Archive for April 2025

It seems like 2025 commenced only a few weeks ago.

It has, however, been a long first quarter as far as real estate goes. Because Easter has fallen so late in the year, we’ve had 10 weeks of almost uninterrupted campaigning. There has been plenty happening and most selling agents we have talked to have enjoyed very profitable times.

With Saturday our last ‘big’ auction weekend, it will quieten down quite significantly as agents, vendors and buyers alike head away for the school holidays and the Easter break.

The past two weeks has seen the property market turn from a public (or auction) market to a private or ‘off market / forthcoming’ market, whereby properties are quietly for sale. While many of these are just testing the market, there have been a few gems among the options.

How has the Melbourne market tracked this year?

Overall, we feel the first quarter was a stronger version of the end of 2024.

What has not gone so well are properties needing serious renovation (particularly if they don’t have other good fundamentals such as land size, location and orientation), dated villa units and apartments.

That said, the market has been very strong for good properties. Some good examples in recent weeks:

There has been a lot more stock on the market this quarter with a reasonable amount of ‘good’ stock. That is, stock that a majority of buyers are looking for – the single storey downsizer, ready to move into family home, etc.

What buyers believe to be a good property is continuing to evolve. The most fought over properties at auction were once the properties often recognised as ‘the worst house in the best street’.

What we mean by that is a property with good fundamentals such as generous land size, good orientation, in well located precincts of suburbs close to amenities. These properties, whether the home was new, old, needing cosmetic renovation, major renovation or a new build site attracted multiple and often frenzied bidding from buyers.

Now, given the unknown factors and high building costs to build or renovate, the demand has lessened. And perhaps for the first time ever, there are many ‘unrealised’ or unbuilt projects out there.

If, however, the property has been recently renovated (ie move in, nothing to do), in an A grade location, the demand from buyers has actually intensified.

What do we expect for the second quarter? With so many uncertainties ahead, such as the Federal Election, wars ongoing in Gaza and Ukraine and unknown effects from the new Trump global tariffs changes, we may start to see the market falter a little as we head into the second quarter.

The tightening of rules for overseas buyers also came into effect on 1 April, making it, on the surface, harder for non-residents to purchase. That said, most buyers live locally, so is this really going to have much of an effect? Perhaps the big change for slowing foreign investment happened a few years ago when the Australian Golden Visa program ended. Whether this will slow demand in suburbs where demand has been high (eg Balwyn North, Kew, Toorak etc) is yet to be determined.

Buyers are also becoming frustrated with expression of interest and smoke and mirror campaigns. Quoting among agents is erratic. Some agents are more accurate, some can be hundreds of thousands off the mark, while others are narrowing quote prices down to within a $20,000 to $30,000 range, yet the vendor is nowhere near that price, making it even harder for buyers to work through values, particularly if there is no transparent competition.

We have noticed, however, that buyers are prepared to bid and pay strongly if the property is good, although nearly all of them would still prefer to do it under transparent conditions.

In the blink of an eye, it will be the end of the financial year, where there are expected to be further changes that could affect the market. There are the proposed changes to planning laws and who will be in charge, with the State Government taking back control from the local councils, with the goal to make it easier and quicker for applicants to design and build.

In the meantime, for those who celebrate, Happy Easter, enjoy the holidays and we look forward to an interesting second quarter of real estate.

 

 

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

9 Goldthorns Avenue Kew – Mike Beardsley , Jellis Craig

24 Clarence Street Malvern East – Kevin O’Brien, Jellis Craig

184/85 Rouse Street Port Melbourne – Ben Bongiorno, Marshall White

 

A great house to renovate – an architectural concept:

1 Linda Crescent Hawthorn – Chris Barrett / Nikki McCarthy, Marshall White

 

‘Off-market’ and ‘Pre-market’ Properties:

• Victorian single fronter, freestanding, 2-1.5-1, renovated, Prahran – circa $1.5m
• Brick Victorian 3-1-1, ~165sqm, Prahran – circa $1.8m
• Contemporary 2 storey family home, 4-3-2, Armadale – circa $7.0m
• Edwardian 3-2-1, ~350sqm, Windsor – circa $2.5m
• Victorian single fronter, 3-1-0, Fitzroy North – circa $2.0m
• Contemporary family home, 4-2.5-2, ~900sqm, Surrey Hills – circa $3.3m
• Californian Bungalow on good land, 4-2-2, Hawthorn East – circa $5.0m
• Modern apartment 3-2-2, sweeping views, Hawthorn East – circa $2.2m
• Two-storey, Californian Bungalow, 4-3-2, ~625sqm, Kew – circa $2.8m
• Hawthorne brick Victorian, 4-3-2, ~880sqm, Brighton – circa $4.9m
• Renovated brick single level Edwardian, 4-2.5-1, Brighton – circa $4.9m
• Contemporary 2 storey with bungalow, 4-2-2, Brighton – circa $2.3m
• Near new Hamptons style TH, 4-3-2, near amenities, Hampton – circa $3.1m
• 2-storey apartment, some water views, 3-3-2, Sandringham – circa $1.35m
• New home site in iconic street, 470sqm, south rear, Sandringham – circa $1.5m
• Renovated villa, 2-1-1, north rear, small group, Beaumaris – circa $800k
• New home site or dated 4-2-2, Bay Views, ~780sqm, Beaumaris – circa $2.4m
• Modern family home, 4-2-4, ~600sqm, Caulfield South – circa $2.9m
• Renovated Edwardian, 5-3-2, pool, near amenities, Elwood – circa $4.5m
• Fully renovated brick period home, 3-2-1, St Kilda – circa $2.0m
• Extended and renovated Victorian 3-2-2, St Kilda East – circa $1.8m

 

Auction Spotlights:

 

27 Oak Street Hawthorn

A scattered crowd of about 30 people gathered for this auction which was conducted by Peter Vigano of Jellis Craig. On offer was a renovated period home, located on good land in the perfect part of the hill, with prized northern-rear aspect. Peter gave a concise preamble and then turned to the crowd for bidding, which were not forthcoming at all. Three vendor bids of $5.0, 5.1 and 5.2million were placed during the course of the auction, which last lasted about ten minutes, then the property was ultimately passed-in.  While this property offered a turn-key solution in a premier Melbourne suburb, factors such as a weak front facade, lack of covered car-parking and a first-floor main bedroom suite (never ideal for younger families or downsizers) could have tempered buyer interest. It could also be the price ask, which is courageous, and/or the uncertainty of the times currently. That all said this home will sell, but some things will need to change for that to happen.

 

12 Foam Street Elwood

A beautifully renovated and extended single level brick Edwardian in one of Elwood’s iconic tree-lined streets. The home is positioned near the shops and restaurants of Ormond Road, as well as the sporting amenities on St Kilda Street.  A reasonable 20 plus crowd came to see or participate in the auction, headed up by Marcus Peters from the RT Edgar group. Quoted $2.7-2.9m throughout the campaign, proceedings started with a $2.7m vendor bid. After a short break to give potential parties some thinking time, a genuine offer of $2.725m was received, very swiftly followed by another VB of $2.8m. Reluctantly, the bidder secured negotiation rights with another bid at $2.825m before the home was passed in.  Agreement could not be reached, and the home remains for sale at the original quote level at time of publishing.