Market updates

Glen Eira market update

GARY PEER

Co-Founder, Director 0414 532 778

Buyers who were once competing ferociously for land and new builds are now more accepting of dated homes. Ones that may not tick all the boxes, but are diamonds in the rough of inflated construction costs and development difficulties.

Spring has sprung. But housing prices have done quite the opposite – having fallen from their early 2022 highs (in many cases by as much as 10 to 15%). Accepting that these levels represent value, buyers are jumping in. As such, our clearance rates have risen to around 80%, rather than the around 60% we were seeing earlier in the year. This means we’re likely to have a good spring. Buyers and sellers are meeting on price. And for sellers in particular, there are big opportunities. For first-time home buyers, the chance to avoid stamp duty (for properties under $600,000) should remain a huge pull. However, a stamp duty review is underway, meaning the current first-time home buyer benefits may not be ongoing. So now’s the time to pounce. We’ve also noticed over the last few months that buyers are developing a ravenous appetite for preowned prestige properties. Buyers who were once competing ferociously for land and new builds are now more accepting of dated homes. Ones that may not tick all the boxes, but are diamonds in the rough of inflated construction costs and development difficulties. Of course, we’ve still been selling those homes that do tick all the boxes. In September, we sold a pair of luxurious Caulfield North homes at auction on the same weekend. One was the five-bedroom, four-bathroom beauty at 7 Keverell Road. The other, situated at 3 Craddock Avenue, was a mid-century masterpiece. Both sold for undisclosed prices (circa $5,000,000). Also in Caulfield North, we had the pleasure of selling a historic house on Glenferrie Street. Home to a renowned architect, the property was one of the most notable and eyecatching we’ve sold – an absolute joy to bring to market. Nearby, on Caulfield’s revered ‘Golden Mile’, we applied our own Midas Touch to a luxury home, which sold for around $20 million. It was the highest price ever paid for a property in Caulfield North… not a bad day at the office! Elsewhere, there’s no shortage of exciting projects taking shape in and around Glen Eira. The transformation of the old Godfrey’s on Hawthorn Road – set to become a mix of shops and luxury apartments – continues the area’s remarkable revitalisation. A bowls club is becoming an ALDI, a disused petrol station a Woolworths. And, with yet more apartments and amenities to appear, this key stretch of Caulfield South is getting the makeover it deserves. With footy wrapped up for the year, racing season is on its way. Which means we’ll be mapping our campaigns and auctions around key local events, such as the Caulfield Cup and the Caulfield Guineas. And, as the skies clear and the weather warms up, we’ll continue to bring increasingly exciting homes to market – and deliver the best results.

Bentleigh market update

LEON GOUZENFITER

Director, Bentleigh 0422 339 791

The unusually high cost of building also presents opportunity. On average, land prices have dropped by around 10 to 15% in value. And, in some parts of Bentleigh East, by as much as 25% since the start of the year. For buyers not deterred by the cost of construction, it’s an exciting prospect.

In Bentleigh, we’re seeing signs that the market has found its equilibrium. Sellers, understanding that the market isn’t at its former highs anymore, are coming with more realistic expectations. With buyers and sellers now on the same page, trade has become freer. And we’re seeing a number of competitive auctions coming into play. Plus, despite volume being lower than normal – even in the typically quiet winter months – we’ve seen some noteworthy results. In the chill of late August, our team continued to raise the bar – and the bidding stayed hot. The beautiful fivebedroom, four-bathroom home at 40 Wavell Street sold at auction for $2,850,000. On the same day only a few streets over, 11 Deakin Street – a head-turning four-bedroom home – sold for $1,850,000. Both homes were located within the highly sought-after McKinnon Secondary College Zone. Elsewhere, a house in Bentleigh’s Rose Street, on over 1000m2 of land, became the most expensive ever sold in the 3204 postcode. And, despite some of the ‘doom and gloom’ around the winter market – with high interest rates and the seasonal lull – we still saw some standout sales.

Interest in family homes and generational holds remains extremely high – particularly with building-from-scratch fears continuing to linger. So for sellers with established property to sell, there’s a market waiting for you. While inconvenient, the unusually high cost of building also presents opportunity. On average, land in Bentleigh has dropped by around 10 to 15% in value. And, in some parts of Bentleigh East, by as much as 20% since the start of the year. For buyers not deterred by the cost of construction, it’s an exciting prospect. Also exciting is the ongoing glow-up of the shopping strips along Patterson Road and Centre Road. History and common sense tell us that when shopping hubs are built up, so too are nearby property prices. Plus, Bentleigh has the three keys to comfortable long-term living: great schools, proximity to transport, and plenty of parks, cafes, and amenities. So watch this space! Bentleigh is also attracting buyers priced out of Brighton and Hampton. With a train station and the strong pull of leading primary and secondary schools, Bentleigh is ticking all the right boxes for what families want over the next 10 to 20 years. Ultimately, it’s a fantastic time to move. Bentleigh is a bluechip suburb and, right now, it’s offering prices of anywhere between 10 and 20% off-peak. The brave people – those who buy when others hesitate – also tend to be the smart people. And right now, Bentleigh is where they’re headed.

Carnegie market update

LEOR SAMUEL

Director, Carnegie 0413 079 255

Despite what the economists and sceptics were predicting, there’s no sign of ‘panic selling’. In fact, many sellers are happy to wait until the market can again support the prices they’re hoping for. And sellers who are adjusting to market conditions are continuing to do well.

With increases in both living and construction costs, brand-new property is more expensive than ever. That means established real estate continues to be an alluring, affordable and attractive investment for home buyers. We’re also continuing to see a strong demand for good quality homes: particularly those in prime locations, that are ready to seamlessly move into. Prices have settled from the peaks we were seeing last October. And so have listings, with stock level volume down around 20% since this time in 2021. Buyers are still happy to pay market value, though, and homes are still selling at fair market prices. Despite what the economists and sceptics were predicting, there’s no sign of ‘panic selling’. In fact, many sellers are happy to wait until the market can again support the prices they’re hoping for. And sellers who are adjusting to market conditions are continuing to do well. A standout result was 22 Kooringa Road, Carnegie: a 1990s single-level home on a sub-divided block, with three bedrooms and two bathrooms. With a mix of owneroccupiers and downsizers attending the auction, five bidders went toe to toe. The house sold for $1,286,000. A few streets north, 20a Edgewood Street – one of two identical townhouses – sold for $1,510,000. The other half sold back in 2019 for $1,300,000. Close to a $200,000 rise, especially in this market, is an impressive result that bodes well for the Carnegie market at large. It’s also worth remembering that this time last year Melbourne was in lockdown. Now, people are out and about again. In the day, Carnegie’s shopping strips are thronged with customers. At night, its restaurants are packed with diners. On the weekend, the bars of Koornang Road buzz with vibrancy and vitality. There’s been a buzz about our Carnegie office, too. Returning to normalcy, we’re stronger than ever. We’ve learnt, we’ve adapted. And we’ve grown, with both our sales and rental teams taking on new staff. What’s more, we’re hitting ever-increasing heights of performance. Our property management team recently set a new record for lettings – a feat which suggests optimism for Carnegie’s rental market going forward. As we look forward to a new quarter and year, we’ll continue to evolve our services and processes to go above and beyond for our clients. Bring it on.

St Kilda market update

JEREMY ROSENS

Director, St Kilda 0413 837 723

What we’re now seeing – especially over the last month or so – is that the market has found its level. Open homes are seeing more footfall and, as the weather gets hotter, the general sentiment in the market is also warming up.

In St Kilda, what we’re now seeing – especially over the last month or so – is that the market has found its level. Open homes are seeing more footfall. And, as the weather gets hotter, the general sentiment in the market is also warming up – as is the market’s prognosis. This quarter, we expect to see around 10 to 20% more homes for sale – along with higher quality stock. As spring edges into summer, we’re looking forward to a season of higher sell-through and clearance rates. The future, like the St Kilda sunshine, looks bright – and we can’t wait for more standout sales of the calibre we saw over the last quarter. Among the highlights? 38a Chapel Street in St Kilda, which sold for $1,360,000. And a beautiful home at 41 Octavia Street, which – following a busy, bustling auction between four determined bidders – went for $1,705,000. A block or two from our office, the gorgeous Victorianlooking home at 19 Odessa Street sold for $2,150,000 in one of our quarter’s most satisfying sales. What else can we expect as October shuffles into November, and spring gives way to summer? Well, it’s St Kilda – and our beaches never fail to attract their fair share of tourists, revellers, and sun-seekers. With the sun high in the southeast Melbourne sky, people are in a better mood. What’s more, each new month takes us further away from the COVID-19 pandemic – and brings ever more international visitors through the doors of our cafés, restaurants and nightclubs. This is good for the vibe of the area, of course. But it also ensures St Kilda remains an attractive proposition for investors and prospective home buyers. Add this to the current state of the market, and it feels like a very wise time to buy. My advice? Don’t wait for the market to go into freefall. In four years, chances are we’ll be looking back at this time with a fond gaze. So jump in now – there may not be a better opportunity.