Woodards Northcote / Preston / Thornbury Market Snapshot

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Market Snapshot

April 2024

Darebin Edition

The Director’s Cut

Northern Stars Display a Dynamic Start to 2024

The start of the year brought an energetic pulse to our local market, fueled by a surge in buyer interest despite lower stock levels. This increased buyer enthusiasm has sparked firm competition, culminating in significant sales achievements that bode well for the market’s direction in 2024.

Two properties sold on the same auction day in late February stood as testaments to this market optimism. A magnificent four-bedroom Californian bungalow at 25 Oxford Street, Northcote, exceeded its price guide of $2.1$2.2 million to sell for $2.42 million. Meanwhile, a charming three-bedroom house set in a parkside precinct at 5 Jones Street, Thornbury, fetched $1.35 million, surpassing its expected range of $1.05-$1.15 million.

As we look ahead, the forecast suggests that interest rates will stay consistent, with property availability remaining tight and buyer competition strong. This scenario presents an ideal window for homeowners pondering a sale. The prevailing conditions of fewer listings and steady interest rates create a seller’s market, which is particularly advantageous as we enter the typically quieter winter season.

Focusing on specific areas, the northern suburbs, particularly Reservoir and Northcote, are expected to see heightened interest. Reservoir offers exceptional value, while Northcote continues to draw demand for its turnkey properties, highlighting the ever-shifting preferences within our market.

“Focusing on specific areas, the northern suburbs, particularly Reservoir and Northcote, are expected to see heightened interest.”

Metro Melbourne Property Outlook

Over the last couple of years, Melbourne property buyers and sellers have, as a collective, undoubtedly felt like the annoying kid in the back of the car asking mum and dad driving in the seat in front - “Are we there yet?” The parents in this metaphor are obviously the real estate agents, the banks, and the RBA.

And that is the big question we’re all still pondering – is the Melbourne property market there yet? Or slowly getting there anyway? With each passing day in 2024, all indicators are pointing to a significance resurgence in the metropolitan market, with the next few months looking like we could realistically reach the destination.

Strong March number indicates a bumper rest of autumn and winter ahead

If the statistics are anything to go by, Melbourne is in store for a bumper rest of autumn and winter selling season.

Throughout March, the Real Estate Institute of Victoria (REIV) reported 4,085 properties auctioned, with 2,476

properties sold and only 766 passed in. 587 properties were sold prior to auction, with the clearance rate looking very strong at 78.2% throughout the month. These numbers are even more impressive with March featuring the Moomba long weekend which always disrupts weekend auction and sales, and the Easter long weekend which was earlier than previous years.

In terms of home value, Melbourne sits at a median home price of $778,882 as of March 31, which is up 3.2% over the last 12 months. While the median home price was slightly down over the first quarter, it did rise 0.27% according to PropTrack in the month of March alone. With high demand for properties and a market looking more stable by the day, confidence remains high for the next few months.

One streak ends and another one begins

The streak of RBA rate rises has ended with the hopes of a new streak potentially on the horizon. It has been since November 2023 when the RBA dragged the official cash rate up to 4.35%, but since that time there have been no rate rises as of April 2024. Even before the November hike last year, the last rise had been in June 2023. That translates to only two rates rises in the last ten months.

Mortgage payers will now hope for the start of a new streak of the cash rate remaining untouched for the foreseeable future, before the RBA is predicted to cut rates towards the end of this year and into 2025. “We have 75 basis points of rate cuts in our profile in late 2024 and a further 75 basis point of easing in the first quarter of 2025, which would

take the cash rate to 2.85 per cent,” said Gareth Aird, Commonwealth Bank of Australia’s Head of Australian Economics to the ABC recently.

With talks of the RBA holding off on cutting rates before the US Federal Reserve does (which was expected in July 2024 but has now been predicted for September 2024), Angus Coote who is the co-founder of Jamieson Coote Bonds believes the RBA could cut rates as early as August. “The US economy is not slowing as much as the rest of the world, but they do not have the benefit of the transmission mechanism of a mainly floating rate mortgage market that we have in Australia,” Mr Coote told the Australian Financial Review “Given the US exceptionalism, the RBA can definitely cut before the Fed.”

Is a change in stamp duty tax on the cards?

Speaking at the launch of the Urban Development Institute of Australia (UDIA) back towards the end of March, Victorian Treasurer Tim Pallas hinted at a major reform when it comes to stamp duty tax. Victoria is currently one of the

most expensive states for stamp duty, with buyers paying anywhere from 1.4% to 6.5% on the value of a property upon purchase.

While completely scrapping the tax is not on the cards (which he has said, if it were scrapped, would have a $30bn hit to the budget), the treasurer noted that he and the Victorian Government were very open to reform on stamp duty. “I do recognise that by removing stamp duty and stopping that one-off transaction, you liberate a lot of people to be able to move around the economy to better suit their material circumstances,” said Mr Pallas.

While the Victorian Government will consider many options, many experts say that replacing the stamp duty tax with a reformed land tax is a smart option. The Victorian Government led by Jacinta Allan have already brought in a bill (effective July 2024), which abolishes stamp duty for commercial and industrial properties, and have replaced it with a broad-based land tax. This might very well be a reform (or version of) that could be used for residential properties in the near future. We’ll have to wait and see.

$928,500 Median Prices Houses 78% Auction Clearance $634,500 Units 30 Average Days on Market 18,144 Total Properties Sold MARCH QUARTER 2024

City of Darebin

Source: REIV

SPOTLIGHT SALE

25 Oxford Street Northcote

Steeped in history, this glorious Californian Bungalow home c1900’s sold for $2,420,000.

Suburb Median Price Number of Sales % Change Days on Market Alphington $2,400,000 17 19.5 24 Bundoora $860,000 56 -0.6 27 Fairfield $1,626,000 11 -5.5 25 Kingsbury - 5 - 25 Northcote $1,755,000 57 4.2 24 Preston $1,242,500 56 1.8 25 Preston East - - -Preston West - - -Reservoir $950,000 103 3.3 26 Thornbury $1,485,000 34 5.1 24 73% Clearance Rate 298 Properties Sold 25 Days of Market $4,100,000 Highest Sale $1,300,000 Darebin Median Houses

MEDIAN SALE PRICE MARCH QUARTER 2024

79% Clearance Rate 317 Properties Sold 25 Days of Market $1,550,000 Highest Sale $630,000 Darebin Median Units
Suburb Median Price Number of Sales % Change Days on Market Alphington $725,000 13 -14.7 24 Bundoora $456,500 43 -2.9 58 Fairfield $727,000 20 32.2 24 Kingsbury $593,750 11 - 40 Northcote $615,000 51 -12.1 30 Preston $624,000 84 18.3 25 Preston East - - -Preston West - - -Reservoir $640,000 108 4.1 26 Thornbury $627,500 39 0.4 25

Melbourne’s Life Beyond The CBD

Look beyond Melbourne’s energetic heart to admire a rich mosaic of neighbourhoods, each with unique character and local charm. From the leafy serenity of the East to the beachy vibes of the South, these areas provide a colourful backdrop for varied lifestyles.

Prestige and Peace of the Eastern Suburbs

Serene suburban living defines the Eastern Suburbs. Predominantly home to established families and professionals, these neighbourhoods are known for leafy streets, prestigious schools, and substantial houses. Camberwell, a prime example, is home to expansive, often heritage-listed properties enveloped by magnificent gardens.

Despite its peaceful ambience, it’s just a stone’s throw from downtown Melbourne

The Vibrant North’s Bohemian Soul

The Northern Suburbs embody Melbourne’s artistic and bohemian spirit. Known for its eclectic mix of cultures, it attracts artists, musicians, and young entrepreneurs. Thornbury stands out for its vibrant high street buzzing with cafes, bars, and an alternative music scene. This suburb is a haven for those who value character and convenience, with excellent infrastructure keeping its community wellconnected.

Urban Comfort and Coastal Bliss on the South East

A sanctuary for families and professionals alike unfolds in Melbourne’s South East, an area marked by a harmonious blend of tranquillity and urban amenities. Bentleigh stands out in this enclave, boasting top-tier schools, lively cafes, lush green spaces, and beautiful homes. Here, suburban comfort meets the perks of coastal proximity and easy city access, providing residents with the best of all worlds.

Finding Paradise on the Peninsula

The Mornington Peninsula is Melbourne’s seaside escape, where natural splendour meets upscale living amidst a laid-back coastal setting. Its residents range from holidaymakers to permanent dwellers, who reside in varying properties, from grand hinterland estates to classic beach cottages. Alongside its tight-knit community and growing economy, wineries, golf courses, and hot springs complete its picture.

Revisiting Retro For Modern Homes

In today’s interior design world, the resurgence of retro styles is making its presence known. With a nod to nostalgia, homeowners and designers alike turn to the past for inspiration, weaving the enduring charm of yesteryears with the practicality of modern living.

1960s: Mix of Minimalism and Mod

The 1960s are renowned for their emphasis on clean lines, organic curves, and a harmonious blend of form and function. A time when statement lighting fixtures doubled as art pieces, and indoor plants became essential for injecting life into the home. Furniture with slender frames allowed for an airy ambience, reflecting the decade’s desire for sophistication and simplicity.

1980s: The Gloss and Glamour

Marking an experimental era where nothing was over the top, the 1980s saw interior design take a glamorous turn. Details like terrazzo flooring and mirrored surfaces became symbols of opulence. Meanwhile, the integration of technology saw sleek gadgets and entertainment systems become part of the decor, reflecting the decade’s fascination with innovation.

1970s: A Warm and Earthy Escape

Bringing with it a palette of earthy, warm tones, the 1970s saw the embrace of oranges, browns, and greens that mirrored the natural world. This period relished in rich textures, with elements like shag rugs and velvet upholstery becoming staples. The integration of rich wooden accents and the layering of different materials also ushered in cosy and inviting spaces.

1990s: Living Loudly at Home

The 1990s completely broke free from the minimalist trends of the past, steering homes towards a more playful and bold direction. Rooms came alive with an infusion of character, embracing vivid colours and graphic prints across statement wallpaper, eclectic accessories, and striking block colours. After all, this is the era when creativity and self-expression were encouraged.

Period Details to Celebrate Not Cover Up

In a rush to modernise, homeowners often overlook the inherent charm and character found in the period details of their homes. Such features are not just remains of a bygone era but are vital pieces of architectural history. Better yet, for those contemplating selling, highlighting rather than hiding these heritage hallmarks could be a pivotal attraction for buyers.

Brickwork

Period homes often boast beautiful brickwork. While issues like repointing and water damage may need addressing, there are respectful ways to maintain their original construction. The modern trend of exposed brickwork underscores the allure of such features. Designers are even seeking to replicate this “aged” look in new builds, providing all the more reason to showcase these qualities with pride.

Timber Joinery

The detailed craftsmanship found in a period home’s timber joinery, from skirting boards to fretwork, adds irreplaceable value to a home. While restoration can be time-consuming and potentially costly, the authenticity and visual appeal it adds to a property are worthwhile. These characteristics are often highlighted in the sale listings of such homes, indicating their sought-after status.

Open Fireplaces

In period homes, fireplaces are not just heating elements but are pivotal in defining the home’s architectural era with their distinct designs. Even if they are no longer in use, original fireplaces are worth preserving to become stunning room features. They offer a canvas for creativity, whether through re-tiling, applying an eye-catching paint colour, arranging decorative logs, or showcasing art or greenery.

Verandahs

Iconic to Australian homes, verandahs offer both beauty and practicality. Maintaining their original style and alignment with the local streetscape preserves the home’s historical and architectural essence. Moreover, these spaces frequently capture the imagination of potential buyers, picturing themselves enjoying leisure time in this spot. After all, what’s better than unwinding on a verandah with a cup of tea?

Victoria’s Young Guns Revealed

The Herald Sun has revealed Victoria’s top real estate agents under 35. Our very own Matthew Makin, Stasi Adgemis and Alec Stefanoski were featured in the list, selling over $233 mil + worth of houses in 12 months. We sat with each of them and asked them what this recognition meant to them.

Alec Stefanoski

It is truly an honour to be recognised alongside such incredible agents across Victoria. As a younger agent in the industry it can be seem by some as a hindrance, however I see it as the biggest advantage.

Real estate is an energy game and I don’t believe you will ever have more energy in life than you do prior to turning 35.

Achieving some success early has been mostly due to noticing complacency from older competitors and wanting to ensure that we acted in our clients best interests.

Stasi Adgemis

It gives me great pleasure to being placed with some highly talented individuals in Victoria. I am passionate about the industry and driving to succeed doesn’t feel like

a job. Selling your asset is a big decision I am thrilled to be involved in the process.

However, my biggest love is growing and nurturing young talent in the real estate market. We are seeing more and more younger agents coming through who are determined to go that extra mile to achieve success for our clients.

Matthew Makin

I am very humbled to receive the exciting news of being featured in the Top Rankings for Under 35s. Each and everyday I like to think I put my best foot forward to help my clients achieve their best possible results.

I would like to take this opportunity to thank all of my wonderful clients and followers in my career to date and can’t wait to continue striving for great and exciting things in the future. It must be said, this is not an individual award for me. I believe this achievement is possible due to all of the support and efforts my team puts in on a daily basis and would love to thank them for all of their commitment and hard work as well.

Alec Stefanoski Stasi Adgemis Matthew Makin

CEO Sleepout

Team Woodards Sleeping Out To Raise Funds For The Homeless

No one in Victoria should be homeless. That’s why we’re passionate about helping provide housing and support to the most vulnerable members of our community.

A percentage of every Woodards sales commission and every leasing fee is donated to our Foundation where it’s distributed to organisations who assist Victorians who are homeless.

In addition, Woodards is a proud supporter of the CEO Sleepout. The CEO Sleepout is a one-night event over one of the longest and coldest nights of the year.

In 2023, 41 principals, business partners and staff slept out on one piece of cardboard in support of those experiencing homelessness. Collectively Woodards raised over $243,000.

This year, Team Woodards will be sleeping out on 20 June. You can support Team Woodards raise funds for the homeless by donating https://www.ceosleepout.org.au/ fundraisers/woodards2024

Property Investment Update

Despite the struggles of the last couple years when it comes to the Melbourne property market as a whole (and in some parts due to its struggles), now makes it the perfect time to get in the investing game or continue to grow your thriving property portfolio.

With growth in the median property prices in the Melbourne metropolitan areas still well behind other capital cities since COVID-19, coupled with a still soaring demand for rental properties and plenty of exciting suburbs which offer so much upside, Melbourne is poised to once one of the shining investment jewels in the Australian crown.

The rising stars of the Melbourne investment scene

Just last month, Canstar noted Melbourne as a big mover in regard to property investment, rising from 13th to equal 5th across capital and regional cities across Australia (in their Rising Stars report). The country’s leading financial comparison sites also listed ten of the rising stars in terms of suburbs to invest in the city.

Canstar noted inner city suburbs Ascot Vale and Brunswick East as standout options for investors, thanks to their proximity to transport, universities, hospitals, and Melbourne’s CBD. The vacancy rate of both Ascot Vale and Brunswick, which is 1% and 0.7% respectively, is also well below Melbourne’s average. Mitcham and Nunawading in Melbourne’s east were other suburbs of note on the list, thanks also to low vacancy rates as well as high buyer demand.

Oakleigh was another suburb on the rise according to Canstar when it comes to investing. They noted The City of Monash as one of the economic strongholds of Greater Melbourne, and the suburb’s location so close to the renowned Monash University, Monash Medical Centre, and the Victorian Heart Hospital make it very appealing. Oakleigh also enjoys major road and rail links to central Melbourne.

Median Rent Per Week Rental Yield Metro Melbourne MARCH QUARTER 2024 3.1% $550

Your opportunity to buy low and sell high!

Like virtually all capital cities in Australia, Melbourne boomed when it came to median property prices during the COVID-19 pandemic (peaking in March 2022), only to hit a rough patch with the RBA rates hikes of the second half of 2022 and for some of 2023. While most of the other cities in Australia continue to claw their way back, Melbourne has somewhat stalled with its median pricing.

Melbourne has historically always been Australia’s 2nd most expensive major city to purchase a property in (excluding Canberra), and for good reason. Many times awarded the world’s most liveable city, Melbourne offers art, culture, world-class events, and an array of sensational amenities and attractions spread out over a diverse range of appealing suburbs.

Having come back to the pack in terms of median pricing, now surely is the time to take the punt and invest in the Melbourne property market. As the tried and true saying goes, buy low and sell high!

High Street claims ‘The Coolest Street in the world’ title

If you’re an investor looking to go north, you may want to find yourself somewhere around High Street. Running through Preston, Northcote, and Thornbury, High Street was named by publication Time Out last month as the coolest street in the world, beating out Hollywood Road in Hong Kong, Consell de Cent in Barcelona, Chazwa-dori in Tokyo, and East Eleventh in the very hip Austin.

Time Out cited food and drink options such as Casa Nata, 1800 Lasagna, and Northside Wines as what makes it such an appealing strip, as well as music venues The Northcote Social Club, Croxton Band Room, High Note, and Shotkickers.

Low vacancy rates continue on

While March did see an easing when it comes to vacancy rates, it still continues to be tough going for those wanting to secure a rental property. March saw vacancy rates in Melbourne hit 1.12%, marginally up from 1.07% in February. “High levels of migration, primarily across Australia’s capital cities, have driven increased demand for rentals, with the number of vacant homes plummeting by 58% in the cities and 47% in regional areas over the past four years,” said Anne Flaherty, Economist at PropTrack.

The continued low vacancy rates and demand for rental properties could be the reason that Melbourne’s average rental yield hit 3.57% in March, which is the highest gross yield since 2015 according to CoreLogic. With rental yields continuing on an upward trend, coupled with this high desire for rental properties, investors sentiment is only looking positive for the foreseeable future (although not as positive unfortunately if you yourself are looking for a property to rent).

Houses Alphington $890 Fairfield $785 Northcote $750 Preston $615 Reservoir $500 Thornbury $720 Suburbs with the highest median rent Houses Alphington $550 Fairfield $428 Northcote $500 Preston $495 Reservoir $465 Thornbury $445

Your Bedroom

Styling For The Changing Season

As we prepare for the cooler months ahead, it is a great time to redesign your bedroom so that it is cosy, yet functional and inspiring. Well-chosen pieces and thoughtful styling are key to creating a bedroom that embraces your personality whilst providing trans-seasonal comfort.

Function First

Take pause before you begin styling to consider how you will use the space. Do you want to prop yourself up in bed to read a book or watch your favourite tv series? Or do you crave minimalism and ease with paired back, fuss free bed styling? Even the smallest of bedrooms can be broken into ‘zones’ to create areas to sleep, play, work and rest. Think about how you need the space to work.

Turn To Nature For A Theme

If you’re stuck on inspiration, an ideal place to start is by looking outside! You can’t go wrong with the colours of Mother Nature: autumnal rich tones or a sandy beach awash with sea spray. You can always incorporate a beloved theme. Think boho, Scandi, modern or beachy.

Select your core colours and build on from there. But restraint is key. Ultimately, this is a space for sleeping and too much going on can be a distraction. Use storage and shelves to hide away personal items and books, and keep the bedding comfortable and practical.

Neutral furniture is best as it won’t date quickly. Buying quality bed linen ensures that it will stand up to frequent washing and last for many years. Smaller decor pieces, artwork and wall decals can be used to add personal style and bursts of colour.

Add inspiring Layers

There are certain fabrics that aid sleep through their comforting properties. Linen and silk are two of the best fabrics in bedding as they help to regulate the body’s temperature, keeping it cool in summer and warm in winter. Natural fibres like pure wool and cotton, also ensure cosy sleep allowing air flow to circulate whilst maintaining warmth. Adding an interesting throw blanket or woollen pelt will not only elevate the styling but add additional warmth when needed through all seasons. For bed linen, cotton layers comfort even the hottest sleepers. Make it seasonal with light cotton sheeting for summer, warm flannel in the winter.

Bed Linen and Styling by Abode Living - www.abodeliving.com @abode_living. Interior Design by Wyk Architecture

Recent Sales

Fairfield | 170 GILLIES STREET Undisclosed 3 1 March 2024 Thornbury | 13/137-139 FLINDERS STREET $650,000 2 1 2 February 2024 Thornbury | 5 JONES STREET $1,350,000 3 1 2 February 2024 Northcote | 4/305 HEIDELBERG ROAD $425,000 1 1 1 February 2024 Northcote | 25 OXFORD STREET $2,420,000 4 2 1 February 2024 Northcote | 205 SEPARATION STREET $1,500,000 3 1 3 March 2024

Recent Sales

Preston | 24 COOPER STREET $1,142,000 February 2024 Preston | 3 ST DUTHUS STREET Undisclosed 3 1 2 February 2024 Preston | 8/52 SHOWERS STREET Undisclosed 2 1 1 March 2024 Reservoir | 17 ORRONG AVENUE $905,000 2 1 5 February 2024 Reservoir | 40 STOREY ROAD Undisclosed March 2024 Reservoir | 30 WHITELAW STREET $942,500 February 2024 2 1 2 3 1 4 2 1 2
460 High Street, Northcote VIC 3070 P: 03 9481 0633 E: northcote@woodards.com.au 663-665 High Street, Preston VIC 3072 P: 03 9478 2222 E: preston@woodards.com.au 766 High Street, Thornbury VIC 3071 P: 03 9480 1277 E: thornbury@woodards.com.au
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