Happy New Year and welcome to our first edition of the Market Pulse for 2024.

There were a reasonable number of auctions on the weekend, but these were predominately in coastal areas or outer suburbs of Melbourne. A clearance rate of 83% was reported through the REIV, with 797 auctions held (well up on the 364 held for the same week last year).

We believe the market has opened positively. The good number of open homes, talk of stabilised interest rates (and maybe cuts ahead) and plenty of new properties (as well as some old and/or rebranded properties) hitting the internet, support this.

 

With a good run now of four auction weeks until Labour Day Weekend, we should get a fair indication of just how positive things are.

From our discussions, the trend of ex-rental properties coming up for sale continues.

These are not necessarily ‘turn key’ with many of them displaying outdated kitchens and bathrooms. As a minimum, however, they could provide an opportunity for ‘first time buyers’ to get into the market and a slightly more affordable price as buyers are still less receptive toward taking on the ‘daggy’ homes needing any building works.

Although awaiting royal assent, a positive change to affect buyers of homes, commencing 1 January 2024, is they will no longer have to contribute a pro rata proportion of the land tax should the property not be the vendor’s permanent place of residence.

This is likely to encourage vendors considering selling rental or second properties to place their properties on the market earlier enough in the year that the property settlement doesn’t carry over into the next calendar year, as they will now be liable for the full amount if it does.

This should also help improve some of the supply issues that plagued 2023.

Of more importance, however, with the expected increase in volume, is working through the volume to determine if any of them are suitable. More volume doesn’t necessarily make it easier for buyers to find and purchase the right home. It can actually become more confusing. Having a good plan and recognising if it has the ability to offer your non-negotiables will ensure your purchase works for you. It is a very expensive exercise if you get it wrong, both emotionally and financially.

For new buyers to the market, it can be helpful to remember that the agent is working to get the best price for their vendor, and while you may feel like they are your new best friend, if you aren’t the best option to purchase the property you are interested in, they will not hesitate in using you to help motivate the better option to pay to the price.

Is this unfair?  No. The agent is working for and being paid by the vendor to get the best outcome for the vendor.

 

Some of the better properties currently on the market; an architect’s view

102 Cochrane Street Brighton, quoting $3.3-3.5m – Nick Johnstone/Katie Mactier, Nick Johnston Real Estate

 

‘Off-market’ Properties:

• Single level Victorian, 4-2-2, approx. 630sqm, Camberwell – circa $3.3m
• Single fronter, 3-1-1, approx. 320sqm, Hawthorn – circa $1.8m
• Renovate or new home site, Sackville Ward, ~780sqm, Kew – circa $5.5m
• Updated single level, 3-2-2, Sackville Ward, ~600sqm, Kew – circa $4.1m
• Brick art deco semi, 3-2-1, ~250sqm, Hawthorn East – circa $1.8m
• Renovated 2-2-2 art deco townhouse, Malvern East – circa $1.45m
• Two storey Edwardian, 4-2-1, approx. 390sqm, Malvern – circa $2.65m
• Brick Victorian, 3-2-2, approx. 480sqm, Armadale – circa $3.0m
• Victorian single frontier, 3-1-0, renovated, Port Melbourne – circa $1.65m
• Family home, 4-2-2, pool, walk to beach/shops, Black Rock – circa $2.9m
• Ready to reno or new home site, ~670sqm, Brighton – circa $3.0m
• Modern 4-3-2 Townhouse, near schools, Brighton East – circa $2.6m
• Castlefield Estate Californian Bungalow, 4-2-2, pool, Hampton – circa $2.5m
• Single level Art Deco, 3-2-1, approx. 350sqm, St Kilda East – circa $2.15m
• Renovated Art Deco semi, 2-1-1, Elsternwick – circa $1.2m
• Contemporary 2-2-1 Townhouse, near village, Yarraville – circa $1.1m