January 2024 Monthly Report

January Report

Our purpose.

To create a place where we can facilitate our people’s growth.

Our values.

Family.

Our colleagues are our broader family, assist when needed and when in need.

Mutuality.

Respect our colleagues and our clients as you would like to be respected.

Embrace change.

Strive for excellence; be open minded and willing to embrace change.

Realising potential.

Unlock your full potential, encourage and support your colleagues.

Health and energy.

Work towards being well balanced within yourself.

January report

From our corporate director Dean O’Brien

Hi All, In the latest update on Australia's housing market, CoreLogic reports a modest increase in national home prices by 0.4% for January. However, Melbourne diverged from this trend, experiencing a slight decline of 0.1% in home prices, marking the second consecutive month of depreciation in the city's housing values.

The economic landscape received a notable update with the release of December quarter inflation figures, which registered at a two-year low of 4.1%.

This development, announced last Wednesday, provides the Reserve Bank of Australia (RBA) with the flexibility to maintain interest rates at their current level for the immediate future, sparking discussions on the timing of potential rate cuts in 2024.

The Commonwealth Bank of Australia (CBA), the country's largest lending institution, is projecting a series of interest rate reductions over the next two years. Specifically, CBA anticipates three rate cuts in 2024, followed by an additional three in 2025. This would result in a decrease in the RBA's cash rate to 3.6% from the current 4.35%, representing a reduction of three-quarters of a percent.

Concurrently, CBA forecasts a 5% increase in national dwelling prices in 2024.

Focusing on Melbourne's housing market, the city experienced its busiest auction weekend of the year on February 3, with 608 homes going under the hammer and achieving a clearance rate of 71.9%.

The OBrien real estate network alone auctioned 34 homes, achieving a clearance rate of 73.5%.

However, Melbourne's performance was not without its challenges. It ranked as the second-worst performing capital city in January, trailing behind Hobart. Despite this, the collective performance of capital cities was positive in January, with an average increase of nearly $2000 in home prices. .

This period also saw significant activity in both the US and Australian stock markets, with investors breaking all-time records. In contrast, Regional Victoria's home prices remained stagnant, with neither increases nor decreases reported. This could be attributed to investor caution, possibly influenced by the introduction of a 10-year Covid Land Tax levy in Victoria from January 1 this year.

The rental market has also seen significant developments, with vacancy rates dropping to alltime lows of just under 1%. This tightening of housing supply is expected to persist, as evidenced by a sharp 18.4% decrease in Victoria's dwelling approvals in December, a figure that significantly surpasses the national decline of 9.5%, according to the Australian Bureau of Statistics.

It's crucial for to stay informed and consider seeking independent legal, financial, taxation, or other forms of advice to align with their unique investment goals and circumstances.

Regards, Dean O'Brien Corporate Director

We sell more.

A snapshot of last moths sales

Average sale price

$796,650

Sale price High

Low

$2.5M

$300K

Average days on market

Price range

Sale price

47 Days on Number market of buyers

Address

Suburb

1/5 Mark Street

Bayswater

3

2

2

$690,000 - $759,000

$740,000

57

142

2/18 Maple Street

Bayswater

4

3

2

$950,000 - $1,045,000

$975,000

62

43

37 Hartsmere Drive

Berwick

4

2

2

$880,000 - $950,000

$940,000

14

30

20 Lorikeet Drive

Berwick

3

2

3

$900,000 - $990,000

$965,000

21

14

68 Quarry Hills Drive

Berwick

4

2

3

$955,000 - $1,050,000

$1,025,000

64

24

1 Lyndal Court

Berwick

3

2

4

$675,000 - $735,000

$710,000

29

70

21 Kestral Close

Blind Bight

4

2

2

$880,000 - $930,000

$900,000

11

3

5 Faraday Street

Boronia

4

2

1

$900,000 - $990,000

$1,030,000

30

46

3/184 Boronia Road

Boronia

2

2

1

$550,000 - $580,000

$562,000

106

82

3/4 Park Crescent

Boronia

3

2

2

$730,000 - $803,000

$790,000

14

21

1/52 Central Avenue

Boronia

3

1

1

$640,000 - $704,000

$710,000

51

58

31 Thornbill Drive

Carrum Downs

3

2

2

$690,000 - $750,000

$760,000

21

33

20 Trainers Way

Clyde North

3

2

2

$570,000 - $610,000

$600,000

22

64

32 Sunningdale Crescent Cranbourne

4

2

2

$975,000 - $1,025,000

$1,075,000

15

12

23 Sarno Court

Cranbourne

3

2

2

$580,000 - $630,000

$637,500

15

45

1/107 Narre Warren Road

Cranbourne

3

1

2

$435,000

$435,000

21

35

44 Circle Drive North

Cranbourne

4

2

2

$640,000 - $700,000

$670,000

21

7

5 Shiels Street

Cranbourne East

3

2

2

$690,000 - $730,000

$730,500

23

16

58 Renlik Circuit

Cranbourne North

2

1

1

$490,000 - $520,000

$497,500

23

21

5 Burke Court

Cranbourne North

3

1

4

$595,000 - $650,000

$603,100

42

18

We sell more.

A snapshot of last months sales Address

Suburb

Price range

10 Fiona Drive

Cranbourne South

4

2

2

1450 Westernport Highway Cranbourne South

5

4

8

$2,500,000

2/1-3 Herbert Street

Dandenong

2

1

1

13 Glencoe Grove

Dandenong North

3

2

7 Saxon Road

Drouin

4

36 Campbell Street

Garfield

56 Jefferson Road

Sale price

Days on Number market of buyers

$1,680,000 - $1,800,000 $1,550,000

55

12

$2,500,000

0

1

$290,000 - $305,000

$300,000

21

14

2

$680,000 - $740,000

$814,000

27

54

2

2

$590,000 - $650,000

$625,000

162

23

3

1

1

$550,000 - $605,000

$594,000

14

16

Garfield

4

2

2

$795,000 - $845,000

$810,000

252

23

8/27 Jefferson Road

Garfield

2

1

1

$470,000 - $495,000

$480,000

35

24

2/44 Verona Drive

Hampton Park

2

1

1

$530,000 - $580,000

$543,000

47

10

36 Red Wattlebird Crescent Langwarrin

4

2

2

$1,320,000 - $1,360,000 $1,320,000

77

70

20 Wodalla Place

Lyndhurst

4

2

2

$680,000 - $748,000

$690,000

145

64

Unit 1/1 Argus Court

Narre Warren

3

2

1

$550,000 - $590,000

$550,000

70

49

5 Manhattan Mews

Narre Warren

3

2

1

$580,000 - $638,000

$570,000

99

36

15 Greenwood Court

Narre Warren East

4

2

8

$1,650,000 - $1,750,000 $1,570,000

0

1

29 Forster Drive

Nyora

4

2

8

$1,050,000 - $1,150,000 $1,000,000

62

11

19 Mallard Avenue

Officer

3

2

1

$550,000 - $605,000

$590,000

43

77

62 Pommel Street

Pakenham

4

2

2

$580,000 - $620,000

$606,000

29

47

56 Dusseldorp Avenue

Pakenham

4

2

2

$695,000 - $750,000

$710,000

14

10

56 Bronzewing Street

Pakenham

4

2

2

$680,000 - $710,000

$710,000

14

38

13 Atlantic Drive

Pakenham

3

1

2

$495,000 - $544,500

$485,000

87

18

1/3 Park Orchard Drive

Pakenham

3

1

1

$446,000 - $490,000

$460,000

66

35

20 Balaton Drive

Pakenham

4

2

2

$665,000

$665,000

0

1

3 Vaughan Court

Pakenham

4

2

3

$630,000 - $680,000

$665,000

34

61

25 Longview Road

Warragul

4

2

2

$800,000 - $880,000

$890,000

42

5

We lease more.

A snapshot of last months sales Average weekly rent.

$523

Average monthly rent.

$2,258

Rental price p/w.

High

Low

$780

$410

Number of suburbs leased in.

22

Leased price p/w

Leased price p/m

2

$630

$2,737

2

1

$560

$2,433

2

1

1

$430

$1,868

Berwick

4

2

2

$650

$2,824

8 Sing Crescent

Berwick

3

2

2

$550

$2,389

1 Konac Court

Berwick

3

2

2

$560

$2,433

46 Allunga Parade

Berwick

3

2

2

$550

$2,389

14 Dixon Grove

Blackburn

3

1

1

$500

$2,172

3/37 Chandler Road

Boronia

2

1

1

$450

$1,955

20 Rothan Avenue

Boronia

3

2

3

$625

$2,715

11 Ridgeline Drive

Botanic Ridge

6

2

2

$780

$3,388

11 Milford Street

Clyde

4

2

2

$580

$2,520

30 Mattamber Street

Clyde

3

2

1

$480

$2,085

8 Rawls Street

Cranbourne

4

2

2

$575

$2,498

22 Virginia Street

Cranbourne

3

1

1

$500

$2,172

9 Evelyne Avenue

Cranbourne

3

2

3

$495

$2,150

5 Mercury Road

Cranbourne East

4

2

2

$550

$2,389

Unit 14/10-20 Mickleham

Cranbourne North

3

1

2

$460

$1,998

9 Hunter Court

Cranbourne North

3

1

1

$515

$2,237

1/56 Elizabeth Street

Cranbourne North

3

2

1

$440

$1,911

Address

Suburb

1/13 Church Street

Bayswater

3

2

4 Fairlawn Place

Bayswater

3

Unit 5/12-14 Elmhurst Road

Bayswater North

37 Lemongrove Way

We lease more.

A snapshot of last months sales

Leased price p/w

Leased price p/m

2

$510

$2,216

2

1

$480

$2,085

2

1

1

$420

$1,825

Endeavour Hills

3

2

1

$460

$1,998

2 Rossiter Avenue

Endeavour Hills

3

1

2

$500

$2,172

13 Tiarne Crescent

Hampton Park

3

2

1

$480

$2,085

8 Sybella Avenue

Koo Wee Rup

3

1

2

$550

$2,389

6 Glenbrook Crescent

Lynbrook

4

2

2

$630

$2,737

25 Kent Road

Narre Warren

5

2

2

$630

$2,737

7/31-45 Vimini Drive

Narre Warren

3

1

2

$490

$2,129

11 Beverly Court

Narre Warren

3

1

2

$495

$2,150

4 Rosaleen Court

Narre Warren

3

2

2

$450

$1,955

4 Lighthorse Crescent

Narre Warren South

3

1

1

$460

$1,998

43 Sneddon Drive

Narre Warren South

4

2

1

$550

$2,389

8 Pinot Way

Pakenham

3

2

2

$450

$1,955

27 Harlesden Circuit

Pakenham

2

1

1

$410

$1,781

11 Stanhope Place

Pakenham

4

2

2

$550

$2,389

4/35 Sunbeam Avenue

Ringwood East

2

2

1

$500

$2,172

11 Karabil Close

Scoresby

3

2

4

$510

$2,216

1 Ingrid Street

Scoresby

3

1

1

$480

$2,085

41A Bayview

Tooradin

3

1

0

$520

$2,259

55 Tate Avenue

Wantirna South

3

2

2

$540

$2,346

Address

Suburb

51 Raisell Road

Cranbourne West

3

2

40 Jupiter Crescent

Cranbourne West

3

9a Shetland

Endeavour Hills

7a Nadia

Victoria at heart of housing shortage as nation’s home building woes expected to persist for several years

“Compounded by record levels of migration, Australia’s housing undersupply is expected to persist for several years.”

However, Victoria might be better positioned than many other states to reach higher new home construction levels in the coming years, as its capital city had the nation’s highest supply of land for development and also offered more affordable land than was available around Sydney.

Urban Development Institute of Australia Victorian chief executive Linda Allison said with interest rates high, pressure on construction costs and the availability of trades people challenged, low numbers of homes being approved in December weren’t surprising.

ustralia’s housing shortage is expected to “persist for several years” after the nation’s new home market recorded its softest annual approvals in more than a decade in 2023.

Authorities signed off on just 162,194 homes around the country, a 29,525 (15.4 per cent) reduction from 2022 and far below record levels in 2021.

And a struggling Victoria is leading the figures down, with the 3559 new builds given the green light in December at their lowest level for the month since 2011.

Australian Bureau of Statistic figures show just 3559 homes were green lit for construction across the state in the final month of the year, with the only softer month in 2023 being January when authorities ticked off just 2895 new builds.

Often one of the year’s busier months, there were more than 5000 homes approved in both of the prior two Decembers.

More than 6000 were given the nod for construction in December 2016 and 2019.

The last time December approvals were below 3500 was in 2011.

Oxford Economics Australia senior economist Maree Kilroy said Victoria’s decline, along with that of NSW’s, was doing a lot of the “heavy lifting” for the nation’s tumbling construction numbers.

Ms Kilroy said there was a pipeline of work not yet done around the country that would provide a short-term boost to housing supply over the next six months, but that it would be short lived.

“The trajectory of dwelling approvals points firmly to a softer 2025 for completions,” Ms Kilroy said.

“I think it’s a fairly expected result when you consider the various pressures on the housing and construction market at the moment,” Ms Allison said.

“We would be cautiously optimistic that we will see these figures improve as the year progresses. But it will take some time for that to happen.” article source : www.realestate.com.au

Our network 43 offices and growing

Melton

Sydenham Preston / Reservoir

St Albans Deer Park Sunshine

Ringwood Blackburn Vermont Wantirna

Corporate Brighton Oakleigh Bentleigh

Werribee

Croydon

Tecoma / Belgrave / Olinda

Endeavour Hills Narre Warren Keysborough

Berwick

Chelsea Carrum Downs Seaford Cranbourne Frankston Langwarrin

Pakenham

Mornington Somerville

Torquay

Hastings

Rye

Cowes

San Remo

Wonthaggi Northern Victoria

Eastern Victoria

Wodonga Wangaratta Alexandra

Far North Queensland

Bairnsdale Drouin Warragul Cairns & Beaches

The quality of our service stems from the importance we place on the people behind our network.

A multiple REIV award winning company

Scan to view our in-depth suburb reports

Foundation obre.com.au