MK Report
END OF FINANCIAL YEAR 2023
A Word From Peter Kleeman
As the 2023 financial year has come to an end, we are experiencing positive conditions throughout the marketplace: which is the opposite to the start of the financial year.
Even with unprecedented rate rises over the last 12 months with the cash rate increasing by 2.5% confidence has returned to our markets.
This has been fuelled by a lack of supply of homes, surging overseas migration from both permanent residents and students on temporary visas placing an upward pressure on prices and rents in an already undersupplied market.
We can see constant pressure on rents to rise, due to the increased costs on landlords to service loans and escalating government taxes.
With a lack of homes on the market we see a strong start to the next quarter that should continue for the rest of the year.
Peter KleemanHighlights and Key Takeaways:
A Comprehensive Review
In early 2022, the Reserve Bank of Australia increased the official cash rate by 25 basis points to 35 basis points, leading to an increase in mortgage interest rates. Nevertheless, due to robust market fundamentals and limited housing supply, the market has remained relatively steady: resulting in a balanced situation where the median sale price has plateaued.
CoreLogic reported that there was a significant decline in housing values, with a decrease of 9.1% recorded between May 2022 and February 2023. However, according to the index, there was a collective average increase of 0.5% in prices during the month of April, following a 0.6% rise in the preceding month of March.
As stated by Tim Lawless, Research Director at CoreLogic, it is becoming more evident that the housing market has reached a turning point, indicating a shift in its trajectory. “Not only are we seeing housing values stabilising or rising across
most areas of the country, a number of other indicators are confirming the positive shift. Auction clearance rates are holding slightly above the long run average, sentiment has lifted and home sales are trending around the previous five-year average”.
Although sales volume fluctuates throughout the seasons, typically increasing during the spring/summer and decreasing during the colder winter months, accurately forecasting market trends is challenging. Various factors, including limited housing supply, population growth and rising interest rates, are influencing prices. However, it seems that inflation has reached its peak.
Despite potential challenges, the market in Melbourne appears to be resilient, as indicated by the consistent and solid auction clearance rates observed in the first quarter of 2023.
“…the market has remained relatively steady…”
Median Unit and House Prices
(Source REIV)
Million Dollar Suburbs
(Source REIV)
Yarrambat
Eltham
Eltham North
Lower Plenty
Macleod
Heidelberg
LOWER PLENTY AND HEIDELBERG ARE IN THE TOP 10 PERFORMING SUBURBS FOR SALE PRICE GROWTH OBSERVED IN THE LAST 6 MONTHS.
Lower Plenty increasing by 5.8%
Heidelberg increasing by 8.1%
Montmorency
SUBURB MEDIAN HOUSE PRICE MEDIAN UNIT PRICE Eltham $1,180,000 $740,000 Eltham North $1,270,000 N/A Diamond Creek $1,030,000 $745,000 Yarrambat $2,060,000 N/A Doreen $728,000 $558,000 Greensborough $965,000 $708,000 Lower Plenty $1,410,000 $605,000 Mernda $685,000 $510,000 Montmorency $1,070,000 $823,000 Watsonia $835,000 $692,000 Hurstbridge $903,000 N/A South Morang $725,000 $551,000
quarterly median house
time
printing,
Note: These are based on
figures and are correct at the
of
figures are subject to change.
A Selection of Outstanding Sales
Eltham North
1 Jalna Court
5 A 3 B 2 C
Sold $2,011,000
• 106 Groups through over the entirety of the campaign.
Lower Plenty
17 View Road
5 A 5 B 9 C
Sold $7,500,000
• Suburb record.
• One of the districts highest ever sales.
Diamond Creek
6 The Rise
5 A 2 B 2 C
Sold $1,400,000
• Sold after only 13 days on the market.
• Street price record.
Greensborough
178 Plenty River Drive
4 A 2 B 3 C
Sold $1,103,000
• 60 Inspections in 3 weeks.
• Received 4 offers.
Doreen
58-60 Laurimar Hill Drive
5 A 5 B 7 C
Sold $2,100,000
• The highest residential sale price for the suburb in the last 12 months.
St Andrews
125 Jacksons Road
3 A 2 B 2 C
Sold $1,650,000
• Sold after only 11 days on the market.
• The second highest sale price for the suburb in the last 12 months.
Kinglake West
420 Coombes Road
4 A 2 B 9 C
Sold $1,820,000
• A record price in Kinglake West for a home on 20 acres.
• The highest residential sale price for the suburb in the last 12 months.
Templestowe
12 Pioneer Drive
4 A 2 B 7 C
Sold $3,700,000
• Street price record.
• 51 Groups through over the entirety of the campaign.
Eltham
7 Culla Hill
4 A 3 B 2 C
Sold $2,875,000
• Second highest sale price for the suburb in the last 12 months.
Eltham
4 Baxter Street
5 A 3 B
Sold $1,677,000
• Sold after only 10 days on the market.
• 22 Groups through the first open for inspection.
• Sold after one open home.
A Message From the Rental Department Manager
The rental property market has experienced steady growth in the last financial year, surpassing the performance of the previous year.
Our achievements reflect this upward trend, as we successfully leased a total of 232 properties, attracting the interest of 3,715 tenants who inspected our available properties for lease. Notably, our open for inspections conducted increased by an impressive 36% compared to the previous year, indicating a rising demand for rental properties in our market.
In addition to the increased demand, our average rent per week has risen by 9.64%, reaching $500.00 per week.
Despite the growth, the average days on the market have remained steady at 23 days, indicating a well-balanced rental market and consistent demand for rental properties.
As we conclude the financial year, it is crucial for property owners to stay informed and adapt strategies to maximize the benefits offered by positive market trends. As we have entered a new financial year, take this opportunity to evaluate your property management strategy and secure a competent partner who can navigate the rental market with expertise and professionalism.
Natalie Lamers
Key Dates
The land transfer duty pensioner exemption and concession thresholds will be aligned with the thresholds for first home buyers, at $600,000 and $750,000 respectively.
In addition, eligibility will be assessed on the total value of the purchase.
Contracts entered into from 1 July 2023
A new land transfer duty concession will apply for the transfer of a home valued up to $1.5 million by an immediate family member to an individual eligible to be a beneficiary of a special disability trust.
Expected start date
1 July 2023
The deduction threshold for the land transfer duty special disability trust concession will increase from $500,000 to $1.5 million for principal place of residence transfers.
Expected start date
1 July 2023
Town Square, 20 Commercial Place ELTHAM VIC 3095 Phone 9431 2444 Fax 9431 2650 2/86 Grimshaw Street GREENSBOROUGH VIC 3088 Phone 9435 7666 Fax 9435 7677 5/95 Hazel Glen Drive DOREEN VIC 3754 Phone 9717 8780 Fax 9717 8816
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