December Report
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December report
From our corporate director Dean O’Brien
Hi All, The Reserve Bank of Australia's (RBA) rate hike in November last year marked a significant turn in Melbourne's housing market, with CoreLogic's December Home Value Index (HVI) revealing a 0.3% decrease in home prices for the second month in a row. This downturn is attributed to a series of interest rate increases throughout 2023, adding to eight hikes in 2022, collectively reducing the borrowing capacity of buyers to about 60% of what it was in January 2022. Despite these challenges, Melbourne's property market saw a moderate overall growth in 2023. The median price for both houses and units in Melbourne Metro rose by $26,392, an increase of 3.5%. This performance was a significant improvement over 2022, which witnessed an 8.1% decline, although it fell short of the 15.1% surge experienced in 2021. When compared to the stock market, Melbourne's property trends mirror those of the ASX 200. In 2023, the ASX 200 grew by 7.8%, recovering from a 7.2% decline in 2022 and following a 13.6% rise in 2021, as reported by ABC News. However, since March 2020, Melbourne has been the lowest-performing capital city in Australia, a trend likely influenced by the profound impact of Covid-19 on Victoria. Regional Victoria also experienced a downturn in 2023, with a 1.6% drop in average median prices for combined dwellings, amounting to over a $9,000 reduction. On a national scale, home prices across all states and territories saw an 8.1% increase in 2023, recovering from a 4.5% fall in 2022 and building on a 24.5% surge in 2021. The top-performing capital cities in 2023 were Perth (15.2% increase), Brisbane (13.2%), and Sydney (11.1%), which brought Sydney’s median house price to $1,400,000, significantly higher than Melbourne’s $948,041.
These figures suggest that Melbourne, despite recent price suppressions, might offer the best value for buyers and investors in Australia, especially when considering the potential for growth over the next three years. It's important to remember that this information is general in nature, and individuals should seek independent legal, financial, tax, or other professional advice tailored to their specific circumstances. Regards, Dean O'Brien Corporate Director
We sell more. A snapshot of last moths sales
Average sale price
$809,623 Address
Sale price High
Low
$2.1M
$498K
Suburb
Price range
Average days on market
Sale price
46 Days on Number market of buyers
2 Opal Court
Bayswater
3
1
1
748,000 - $820,000
$820,000
63
89
16/31-35 Glen Park Road
Bayswater North
2
1
1
$530,000 - $570,000
$512,000
47
20
7/269 Canterbury Road
Bayswater North
3
1
4
$590,000 - $649,000
$640,000
16
37
7 St Geornes Road
Beaconsfield Upper
4
3
10
$1,950,000 - $2,100,000 $1,890,000
122
41
17 Glenn Erin Way
Berwick
3
2
2
$780,000 - $850,000
$845,000
21
31
1/175 Dorset Road
Boronia
3
2
1
$680,000 -$748,000
$702,500
22
33
18 Medway Crescent
Boronia
3
1
2
$770,000 - $780,000
$750,000
68
99
2/58 Woodvale Road
Boronia
3
3
2
$780,000 - $850,000
$747,500
111
93
5/14 Woodvale Road
Boronia
2
2
1
$550,000 - $600,000
$575,000
26
25
22 Torossi Way
Botanic Ridge
4
2
2
$890,000 - $970,000
$930,000
17
5
12 Pump Hnuse Crescent
Clyde
4
2
2
$695,000 - $760,000
$750,000
37
26
40 Powlett Drive
Clyde
4
2
2
$690,000 - $755,000
$715,000
70
30
1 Pamplona Way
Clyde North
4
2
2
$650,000 - $690,000
$650,000
149
183
10 Pleven Rise
Clyde North
3
2
1
$550,000 - $600,000
$585,000
36
35
12 Arrow Road
Cranbourne East
3
2
2
$650,000 - $715,000
$680,500
30
29
24 Nugget Way
Cranbourne East
3
2
2
$505,000
$498,000
124
147
30 Parkhurst Drive
Cranbourne East
3
2
1
$560,000 - $615,000
$600,000
14
35
6 Ardent Crescent
Cranbourne East
4
2
2
$730,000 - $800,000
$750,000
29
19
9 Lanthorn Crescent
Cranbourne East
3
2
2
$530,000 - $580,000
$550,000
29
23
We sell more. A snapshot of last months sales
Address
Suburb
3/24 Elizabeth Street
Cranbourne North
2
1
7 Yew Court
Cranbourne North
4
2
1442 Westernport Highway Cranbourne South
Days on Number market of buyers
Price range
Sale price
1
$480,000 - $528,000
$506,000
10
7
4
$680,000 - $740,000
$707,000
29
19
$1,750,000
$1,750,000
97
7
Land
12-14 Olive Road
Devon Meadows
3
1
4
$1,400,000 - $1,500,000 $2,110,000
32
64
27-29 Worthing Road
Devon Meadows
3
2
3
$1,295,000 - $1,375,000 $1,300,000
25
51
8 Chantell Avenue
Endeavour Hills
4
2
2
$795,000 - $835,000
$790,000
0
10
139 Burke Road
Ferntree Gully
3
1
2
$800,000 - $880,000
$931,300
28
83
6/53-55 Frawley Road
Hallam
2
1
1
$485,000 - $533,500
$522,500
38
21
2 Pejaro Court
Knoxfield
4
2
0
$780,000- $858,000
$800,000
19
18
12 Franleigh Drive
Narre Warren
3
2
2
$695,000
$695,000
0
1
8 Woodley Street
Narre Warren
3
2
2
$700,000 - $750,000
$711,000
31
42
9 Wool Shed Road
Narre Warren South
$800,000 - $850,000
$825,000
232
14
12 Ezra Crescent
Officer
2
2
1
$495,000 - $540,000
$515,000
29
10
12 Swamp num Close
Pakenham
3
2
2
$535,000-$580,000
$591,000
9
33
13 Ironbank Circuit
Pakenham
3
1
1
$550,000 - $605,000
$618,000
5
22
26 Elderberry Way
Pakenham
3
2
2
$580,000 - $630,000
$620,000
11
29
29 Grice Quadrant
Pakenham
3
2
1
$560,000 - $595,000
$558,000
49
27
8 Ti-Tree Crescent
Seaford
3
1
1
$690,000 - $720,500
$710,000
0
1
6 Sambur Road
Tooradin
4
2
2
$935,000
$935,000
98
11
24 Fewster Drive
Wantirna South
4
3
2
$1,070,000 - $1,170,000 $1,190,000
25
40
Land
We lease more. A snapshot of last months sales Average weekly rent.
$523
Average monthly rent.
$2,271
Rental price p/w. High
Low
$800
$320
Number of suburbs leased in.
Leased price p/w
23
Leased price p/m
Address
Suburb
2/2 Adamson Road
Beaconsfield
3
1
1
$450
$1,955
21 Melzak Way
Berwick
3
2
1
$450
$1,955
2 Tilba Court
Berwick
3
2
2
$500
$2,172
36 St Boswells Avenue
Berwick
4
2
4
$590
$2,563
9 Colson Way
Berwick
4
2
2
$570
$2,476
6 Turella Close
Berwick
4
2
1
$570
$2,476
2 Van Der Haar Avenue
Berwick
3
1
2
$450
$1,955
15 Llano Circuit
Berwick
3
2
2
$520
$2,259
34 Scanlan Street
Berwick
3
2
6
$700
$3,041
16 Juliet Way
Berwick
3
2
1
$510
$2,216
27A Sharpe Court
Berwick
3
1
1
$450
$1,955
9 Orsino Place
Berwick
4
2
2
$600
$2,607
1a Watson Garden
Berwick
3
2
2
$530
$2,302
35 Robertson Crescent
Boronia
3
1
1
$390
$1,694
Unit 105/8 Bambury Street
Boronia
1
1
1
$450
$1,955
27 Woodvale Road
Boronia
4
2
2
$600
$2,607
11-12 Red Ash Close
Botanic Ridge
4
2
2
$1,050
$4,561
21 Orpington Drive
Clyde North
4
2
2
$550
$2,389
39 Springleaf Avenue
Clyde North
3
2
1
$550
$2,389
19 Freiberger Grove
Clyde North
3
2
2
$530
$2,302
We lease more. A snapshot of last months sales Address
Suburb
Leased price p/w
Leased price p/m
9/278 Narre Warren - Cranbourne Road
Cranbourne East
2
1
1
$420
$1,825
10 Fairlane Court
Cranbourne East
3
2
2
$520
$2,259
22 Gatehouse Parade
Cranbourne East
3
2
2
$520
$2,259
18 Tilden Rise
Cranbourne North
4
2
2
$550
$2,389
14 Coberley Way
Cranbourne North
3
2
2
$530
$2,302
21 Flanagan Crescent
Cranbourne South
4
2
2
$570
$2,476
83 Morningside Boulevard
Cranbourne West
3
2
2
$600
$2,607
Unit 319/16 Clyde Street Mall
Frankston
2
2
1
$390
$1,694
9 Crocus Crescent
Glen Waverley
3
1
2
$550
$2,389
4/5 Windsor Street
Hallam
1
1
1
$350
$1,520
10 Murdoch Place
Langwarrin
3
2
2
$640
$2,780
34 Henry Lawson Drive
Lynbrook
4
2
2
$650
$2,824
40 Demmie Mews
Lyndhurst
2
1
1
$400
$1,738
11 Mermaid Grove
Lyndhurst
4
2
2
$600
$2,607
38 Kurrajong Road
Narre Warren
3
2
6
$580
$2,520
7/363-365 Princes Highway
Noble Park
2
1
1
$470
$2,042
15 Austen Avenue
Officer
4
2
2
$595
$2,585
26 Newbury Street
Pakenham
3
2
2
$490
$2,129
56 Belmont Crescent
Pakenham
3
2
1
$450
$1,955
Unit 2/101 Bergins Road
Rowville
3
2
2
$580
$2,520
17 Rosella Road
Torquay
4
2
2
$700
$3,041
How much Melbourne home prices could rise in 2024: PropTrack Property Market Outlook Report
Ironically, their chances might be improved by landlords selling off rental homes at an accelerated level this year, as Melbourne has more homes for sale than any other capital in part thanks to their exodus. “There are quite a lot of investors looking to exit Melbourne and Victoria because there are quite a lot of taxes,” he said. From next year, investment property owners will be hit with increased land tax costs as the state government implements a series of levies to try and recoup Covid-era budget losses. Real Estate Buyers Agents Association of Australia Victorian representative Luke Assigal echoed the landlord sell off commentary and said he expected the trend could be even more pronounced as planned new taxes on investment and secondary properties came to fruition in the new year.
Melbourne house prices are tipped to rise up to $37,000 in 2024. But a landlord exodus driven by rising state government taxes that is part of the reason more homes have hit the the market than in any other city over the past year will see the city lag behind almost every other capital. The PropTrack Property Market Outlook Report has forecast 1-4 per cent for the city’s property market in the next 12 months that could bring the median house price to more than $950,000. PropTrack economic research director Cameron Kusher said while Melbourne was expected to attract less home price growth than Sydney, Brisbane, Adelaide and Perth, it could potentially double the about $17,000 (1.9 per cent) growth the Victorian capital unexpectedly notched in 2023. They had been forecast to decline 7 per cent this year.
Speaking as part of REBAA’s end of year analysis for 2023, Mr Assigal said he believed even an uptick in investor sales next year wouldn’t slow the market and predicted there could be as much as 6 per cent growth — about $55,000 for Melbourne’s $917,000 median-priced home. But he said the fate of first-home buyers in the new year could rest with the Australian Prudential Regulation Authority, who he said could price many back into the market by reducing assessment rates for home loans from the current 3 per cent above the home loan rate of the day. An interest-rate cut could also drive demand, and Mr Assigal said either scenario could make Melbourne’s undervalued far west, from Werribee to Hoppers Crossing, and outer northern suburbs, like Epping, hot property. He added that regional areas around Ballarat, followed by Bendigo and Geelong, could also benefit from squeezed homebuyer budgets.
Mr Kusher said despite the fastest increase to interest rates since at least the 1990s, rising costs to build new homes and Victoria accounting for a substantial portion of the nation’s incoming migration would combine to drive home values up. “The fact we are at or near peak interest rate levels could see more people looking to buy next year,” he said. While the Outlook report has flagged a tough year for firsthome buyers around Australia, Mr Kusher said record-low rental vacancy rates could drive some of them to find a way to buy a home and escape from increasingly uncertain tenancies.
article source : www.realestate.com.au
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