January Report
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January report
From our corporate director Dean O’Brien
Hi All, In the latest update on Australia's housing market, CoreLogic reports a modest increase in national home prices by 0.4% for January. However, Melbourne diverged from this trend, experiencing a slight decline of 0.1% in home prices, marking the second consecutive month of depreciation in the city's housing values. The economic landscape received a notable update with the release of December quarter inflation figures, which registered at a two-year low of 4.1%. This development, announced last Wednesday, provides the Reserve Bank of Australia (RBA) with the flexibility to maintain interest rates at their current level for the immediate future, sparking discussions on the timing of potential rate cuts in 2024. The Commonwealth Bank of Australia (CBA), the country's largest lending institution, is projecting a series of interest rate reductions over the next two years. Specifically, CBA anticipates three rate cuts in 2024, followed by an additional three in 2025. This would result in a decrease in the RBA's cash rate to 3.6% from the current 4.35%, representing a reduction of three-quarters of a percent. Concurrently, CBA forecasts a 5% increase in national dwelling prices in 2024. Focusing on Melbourne's housing market, the city experienced its busiest auction weekend of the year on February 3, with 608 homes going under the hammer and achieving a clearance rate of 71.9%. The OBrien real estate network alone auctioned 34 homes, achieving a clearance rate of 73.5%. However, Melbourne's performance was not without its challenges. It ranked as the second-worst performing capital city in January, trailing behind Hobart. Despite this, the collective performance of capital cities was positive in January, with an average increase of nearly $2000 in home prices. .
This period also saw significant activity in both the US and Australian stock markets, with investors breaking all-time records. In contrast, Regional Victoria's home prices remained stagnant, with neither increases nor decreases reported. This could be attributed to investor caution, possibly influenced by the introduction of a 10-year Covid Land Tax levy in Victoria from January 1 this year. The rental market has also seen significant developments, with vacancy rates dropping to alltime lows of just under 1%. This tightening of housing supply is expected to persist, as evidenced by a sharp 18.4% decrease in Victoria's dwelling approvals in December, a figure that significantly surpasses the national decline of 9.5%, according to the Australian Bureau of Statistics. It's crucial for to stay informed and consider seeking independent legal, financial, taxation, or other forms of advice to align with their unique investment goals and circumstances.
Regards, Dean O'Brien Corporate Director
We sell more. A snapshot of last moths sales
Average sale price
$796,650
Sale price High
Low
$2.5M
$300K
Average days on market
Price range
Sale price
47 Days on Number market of buyers
Address
Suburb
1/5 Mark Street
Bayswater
3
2
2
$690,000 - $759,000
$740,000
57
142
2/18 Maple Street
Bayswater
4
3
2
$950,000 - $1,045,000
$975,000
62
43
37 Hartsmere Drive
Berwick
4
2
2
$880,000 - $950,000
$940,000
14
30
20 Lorikeet Drive
Berwick
3
2
3
$900,000 - $990,000
$965,000
21
14
68 Quarry Hills Drive
Berwick
4
2
3
$955,000 - $1,050,000
$1,025,000
64
24
1 Lyndal Court
Berwick
3
2
4
$675,000 - $735,000
$710,000
29
70
21 Kestral Close
Blind Bight
4
2
2
$880,000 - $930,000
$900,000
11
3
5 Faraday Street
Boronia
4
2
1
$900,000 - $990,000
$1,030,000
30
46
3/184 Boronia Road
Boronia
2
2
1
$550,000 - $580,000
$562,000
106
82
3/4 Park Crescent
Boronia
3
2
2
$730,000 - $803,000
$790,000
14
21
1/52 Central Avenue
Boronia
3
1
1
$640,000 - $704,000
$710,000
51
58
31 Thornbill Drive
Carrum Downs
3
2
2
$690,000 - $750,000
$760,000
21
33
20 Trainers Way
Clyde North
3
2
2
$570,000 - $610,000
$600,000
22
64
32 Sunningdale Crescent Cranbourne
4
2
2
$975,000 - $1,025,000
$1,075,000
15
12
23 Sarno Court
Cranbourne
3
2
2
$580,000 - $630,000
$637,500
15
45
1/107 Narre Warren Road
Cranbourne
3
1
2
$435,000
$435,000
21
35
44 Circle Drive North
Cranbourne
4
2
2
$640,000 - $700,000
$670,000
21
7
5 Shiels Street
Cranbourne East
3
2
2
$690,000 - $730,000
$730,500
23
16
58 Renlik Circuit
Cranbourne North
2
1
1
$490,000 - $520,000
$497,500
23
21
5 Burke Court
Cranbourne North
3
1
4
$595,000 - $650,000
$603,100
42
18
We sell more. A snapshot of last months sales Address
Suburb
Price range
10 Fiona Drive
Cranbourne South
4
2
2
1450 Westernport Highway Cranbourne South
5
4
8
$2,500,000
2/1-3 Herbert Street
Dandenong
2
1
1
13 Glencoe Grove
Dandenong North
3
2
7 Saxon Road
Drouin
4
36 Campbell Street
Garfield
56 Jefferson Road
Sale price
Days on Number market of buyers
$1,680,000 - $1,800,000 $1,550,000
55
12
$2,500,000
0
1
$290,000 - $305,000
$300,000
21
14
2
$680,000 - $740,000
$814,000
27
54
2
2
$590,000 - $650,000
$625,000
162
23
3
1
1
$550,000 - $605,000
$594,000
14
16
Garfield
4
2
2
$795,000 - $845,000
$810,000
252
23
8/27 Jefferson Road
Garfield
2
1
1
$470,000 - $495,000
$480,000
35
24
2/44 Verona Drive
Hampton Park
2
1
1
$530,000 - $580,000
$543,000
47
10
36 Red Wattlebird Crescent Langwarrin
4
2
2
$1,320,000 - $1,360,000 $1,320,000
77
70
20 Wodalla Place
Lyndhurst
4
2
2
$680,000 - $748,000
$690,000
145
64
Unit 1/1 Argus Court
Narre Warren
3
2
1
$550,000 - $590,000
$550,000
70
49
5 Manhattan Mews
Narre Warren
3
2
1
$580,000 - $638,000
$570,000
99
36
15 Greenwood Court
Narre Warren East
4
2
8
$1,650,000 - $1,750,000 $1,570,000
0
1
29 Forster Drive
Nyora
4
2
8
$1,050,000 - $1,150,000 $1,000,000
62
11
19 Mallard Avenue
Officer
3
2
1
$550,000 - $605,000
$590,000
43
77
62 Pommel Street
Pakenham
4
2
2
$580,000 - $620,000
$606,000
29
47
56 Dusseldorp Avenue
Pakenham
4
2
2
$695,000 - $750,000
$710,000
14
10
56 Bronzewing Street
Pakenham
4
2
2
$680,000 - $710,000
$710,000
14
38
13 Atlantic Drive
Pakenham
3
1
2
$495,000 - $544,500
$485,000
87
18
1/3 Park Orchard Drive
Pakenham
3
1
1
$446,000 - $490,000
$460,000
66
35
20 Balaton Drive
Pakenham
4
2
2
$665,000
$665,000
0
1
3 Vaughan Court
Pakenham
4
2
3
$630,000 - $680,000
$665,000
34
61
25 Longview Road
Warragul
4
2
2
$800,000 - $880,000
$890,000
42
5
We lease more. A snapshot of last months sales Average weekly rent.
$523
Average monthly rent.
$2,258
Rental price p/w. High
Low
$780
$410
Number of suburbs leased in.
22
Leased price p/w
Leased price p/m
2
$630
$2,737
2
1
$560
$2,433
2
1
1
$430
$1,868
Berwick
4
2
2
$650
$2,824
8 Sing Crescent
Berwick
3
2
2
$550
$2,389
1 Konac Court
Berwick
3
2
2
$560
$2,433
46 Allunga Parade
Berwick
3
2
2
$550
$2,389
14 Dixon Grove
Blackburn
3
1
1
$500
$2,172
3/37 Chandler Road
Boronia
2
1
1
$450
$1,955
20 Rothan Avenue
Boronia
3
2
3
$625
$2,715
11 Ridgeline Drive
Botanic Ridge
6
2
2
$780
$3,388
11 Milford Street
Clyde
4
2
2
$580
$2,520
30 Mattamber Street
Clyde
3
2
1
$480
$2,085
8 Rawls Street
Cranbourne
4
2
2
$575
$2,498
22 Virginia Street
Cranbourne
3
1
1
$500
$2,172
9 Evelyne Avenue
Cranbourne
3
2
3
$495
$2,150
5 Mercury Road
Cranbourne East
4
2
2
$550
$2,389
Unit 14/10-20 Mickleham
Cranbourne North
3
1
2
$460
$1,998
9 Hunter Court
Cranbourne North
3
1
1
$515
$2,237
1/56 Elizabeth Street
Cranbourne North
3
2
1
$440
$1,911
Address
Suburb
1/13 Church Street
Bayswater
3
2
4 Fairlawn Place
Bayswater
3
Unit 5/12-14 Elmhurst Road
Bayswater North
37 Lemongrove Way
We lease more. A snapshot of last months sales
Leased price p/w
Leased price p/m
2
$510
$2,216
2
1
$480
$2,085
2
1
1
$420
$1,825
Endeavour Hills
3
2
1
$460
$1,998
2 Rossiter Avenue
Endeavour Hills
3
1
2
$500
$2,172
13 Tiarne Crescent
Hampton Park
3
2
1
$480
$2,085
8 Sybella Avenue
Koo Wee Rup
3
1
2
$550
$2,389
6 Glenbrook Crescent
Lynbrook
4
2
2
$630
$2,737
25 Kent Road
Narre Warren
5
2
2
$630
$2,737
7/31-45 Vimini Drive
Narre Warren
3
1
2
$490
$2,129
11 Beverly Court
Narre Warren
3
1
2
$495
$2,150
4 Rosaleen Court
Narre Warren
3
2
2
$450
$1,955
4 Lighthorse Crescent
Narre Warren South
3
1
1
$460
$1,998
43 Sneddon Drive
Narre Warren South
4
2
1
$550
$2,389
8 Pinot Way
Pakenham
3
2
2
$450
$1,955
27 Harlesden Circuit
Pakenham
2
1
1
$410
$1,781
11 Stanhope Place
Pakenham
4
2
2
$550
$2,389
4/35 Sunbeam Avenue
Ringwood East
2
2
1
$500
$2,172
11 Karabil Close
Scoresby
3
2
4
$510
$2,216
1 Ingrid Street
Scoresby
3
1
1
$480
$2,085
41A Bayview
Tooradin
3
1
0
$520
$2,259
55 Tate Avenue
Wantirna South
3
2
2
$540
$2,346
Address
Suburb
51 Raisell Road
Cranbourne West
3
2
40 Jupiter Crescent
Cranbourne West
3
9a Shetland
Endeavour Hills
7a Nadia
Victoria at heart of housing shortage as nation’s home building woes expected to persist for several years
“Compounded by record levels of migration, Australia’s housing undersupply is expected to persist for several years.” However, Victoria might be better positioned than many other states to reach higher new home construction levels in the coming years, as its capital city had the nation’s highest supply of land for development and also offered more affordable land than was available around Sydney. Urban Development Institute of Australia Victorian chief executive Linda Allison said with interest rates high, pressure on construction costs and the availability of trades people challenged, low numbers of homes being approved in December weren’t surprising.
ustralia’s housing shortage is expected to “persist for several years” after the nation’s new home market recorded its softest annual approvals in more than a decade in 2023. Authorities signed off on just 162,194 homes around the country, a 29,525 (15.4 per cent) reduction from 2022 and far below record levels in 2021. And a struggling Victoria is leading the figures down, with the 3559 new builds given the green light in December at their lowest level for the month since 2011. Australian Bureau of Statistic figures show just 3559 homes were green lit for construction across the state in the final month of the year, with the only softer month in 2023 being January when authorities ticked off just 2895 new builds. Often one of the year’s busier months, there were more than 5000 homes approved in both of the prior two Decembers. More than 6000 were given the nod for construction in December 2016 and 2019. The last time December approvals were below 3500 was in 2011. Oxford Economics Australia senior economist Maree Kilroy said Victoria’s decline, along with that of NSW’s, was doing a lot of the “heavy lifting” for the nation’s tumbling construction numbers. Ms Kilroy said there was a pipeline of work not yet done around the country that would provide a short-term boost to housing supply over the next six months, but that it would be short lived. “The trajectory of dwelling approvals points firmly to a softer 2025 for completions,” Ms Kilroy said.
“I think it’s a fairly expected result when you consider the various pressures on the housing and construction market at the moment,” Ms Allison said. “We would be cautiously optimistic that we will see these figures improve as the year progresses. But it will take some time for that to happen.” article source : www.realestate.com.au
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