Woodards Croydon Market Snapshot by Woodards

Market Snapshot

Edition 1: 2025

Croydon

The Director’s Cut

by Joe Anto, Wendy Steel & Tony Smith Directors Woodards Croydon

Market Momentum Builds as Conditions Evolve

As 2025 kicked off, the market showed early signs of momentum, with increased buyer numbers and strong attendance at open homes due to the February interest rate cuts. However, hesitation remains, with many buyers waiting to see how conditions evolve—particularly in the lead-up to the federal election.

Two standout sales demonstrated the ongoing depth of buyer interest. A modern yet stately estate at 5 Stanley Street, Chirnside Park, captured attention immediately, selling within 12 days above the price guide of $3.3 - $3.6 million. Meanwhile, 42 Tamworth Road, Kilsyth, highlighted the power of off-market sales—with a guide of $900,000–$930,000, it sold in just five days for $945,000.

Strategic preparation was key to some recent success stories, with our team helping to transform two abandoned homes in Ringwood East through complete clean-ups and revitalisation efforts. Both properties sold within two weeks at standout prices, showcasing the power of smart presentation and proactive marketing.

Looking ahead, the market faces mixed conditions. Construction costs have soared nearly 40% since the pandemic, reinforcing the value of established homes, while ongoing mortgage stress adds uncertainty, potentially easing with the first rate cut since late 2020. Despite these factors, prices are expected to remain stable, tracking alongside inflation.

Metro Melbourne Property Outlook

The winds of change are upon Melbourne’s property market, which has been going through somewhat of a rough downturn ever since hitting all-time peak median prices in the early parts of 2022. The 13 rate hikes by the RBA didn’t help things much, with subsequent median property prices dropping and general buyer and seller sentiment not particularly buoyant.

But with the RBA cutting rates for the first time in almost 3 years, coupled with an optimistic outlook and numbers trending in a positive direction, it appears as though there is light at the end of the tunnel for real estate in Melbourne.

A rates cut the entire country has been waiting for At the first meeting of the year back in February, The Reserve Bank of Australia (RBA), on the back of months of steadily declining inflation numbers along with a number of other factors, made the decision to cut the cash rate by 25 points from 4.35% to 4.1%. This is the first time the RBA has cut the cash rate in 4 years.

“This is the rate relief Australians need and deserve,’ said

Treasurer Jim Chalmers. So what does this mean for mortgage owners? If you have a current home loan of $500,000, you will save around $960 a year ($80 a month), while those with a $1,000,000 loan will save $1848 a year ($154 a month). All the big 4 banks – Westpac, CBA, ANZ, and NAB – quickly announced they will be passing on the rates cuts to customers.

Onward and upward for the Melbourne property market

While we are less than two months separated from the RBA’s first rates cut in 4 years Melbourne’s property market is already showing signs of resurrection and getting back to its glory days.

According to one of the country’s leading real estate data experts PropTrack, Melbourne has gained the most steam of any capital city in Australia in the early stages of 2025, with home values rising 0.7% in the first quarter of the year. This is compared to a 1.3% dip in property prices in the December quarter to end 2024. The rise from the last quarter of 2024 to the first quarter of 2025 is the largest of any capital city in the country.

“Melbourne is primed for a very significant turnaround in 2025,” said Jacob Caine, President of the Real Estate Institute of Victoria (REIV) to the Herald Sun. “Inquiry levels, bidder numbers, offer levels have all seen a dramatic increase, particularly since the Reserve Bank reduced the interest rates.”

Melbourne might not be so affordable for very long

For years it was Melbourne and Sydney duking it out for the top prize when it came to median property pricing. But as

of the start of 2025, Melbourne is currently sitting in 56h place amongst major capital cities behind Sydney, Brisbane, Adelaide, Perth, and Canberra. Darwin and Hobart are the only 2 Australian cities that are cheaper to buy a property than Melbourne.

What does this mean for Melbourne? Comparative to the other major Australian cities, Melbourne has now become an affordable option. In an article in the Australian Financial Review, Arjun Paliwal, head of research at buyers’ agency InvestorKit, noted that a resurgence is already happening in the lower segment of Melbourne’s market.

“We’re trying to target $750,000 to $950,000 price points in Melbourne because houses priced under $700,000 are now attracting between 30 and 50 groups at open homes, and we’re starting to miss out on a lot of those properties due to high demand,” Mr Arjun told the AFR. “So I would say Melbourne’s turnaround is already occurring in the lower quartile of the market. If you’re looking to buy a house under $800,000, that window is closing fast, but if you have a larger budget, then you can take your time a little bit.”

Why not look to make a home in one of Melbourne’s most liveable suburbs

Melbourne has always had a reputation as being one of the world’s most liveable cities, but PwC’s CityPulse 2025 report has taken it one step further.

Released in March, the report delves into Melbourne’s most liveable suburbs, assessing services, schools, community, healthcare, and other key indicators. Coming out on top with a liveability rating of 10.0 was Fitzroy North, which currently has a median house price of $1,400,000 and median unit price of $565,000.

Not far from Fitzroy North but also achieving a spot high on the list is Flemington, which has a rating of 9.8 but offers a more affordable entry with a median house price of $1,060,000 and a unit price of $401,500. Other suburbs that cracked the CityPulse list include Surrey Hills, Hawthorn East, West Melbourne, Hughesdale, and Camberwell.

The Art of Indoor Outdoor Living

Indoor-outdoor living has become a hallmark of modern Australian homes. By merging the comforts of interior spaces with the beauty of nature, this approach not only enhances lifestyles but strengthens property value. Achieving this balance requires thoughtful planning, from architectural features to material choices and cohesive styling. Here’s how to master the art of indoor-outdoor living

Designing For Flow

The foundation of indoor-outdoor living lies in erasing physical boundaries. Architectural elements such as sliding glass doors, bifold walls, and level flooring enable a natural flow between spaces. These features transform outdoor areas - be they lush gardens, serene patios, or sunlit decks - into functional extensions of the home.

Reflecting Indoor Comforts

Reimagine outdoor spaces as extensions of your home’s key hubs. Built-in barbecues or pizza ovens replicate the kitchen outdoors, while dining tables and plush seating bring the dining room outside. Add warmth with fire pits or pergolas, turning patios into living room-style retreats. This approach bridges indoor and outdoor living, perfect for hosting or relaxing

Choosing Natural Materials

Choosing materials and finishes that reflect or complement the outdoors is key to creating continuity. Consider using timber, stone, or concrete in both your indoor and outdoor spaces for a cohesive look. Flooring plays a significant role here - opt for tiles or decking that can withstand the elements while visually tying your interior design to the natural surroundings.

Ensure Styling Cohesion

Styling is the thread that ties your indoor-outdoor spaces together. Use decor elements like textiles, colour schemes, and furniture to mirror your indoor aesthetic outside. For example, outdoor cushions and rugs in complementary tones can extend your indoor colour palette, while furniture styles should feel consistent, whether sleek and modern or warm and rustic.

City of Maroondah

Maroondah Median Houses

$1,035,000

Source: REIV

SPOTLIGHT

SALE

3 Hubble Road Croydon

This functional residence, offering a life of comfort and contentment in a low maintenance package sold for $706,500.

City of Manningham

Idyllic court location with generous entertaining spaces, this home sold for $820,000. 14 Bligh Court Lilydale

Shire of Yarra Ranges

The Cottage Garden Comeback

Cottage gardens hold a cherished place in Australian home design. These whimsical, lush landscapes evoke a sense of nostalgia, transforming ordinary homes into enchanting retreats. Originally a blend of practicality and beauty, they have stood the test of time as an enduring feature of Victorian and Federation homes. Today, they continue to captivate, offering a timeless scene while enhancing property value.

A Blooming Legacy

First flourishing during the Victorian and Federation eras, these gardens were celebrated for blending beauty and utility. Combining ornamental blooms with edible plants like herbs and vegetables, they evolved into richly decorative spaces. Their dual purpose reflected a balance of practicality and artistry, showcasing the dedication and creativity of their caretakers.

Heritage-Inspired Elements

A quintessential cottage garden offers sensory delight. Overflowing flower beds of heritage blooms like roses, lavender, and daisies wrap the home with fragrance and colour. Meandering stone paths add structure and invite exploration, while classic picket fences enclose the garden with nostalgic charm. Together, these details create a setting that enchants and inspires.

Garden Views and Daily Bliss

Cottage gardens soften the divide between indoors and out, creating a seamless connection with nature. Positioned near verandahs or entryways, these gardens serve as a natural extension of the home, inviting outdoor living. Whether viewed through a window or enjoyed up close, they bring an aura of tranquillity and balance to daily life.

First Impressions That Flourish

Brimming with romance and enduring elegance, cottage gardens bring undeniable character to Melbourne’s property market. Their ability to enhance curb appeal while creating a welcoming first impression makes them a valuable feature, offering not just beauty but a serene retreat from today’s fast-paced lifestyles, leaving a lasting impression on potential buyers.

Decorative Details That Shine Today

They say the devil is in the details, and in period architecture, decorative trimmings are the finishing flourish that transforms a house into a work of art. From intricate cornices and ceiling roses to facades adorned with ornate detailing, these features once signified craftsmanship and status. Today, they continue to captivate homeowners and buyers, seamlessly blending history with modern living.

Elegance In Every Detail

During the Victorian and Federation eras, artistic trims such as cornices, friezes, and ceiling roses symbolised status and creativity. Featuring floral motifs, geometric designs, and elegant curves, these detailed embellishments highlighted the mastery of skilled tradespeople. They elevated interiors, turning otherwise ordinary spaces into timeless works of art.

Beauty Inside and Out

Period facades adorned with cast-iron lacework or embellished timber trims captivate modern homeowners with their unique charm and historical value, infusing homes with character and a sense of distinction. For sellers, such iconic details extend beyond curb appeal - they evoke a heritagerich lifestyle that resonates with buyers seeking unique and inspiring properties.

Blending Old With New

Decorative trimmings bring a refined contrast to modern interiors when styled thoughtfully. Match ornate cornices with clean-lined furniture or let a ceiling rose shine under a minimalist pendant light. During renovations, opt for neutral tones or subtle colour accents on trims, striking a balance that allows period details to stand out without overwhelming the space.

Restoration Meets Innovation

Reviving such intricate features is a skilful fusion of old and new. Artisans repair and replicate period plasterwork with care by using traditional moulds alongside cutting-edge tools. These meticulous restorations celebrate the past’s handiwork while harmonising with modern design, ensuring these classic details remain relevant and admired in contemporary settings.

Property Investment Update

It’s been an undoubtedly topsy turvy ride for Melbourne property investors over the last couple of years. High rental demands have seen prices shoot up reaping excellent returns, however an increase in land tax and higher interest rates have placed an added burden for those with investment portfolios.

There has been a significant shift though in sentiment in the investing market in Melbourne to begin 2025, with an RBA rates cut the beginning of what will likely be a return for investors to the city and suburbs.

What does a rates cut mean for investors?

In February, the Reserve Bank of Australia cut the cash rate by 25 points from 4.35% to 4.1%, the first rates cut the country has seen in 4 years. But what exactly are the benefits for investors?

A steadier and better cash flow for investors is one of the obvious advantages, with lower bank repayments welcome relief. Investors will also still be receiving the same rental income which sits at an all-time high. While one rate cut might only result in a few more dollars in investors pocket each week, predicted additional cuts will have these dollar adding up to substantial savings.

A rates cut might also increase the borrowing capacity for investors who were previously capped at a certain number. The ability to take out a higher loan means there is more choice when it comes to the investment property investors may desire to purchase.

REIV urges state government to reform current property tax laws

The Real Estate Institute of Victoria (REIV), the state’s peak real estate representative body, has urged the state government to implement tax property reforms in the hope of boosting the state’s current housing supply.

One of the main reforms REIV put in their budget proposal to the Allan government in March was land tax concessions,

which is one of the main reasons Victoria has seen a trend of long-term investors leaving the market. Another of the other major reform pushes is encouraging long-term leases of over five years, which is a rental model that is seen in many overseas markets.

“If the Victorian Government is to succeed in fulfilling its critical mandate of improving the state’s housing supply, better enabling property sector investment is paramount,” said REIV Chief Executive Officer Kelly Ryan in an article in Elite Agent in March. “A growing issue our members are seeing play out across the sector is rising costs and complex regulatory obligations causing rental providers to withdraw their properties from the long-term rental market,” she said.

REA’s Hot 100 List is back!

For the third year running, REA ended last year with their annual Hot 100 suburbs list, with experts nominating suburbs across Australia they see having short to mediumterm price growth based on a number of factors. The list takes into account affordability, amenities, family appeal, location, investment prospects, gentrification, population growth, demographic change, and infrastructure.

There were 17 Victorian suburbs to make the list, with a total of 13 suburbs in Melbourne. Some of the suburbs on the list include Blackburn South, Coburg, Cranbourne, Croydon, Pakenham, Reservoir, Spotswood, and St Kilda East.

Coburg was one of the suburbs on the ‘Hot 100’ that will truly stand out to investors. “Coburg offers relatively

affordable housing options compared to nearby suburbs like Brunswick and Preston, appealing to budgetconscious buyers,” said Matthew Scafidi, REBBA Victorian representative who nominated the suburb for the list. “The suburb has a strong rental market and is experiencing ongoing demand, making it a good investment opportunity.”

A silver living as Melbourne hits record rental prices Melbourne recorded all-time high rental prices, up 4.5% over the last twelve months. Prices rose $25 per week in this time, with the typical unit in Melbourne costing renters $575 per week.

“It’s still very much a landlord’s market,” said Dr Nicola Powell, Chief of research and economics at Domain. While high rental prices are not great news for tenants, these soaring prices coupled with dropping interest rates is good news for investors who have held onto their properties during a downturn in the market.

It’s not all doom and gloom for tenants though. Melbourne still remains relatively affordable compared to the rest of Australia when it comes to median rental prices, with Hobart (sitting at $570 per week) the only cheaper option for renters. Melbourne’s house rental price has also remained relatively stable, only growing $10 per week to $580 per week over the last 12 months, making it a more palatable option for those looking to rent.

Suburbs with the highest median rent

Bayswater North

Croydon

Croydon Hills

Croydon North

Croydon South

Kilsyth $600

Kilsyth South

Wonga Park $900

Bayswater North

Croydon

Croydon Hills

Croydon North $535

Croydon South n/a

Kilsyth $550

Kilsyth South n/a Montrose $420

Mooroolbark $510

Sip, Serve, Style:

Hosting Made Easy with Australian Brands

With summer in full swing, keen entertainers are undoubtedly busy organising lively luncheons and afternoon barbecues at home. Luckily, these Australian brands offer creative ways to up your hosting game, leaving guests inspired long after the plates are cleared.

Fenton & Fenton

Hosting becomes an art form with Fenton & Fenton’s vibrant colours and bold textures. Their Wild Child Bar Cart is great for intimate indoor nooks, while the Sundowner Bar Cart elevates outdoor entertaining. Both are prime for showcasing drinks or canapes.

Fazeek

Fazeek’s eye-catching designs combine artistry and practicality, making them ideal for hosting with style. Their iconic Wave and Pearl drinkware collections bring character to any setting, while their statement platters enhance food presentation with flair.

TS Makers

For those who love to delight their guests with charcuterie displays or tapas spreads, TS Makers offers handcrafted serving boards made from Australian hardwoods. Pair them with their elegant Cheese Knife Sets and gorgeous glassware for a stunningly cohesive look.

Country Road

Effortless sophistication is the hallmark of Country Road’s hosting essentials. Luxurious linens, from napkins to runners, enrich table settings, while standout pieces like the Talo Jug or 16-Piece Gold Cutlery Set, offer that perfect finishing touch.

Bonnie & Neil

Bold textiles bring any gathering to life, and Bonnie & Neil’s ever-evolving range of tablecloths, napkins, placemats, and coasters deliver just that. Their vivid patterns and colours transform spaces, making them suited for creating warm, inviting settings, whether indoors or alfresco.

Jones & Co

Keen entertainers and Jones & Co go hand in hand, with the brand’s love for fun and adventure at its heart. Their Costa Del Sol ceramics collection, featuring hand-painted tropical designs, includes standout jugs and platters, primed for fresh fruit and seafood displays.

Maison Balzac

A gathering feels instantly elevated with Maison Balzac’s refined creations. Their hand-blown glassware, including classic carafes and party glassware, brings understated elegance, while candleholders and dinner candles add a signature French-inspired flair.