Conscious investors consider things like land tax as part of the regular costs of owning property, just like budgeting for maintenance or hiring a property manager.
Low vacancy rates
Across the Melbourne real estate industry, sales teams have been selling properties off their property management rent-rolls. In many cases, these properties are apartments, and they are often being purchased by first-homebuyers and other owner-occupiers rather than by investors.
This situation, coupled with strong population growth in Melbourne, is helping to sharply reduce rental vacancy rates—a major plus-factor for any investor.
“Nelson Alexander’s vacancy rate is hovering around 1 percent, or just below that, depending on the suburb. It’s important to note that low vacancy rates and high rents work to ‘de-risk’ an investment property.”
Population growth
Investors need to think of residential property as a mediumto long-term investment. Studies show that over the past 120 years, residential property prices in Melbourne have doubled, on average, every 10 years.
This powerful growth is likely to continue, given the positive outlook for a population boost in Melbourne.
Victoria’s population grew by 181,800 in the 2022/23 financial year—more than any other state in Australia.
Land availability
Leading demographer Bernard Salt believes the strong growth in Victoria’s population over the 2023 financial year was partly a ‘snap back’ from the loss of people during the pandemic. Victoria was hardest hit and it makes sense that it is rebounding strongly.
Mr Salt says, the availability of land on Melbourne’s outskirts is much greater than in most other capital cities, especially Sydney, where future growth will be constrained by geographic barriers.
He also says the enviable lifestyle Victoria provides is highly appealing. Also noted is migration as an important driver for population growth in Victoria; “Migration is an important driver for population growth in Victoria, there is a strong recovery in the overseas student market and then there is also strong growth from overseas (migration).”
Strategic property selection
Selecting the right property is crucial for maximising the performance of your investment. A poor choice, due to location, amenities, high ongoing costs, or other factors, can significantly hinder returns. The ideal property offers the potential for steady rental income and long-term capital growth. By investing in a well-located property with strong rental prospects, you’re laying the groundwork for a successful investment journey.
Read more at nelsonalexander.com.au/news
Andrew Stone Property Analytics
Your Local Market
Merri-bek, How Has Your Area Performed?
Over the last 40+ years, house prices in Merri-bek council have only fallen a handful of times.
Two of the biggest price decreases have occurred in the last five years—that’s unusual. It feels like market cycles have sped up, but what does it mean when people say the real estate market is cyclical?
Median $ House Price Change
In simplest terms, it means that property prices ebb and flow over time. There are periods of growth, stagnation and decline— that’s what a cycle is. Defining the exact start and end of these cycles is tricky, and the highs, lows and durations can vary widely.
The graph below shows how house prices in Merri-bek have trended over the last four decades. The graph identifies periods where house prices have fallen, which can be considered as potential beginnings or ends of a cycle. Alongside each period, we’ve noted the dominant economic theme of the time.
The graph illustrates Merri-bek’s median house price changes over the past 40 years, highlighting periods of upward/downward trends (potential housing cycle turning points) with context on dominant economic themes. (Source: Property Analytics, April 2024)
Entire
Asset prices surged in Australia and around the world during the 1980s. That boom period came to an end in the early 1990s with a sharp correction. A brief recovery in house prices was cut short by a rapid rise in interest rates—nearly 3% in just six months. This resulted in one of the longest periods of stagnation the Australian property market had ever seen.
Merri-bek house prices fell by 4% between the 1989/90 peak and the 1996 low.
The market recovered, ushering in a long period of growth that ran from 1997 to 2008. During this time, house prices soared by a staggering 230%. While growth fluctuated throughout this period, looking back, it was a golden era for home owners.
The Global Financial Crisis rocked every market around the world in 2008/09. Leading into it, Merri-Bek price growth was really strong, but that stopped seemingly overnight. The correction proved shortlived though as many investors sought security in bricks and mortar.
The GFC exposed fundamental issues in some financial systems across the world.
The EU Sovereign Debt Crisis unfolded 13,500 kilometres from Australia but it undoubtedly played on buyer confidence
here. From the early 2011 peak, house prices in Merri-Bek dropped by 9% come mid 2012.
A new growth cycle emerged and Merri-Bek house prices grew by about 58% from mid 2013 to mid 2018. This cycle came to an end primarily due to a domestic initiative.
The Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry uncovered some really concerning practices and made some prudent recommendations. But, as is often the case with big government initiatives, it led to some serious unintended consequences.
Obtaining financing became significantly more difficult for homebuyers, investors, and developers. Extensive revisions to loan application processes and eligibility criteria created bottlenecks within bank bureaucracies. This resulted in a sharp decline in the number of loans approved, causing a surplus of properties for sale compared to the demand from buyers who relied on financing.
The market adjusted, and a new shortlived period of price growth emerged. Then inflation surged globally following
COVID-19, and the RBA increased interest rates by over 4% in a year and a half.
House prices in Merri-Bek fell by 10% from the 2022 peak. A recovery has recently begun.
What does this history tell us?
Firstly, market downturns don’t occur very often, and when they do, they are usually short lived. They typically correspond with global economic events that impact confidence, and by domestic forces that impact borrowing. The overwhelming trend in house prices has been upwards.
And, lastly, each of the recent two periods of price drops occurred for understandable reasons. However, the severity of each and the fact that they ensued so close together, is unique.
If it feels like the property market has been difficult to navigate in recent years, it’s because it actually has been. You can study the data for historical insights, but if you are considering buying or selling a property, it’s always best to enlist the help of a local professional who sees emerging trends on the ground in real time.
Above Figures | Median house prices rounded to closest ten-thousand. Median unit/townhouse price rounded down to nearest thousand. Compared to last year rounded to nearest 1 decimal place. Note: The median is calculated for all suburbs in Banyule. However, some data points are not included in the table below. Whilst we believe all information within this document to be accurate and true, we ask that you conduct your own due diligence. All data provided current as at 30/04/24. * = Low sales volumes - Values statistically unreliable. ^ = Where a suburb sits outside the stated municipality, we have included it for commentary purposes, Insuff Data = Insufficient Data Available, YTD = Year to Date, YOY = Year on Year, Avg. = Average.
