Market Snapshot
November 2024
Merri-bek & Hume Edition
Market Overview
by Rebecca Towns Licensed Estate Agent & Auctioneer Pascoe Vale
Buyers Push to Secure Homes Before Year-End
As we approach the end of the year, buyer activity is picking up. While stock levels were lower during winter, limiting choices, the market is now gaining momentum. With the year-end approaching, many property seekers are eager to secure their homes before the Christmas pause.
In a similar sentiment, our agents are also finding that buyers want to move quickly before potential interest rate decreases next year, anticipating that lower rates could lead to a more competitive market and rising property prices. As a result, many house-hunters, particularly firsthome buyers, are moving quickly to secure their ideal homes now.
In the last month, we’ve seen some impressive sales, signalling that the market is gaining traction. At 8 Byron Court, Glenroy, a beautifully presented home, attracted six bidders at auction, selling for $1.406 million. Similarly, 434A Lygon Street, Brunswick East, sold for $1.631 million, surpassing its price guide with competition from two determined bidders.
For sellers, first impressions are everything. We always advise vendors to think like buyers—consider how you’d want the home to look, focusing on street appeal and entryway looks. A well-prepared home attracts serious offers and stands out in a fast-paced market.
Metro Melbourne Property Outlook
Spring selling season has finally arrived and it never fails to disappoint in Melbourne. Warm sunny days, gardens looking pristine and colourful, the smell of freshly cut grass in the air, and plenty of positive sentiment makes this the ideal few months for buyers and sellers to realise their property dreams.
An interest cut is getting closer by the day
Interest rate cuts are on the horizon, with all four of the big banks expecting the first cut to come imminently. Both Westpac and ANZ have predicted February 2025 for the RBA to announce a drop in the current cash rate which stands at 4.35%. The Commonwealth Bank however is a little more bullish on the timing, and has forecast that Australians will see some rates relief by December 2024.
“Overall we believe that if the economic data over the near term evolves in line with the RBA’s latest forecasts the cash rate will be left on hold until Q1 25,” said Gareth Aird, Head
of Australian Economics at CBA to Yahoo Finance. “But we continue to side with market pricing and think it more likely than not we will see an interest rate cut by the end of the year.”
There are some banks that have already started dropping their rates, with ANZ slashing their fixed rate mortgage. They announced in early October that they would cut their three-year fixed rate mortgage by 60 basis points to 5.99%, and two-year fixed rate to the same level.
Suburbs bucking the median price trend
While there are a number of suburbs across Melbourne which have seen a drop in median house and unit prices over the last year, Australia’s leading source of property insights PropTrack recently highlighted suburbs where median prices have risen.
Essendon West is one of the suburbs that tops the list for houses, seeing its median price house rise 2.8% over the last 12 months to $1,323,360. Cobug North (2.7%), Narre Warren North (2.7%), and Pakenham Upper (2.9%) are other suburbs which have performed well over the previous year.
“What we are seeing is that the share of suburbs that have a median that falls within the buying range of a lot of first-
home buyers is shrinking, and that’s meaning that those more affordable suburbs and pockets are drawing in a higher share of all buyers out there,” said Anne Flaherty, Senior Economist at PropTrack to the Herald Sun. “And that’s why we are still seeing some of them growing.”
Units have seen even better growth with Travancore (8.6% up on its median unit price over the previous 12 months), Ashburton (5.6%), and Sydenham (4.8%) leading the pack.
Don’t wait too long to buy in some of Melbourne’s hot suburbs
There are many areas across Melbourne that are experiencing a big surge in popularity, with houses being snapped up quickly with very little days on the market according to realestate.com.au.
The tranquil and leafy suburb of Skye right on the edge of the Mornington Peninsula for example, had houses selling on average after only 14 days listed on the market for the month of August 2024. This is drastically below Melbourne’s average of properties lasting 42 days on the market. Carrum Downs, Skye’s direct neighbour, also averaged only 2 weeks on the market.
The short market time for some of these hot suburbs is reflective of buyer demand in these areas. The unit market in some suburbs is also red hot, with Croydon North and Ringwood East lasting only 20 days and 21 days respectively. The old adage ‘you snooze, you lose’ might be very relevant for home buyers searching in these suburbs, so there is no time like the present to get to an open for inspection!
Australia’s Best Brands for the Outdoors
Whether it’s a sunny courtyard, a breezy balcony, or a lush garden, outdoor spaces are an extension of the home, requiring both aesthetic appeal and long-lasting durability. These homegrown brands offer outdoor designs that reflect Australia’s love for alfresco living.
King Living
Proving that style extends beyond a home’s interior, King Living’s outdoor furniture highlights their signature modular designs. Take for example the 1977 Outdoor Sofa, with its seventies-inspired curves and low profile, crafted with high-performance removable covers.
DesignByThem
Known for fun, modern designs, DesignByThem creates playful yet practical outdoor furniture. Their Confetti Dining Table and Butter Seat reflect this sense of play. Made from recycled materials, their bold pieces encourage creativity in any outdoor setting.
Business & Pleasure Co.
Business & Pleasure Co. crafts trendy, high-quality outdoor products with vintage flair, capturing Australia’s love for sun-soaked spaces. Their popular Al Fresco Sun Lounger and range of Patio Umbrellas illustrate a European beachside escape, perfect for creating casually elegant spaces.
Tait
Australia’s love for the outdoors shines in Tait’s evolving collection, featuring weather-resistant designs crafted from powder-coated steel and sustainable timber. The Volley Lounger is popular for terraces, while the Billy Sunlounge brings style and comfort to poolside settings.
Sarah Ellison
Courtyards and terraces were made more chic through the launch of Sarah Ellison’s outdoor collection, with her most iconic pieces now designed for outdoor use. From the Muse sofa to the Alva armchair and two-seater sofa, these pieces offer timeless elegance.
Poolside Store
Celebrating the spirit of summer, Poolside Store offers retro-inspired umbrellas, furniture, and floats, perfect for carefree days by the water. Their Classic Pool Rings evoke nostalgia, while their partnership with California Umbrella provides the ultimate shady poolside essential.
City of Hume
$675,000
Source: REIV
SPOTLIGHT SALE
This gorgeous 3 bedroom home enhanced for the ultimate in modern comfort sold for $930,000. 24 York Street Pascoe Vale South
Hume Median Houses
MEDIAN SALE PRICE SEPTEMBER QUARTER 2024
City of Merri-bek
$1,090,000
83%
$2,570,000
SPOTLIGHT SALE
19 Loyola Avenue Brunswick
This enhanced 4 bedroom plus external studio/office period home sold for $1,750,000.
MEDIAN
Featured Space: Mid-Century Modern Homes
In an era where simplicity, serenity, and sustainability are increasingly valued, midcentury modern homes are experiencing a resurgence in Australia. Their perfect fusion of form and function and seamless integration with nature offers an irresistible allure for homeowners and architects alike appealing to those who seek character and practicality in equal measure.
A Post-War Design Movement
Born from the optimism of the post-war housing boom, the mid-century modern movement saw Melbourne neighbourhoods become canvases for a fresh architectural vision inspired by icons like Frank Lloyd Wright. The emphasis was on clean, open spaces and a harmonious connection between indoors and out - a design mindset that still resonates today.
Iconic Design Features
Flat planes, expansive glass, and clean horizontal lines define mid-century modern homes, creating spaces that feel open, airy, and full of light. Large windows invite natural sunlight, while timber and stone form a connection to the natural landscape. Internal courtyards further enhance this relationship, creating tranquil spaces that bring nature inside.
Adapting to Modern Lifestyles
While designed for another era, mid-century modern homes have gracefully adapted to contemporary life. Their open-plan layouts, initially built to foster family gatherings post-war, have evolved into multipurpose zones. The signature flow from indoor living areas to outdoor alfresco spaces remains as relevant as ever, meeting the demands of modern homeowners.
Key Melbourne Suburbs
For lovers of mid-century design, Melbourne’s east and southeast suburbs - especially Beaumaris, Balwyn North, and Mount Eliza - offer a treasure trove of these homes. Woodards has proudly marketed many such homes, presenting their modern-day potential to a new generation of buyers who appreciate their retro charm and lasting character.
Enduring Investment Appeal
As interest in mid-century modern homes flourishes, particularly in Melbourne’s established suburbs, they offer sellers a chance to highlight their historical significance as prized investments. For buyers, these properties present an opportunity to own a piece of architectural history - iconic, timeless gems ready to be revitalised and reimagined.
Multi-Generational Living
As multi-generational living becomes increasingly popular, families across Australia are embracing the advantages of living together under one roof. This lifestyle allows generations to support each other through various life stages, from helping raise children to caring for elderly relatives. The key to harmony in such homes lies in thoughtful design, ensuring that everyone has their own space while still fostering togetherness.
Attached Self-Contained Studio
One popular option for multi-generational homes is the attached self-contained studio. These spaces are integrated into the main residence yet function as independent living quarters. With features like a private entrance, bedroom, kitchenette, and bathroom, the studio provides privacy and autonomy while still offering easy access to shared family areas.
Detached Granny Flats
Flat planes, expansive glass, and clean horizontal lines define mid-century modern homes, creating spaces that feel open, airy, and full of light. Large windows invite natural sunlight, while timber and stone form a connection to the natural landscape. Internal courtyards further enhance this relationship, creating tranquil spaces that bring nature inside.
Adapting to Modern Lifestyles
Providing a perfect balance between independence and proximity, granny flats are an ideal solution for multigenerational living. Situated separately from the main house, these self-contained units allow family members to enjoy their own space. Shared outdoor areas, such as gardens or courtyards, become gathering points while ensuring privacy when needed.
Singular Dwellings with Dual Features
In larger family homes, multiple generations can comfortably coexist under one roof by incorporating dual features such as double master suites, kitchens, and entrances. This clever strategy offers family members equal comfort and independence, providing the flexibility to come together in communal areas or retreat to private quarters as needed.
Custom-Built Homes for Flexibility
If an opportunity to design a home from scratch is feasible, custom-built homes designed specifically for multigenerational living provide tailored solutions for families. These homes often feature distinct wings, dual kitchens, and shared communal areas. Outdoor areas are also carefully considered, such as shared gardens, courtyards, and alfresco dining zones.
Property Investment Update
Melbourne is a city that offers investors so many amazing options across a wide range of suburbs, all with their own appeal and unique charm. From sleek inner city apartments to inviting family residences and easy units in quiet and picturesque suburbs. There are plenty of opportunities to
get into the investing market and there is no better time than this spring!
Melbourne’s rental market remains robust
While the Melbourne sales market may have been going through a little bit of a flat patch over the last couple of years, the rental market continues to thrive for investors who are after exceptional returns. Record low vacancy rates and high demand have driven this.
There are some suburbs in Melbourne that have seen a jump of up to 34% increase in median rent over the last 12 months. Bellfield in Melbourne’s north-east was at the top of the list, seeing it’s median rental price jump over a third in the last year to $643 per week. Prestige blue-chip suburbs Toorak and East Melbourne were next on the list with rises of 30% and 29.4% respectively.
Heidelberg West, Donvale, Noble Park North, Maribyrnong, Murrumbeena, Keilor East, and Dandenong were also on the list, all with median rental increases of over 20%.
While continued high rents spell bad news for renters, these figures do bode well for investors who are wanting to maximise the return on their investment.
Invest now in Melbourne’s booming ‘Activity Centres’
To help with the current housing crisis, The Victorian Government recently highlighted 10 activity centres throughout Melbourne where 800,000 new homes will be built over the next decade. The goal is to help younger people and current renters in these areas be able to purchase more affordable housing.
Moorabbin in Melbourne’s south-east was one of the activity centres chosen, with the hub itself including Kingston Arts Centre, City Hall, bustling shops, and Moorabbin Train Station. “It’s a vibrant area – we’ve got the beach, schools, parks, and an airport that trains 30 per cent of Australia’s pilots,’ said Kingston mayor Jenna Davey-Burns to Domain. “We’re seeing northside culture coming south, and that’s what people have been waiting for. Young families and people are moving into the area because there’s so much on offer.”
Other emerging activity centres chosen by the government include Frankson, Camberwell Junction, Chadstone, Broadmeadows, Epping, Niddrie, North Essendon, Preston and Ringwood. With these suburbs set to explode in popularity over the coming years with the implementation of all this new housing, it couldn’t be a better time to invest in these areas.
The tide may be turning
An article in the Australian Financial Review recently highlighted that investor demand is currently outstripping supply at the very moment across Australia. With interest rate cuts imminently on the horizon, investors are looking to seeing a boost in their capital gains and a drop in holding costs. Highlighting this robustness in the property investing market nationwide, the volume of investor-led loans was $11.71 billion in August throughout Australia, the 2nd highest on record.
“A reduction in interest rates might empower more investors to actually hold their properties off the market because you’d have to imagine their properties would become more serviceable,” said Eliza Owen, Head of Research at CoreLogic to the AFR. “At the moment demand for investment properties seemed to be outstripping those who were selling off, at least on a combined capital basis.”
Melbourne hasn’t quite followed the trend of the rest of Australia when it comes to investor demand, but the tide is definitely turning giving savvy buyers a chance to snap up a bargain. So where to buy your next investment? Melbourne’s west saw 420 ex-rental houses hitting the market between January and September 2024, which was a jump of 57.1% above the five-year average. Melbourne’s inner-city, north-east, and north-west also climbed 43.1% on ex-rental listings in the same time. These areas might be a great place to start, with plenty of buying options awaiting keen investors.
Wraparound Verandahs
Wraparound verandahs have been a staple of Australian architecture. Initially designed to provide shade and refuge from the heat, these porches became much more than a practical feature. They were places where life slowed down, families gathered, and the outdoors became part of the everyday experience. Today, they remain a beloved hallmark of Australian homes, marrying nostalgia with outdoor living.
Indoor-Outdoor Connection
Few features encapsulate the Australian lifestyle as well as the classic verandah. Historically, these spaces softened the boundary between inside and out. Today, they continue to be cherished, whether enjoyed with a morning coffee, a refreshing afternoon breeze, or impromptu chats with neighbours. These shaded retreats are as much a part of daily life as ever.
Character & Curb Appeal
In Melbourne’s heritage-rich suburbs, wraparound verandahs are synonymous with Victorian and Edwardian homes. Adorned with delicate timber fretwork and ornate lace iron, these verandahs showcase the artistry of a bygone era. Their elevated stance and exquisite craftsmanship offer a grand first impression, framing homes with architectural grace that captivates from the street.
Modern Interpretations
Today’s verandahs have adapted to modern living, embracing contemporary materials like steel and glass for a sleek, updated look. With louvred roofs, retractable screens, and integrated heating, these spaces are now crafted for year-round enjoyment. Though their aesthetics may have evolved, their purpose remains unchanged—an outdoor space to relax, entertain, and connect with nature.
Boosting Property Value
For potential home sellers, wraparound verandahs can be a significant selling point, particularly in Melbourne’s competitive property market. Houses with these treasured architectural features represent a desirable lifestyle. They promise opportunities for alfresco living and expand a home’s overall footprint, making them highly attractive to today’s discerning buyers.
