Market starts strong for 2025 but will it last?

By Alexandra Ruffell | 24 February 2025

Welcome to our first Market Pulse for 2025.

The market has commenced as nearly every February market has over the past 20 years – with renewed energy, some new buyers and plenty of optimism.

Over the past three weeks, we have seen a number of very strong results, properties sold before auction or EOI closing dates, and strength in competition at auction.

These solid results tend to drag up buyer sentiment, giving a flow-on effect across the market. While there have been some quality homes among the stock on offer, we think quality offerings overall are few and far between.

An interest rate reduction, just at the right time, has provided agents with a narrative that now is a good time to buy or sell.

The later date for Easter this year will also provide two months of an almost uninterrupted selling campaigns for vendors.

 

It’s almost perfect!

 

However, under the perfect picture, there are some cracks.

  • Stock levels have increased. This is true. But much of the stock is ex-rental, ex-holiday, or ready for the next renovation / rebuild to meet current lifestyle requirements. Many properties are located on main roads – ideal for developers (in decline, due to rising costs) but not for family home buyers (who don’t want to buy on unsafe, noisy locations). Many homes need work and buyers are still nervous of building costs and time blowouts, and lack confidence they will find a builder who will be able to complete the works.
  • As at 1st April, for the next two years non-residents will be banned from purchasing existing established homes (potentially further limiting buyers for long-time vendors wishing to downsize).
  • Although we have had an interest rate cut, the general consensus in the industry is another won’t be likely until later in the year.
  • The looming election. Historically, this is a slow time in the market as buyers and sellers are both wary of what might happen in the future, depending on which party is successful. Things tend to ‘freeze’ up.

 

The break between the first quarter and second for the year is also unusually long, as school holidays (commencing 5th April), Easter holidays and Anzac Day roll into each other, taking us through to almost May.

When the market returns, other distractions will also have set in, such as the footy season, colder weather and thoughts of holidays north or overseas, and non-residents no longer able to purchase.

With so many variables coming into play after Easter, we are not confident that the current spike will continue and we may see more of a mixed market for the remainder of 2025.

 

Highlights:

 

  • 5 Stawell Street Prahran, quoted $1.5-1.65m – auction sale, undisclosed mid $1.8ms
  • 271 Tooronga Road Glen Iris , quoted $1.8-1.9m – auction sale, undisclosed almost $2.25m
  • 426 Whitehorse Road Surrey Hills, quoted $2.0-2.2m – auction sale, undisclosed over $2.5m
  • 20 Lister Street Kew East, quoted $1.8-1.95m – auction sale $2.375m
  • 80 Great Valley Road Glen Iris, quoted $3.0-3.3m, $3.3m – auction sale $4.01m
  • 19 Arama Street Balwyn North, quoted $2.0-2.2m – auction sale $2.48m
  • 60 Black Street Brighton, quoted $2.0-2.2m – auction sale, undisclosed over $2.5m
  • 18 Shasta Avenue Brighton East, quoted $1.75-1.9m – auction sale, undisclosed over $2.35m
  • 68 Fenwick Street Clifton Hill, originally quoted $1.5-1.65m, increased to $1.6-1.76m –auction sale $2.31m
  • 5/65 Royal Avenue Sandringham, originally quoted $1.15-1.25m, increased to $1.25-1.29m – auction sale, undisclosed over $1.51m
  • 46 Harts Parade Hawthorn East – quoted in the high $3m’s and sold for just under $4.4m

 

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

 

27 Findon Street Malvern East – Carla Fetta, Jellis Craig

34 Kinkora Road Hawthorn – Mike Beardsley, Jellis Craig

248 Esplanade East Port Melbourne – Warwick Gardiner, Jellis Craig

27 Collingwood Street Sandringham – Paul Bond, Hodges

 

‘Off-market’ Properties:

  • Single level, period, 5-2-1, pool, ~975sqm, Kew – circa $4.2m
  • Renovated 1920s 5-3-2, pool, ~940sqm, Kew – circa $4.4m
  • Modern apt. in small block, 3-2-2, Kew – circa $2.0m
  • Freestanding period 3-2-2, Camberwell – circa $1.95m
  • Californian Bungalow, 4-2-2, ~720sqm, north, Glen Iris – circa $2.35m
  • Family sized TH, 4-3-1, north rear, Malvern East – circa $2.55m
  • 2-storey Victorian Terrace, 3-2-0, South Yarra – circa $1.7m
  • North facing apartment w views, 3-2-2, Armadale – circa $1.2m
  • North facing apartment, 3-2-3, Prahran – circa 1.8m
  • Updated older style apartment 2-2-2, South Yarra – circa $1.38m
  • Timber single fronter, 3-2-1, part renovated, ~160sqm, Richmond – circa $1.75m
  • Warehouse conversion, 3 levels, 3-2-1, Brunswick – circa $2.45m
  • 3 level TH/apartment, 3-2-1, north balconies, views, Northcote – circa $1.25m
  • 20th floor apartment 3-2-2, Bay views, South Melbourne – circa $1.59m
  • Single level 1930s 3-2-2, 3 living, 2 studies, Elsternwick – circa $1.9m
  • Freestanding TH, 4-3-2, north rear, Elsternwick – circa $1.95m
  • New family sized TH, 4-3-4 (basement), ~400sqm, Bentleigh – circa $3.05m
  • Cal Bung 4-2-2 plus bungalow, ~650sqm, Bentleigh – circa $2.05m
  • Updated Cal Bung, 3-1-1, McKinnon Sec Zone, McKinnon – circa $1.425m
  • Contemporary 4-2-2, pool, ~650sqm, Brighton East – circa $3.5m
  • French style 4-3-6, pool, north ~530sqm, Brighton – circa $6.75m
  • Contemporary single level, 4-4-2, ~640sqm, Brighton – circa $4.05m
  • Modern single level, 4-2-2, pool, ~790sqm, Hampton – circa $3m
  • Contemporary 4-3-2, ~520sqm, near Bay, Beaumaris – circa $3.45m
  • Near new TH, 4-3-2, cathedral ceilings, Beaumaris – circa $2.35m
  • Contemporary 4-3-2, north rear, near village, Black Rock – circa $2.15m

 

 

Auction Spotlights:

 

5 Range Street Camberwell

In hot sticky late summer conditions. Auctioneer Scott Patterson gave a concise spiel in front a smallish crowd of maybe 50 people. What was on offer was 860m2 approx. with a well-kept Merchant Builder house. Quote was $3.0-3.3m which seemed about right – while the land characteristics were good here (wide block, north facing to rear), this part of Camberwell is not as strong as others (due to being a bit further away from prominent private schools). Opening on a vendor bid of $3.0m, it took a while, yet some soft bidding saw this property trot along with a few bidders and ultimately pass in at $3.15m. Sold after auction for an undisclosed amount within the quoted range.

Good result for buyer and seller alike.

 

1/7 Southey Street Sandringham

After early offers brought the home on the market, the auction was pulled forward over a week to deliver a transparent process for the prospective purchasers. Well positioned to the beach, shops and Sandringham station, this property is underpinned by its prime location. The villa itself ticks many boxed – single level, up to three bedrooms, spacious living, north rear, front one of three with own driveway and street access. While certainly liveable, the inside is looking for a thorough update. The home had been quoted $1.2-1.32m during the open campaign.

Christian Hegarty headed up the Buxton team for the auction, commencing proceedings at $1.35m, the point where early offers had brought it on the market. Two parties were keen to secure the keys – a downsizer couple versus a young professional couple. Swift bidding brought the home over $1.41m where both groups then clearly started to hurt.  $1,000 and $2,000 bids slowly inched along until bidder two, the young couple, secured the property for $1.427m.  They are likely to possess more energy and enthusiasm for the renovation work now required for the excellent long term potential.

 

 

Posted in Market Pulse