Word on the street: Market, Property Management and New Projects updates for Q2 2024
During the past financial year, our Sales, Property Management and New Projects teams were exceptionally busy – and Q2 2024 was no different. But what were they getting up to, specifically? How would they summarise the past financial year? What are they expecting for the next one? We caught up with them to learn all that and more.
Sales update
One word to describe the past financial year? Balanced. Our market experts, Gary Peer, Jeremy Rosens, Leon Gouzenfiter and Leor Samuel explain exactly how it stayed that way.
What’s happening now?
The higher stock levels we saw from Q1 2024 have stayed up there. Particularly apartments and investor-grade stock. And we’ve got the clearance rates to match.
Properties are selling both before and on auction day, with first-home buyers and owner-occupiers being our main buyers this quarter.
The properties in hottest demand? Anything turn-key. With the uncertainty around building costs and the availability of materials, most people are avoiding renovation projects right now.
On the other hand, investors have taken a step back due to holding costs and interest rates. But we maintain that now is a very opportune time to buy.
Vendors are waiting for prices to increase, and buyers are waiting for prices to drop. So, to anyone out there waiting for a change in the market before securing your dream home, you could be at risk of paying more by waiting.
What were the quarter’s standout sales?
We broke the suburb record for a residential house sale when 7 Blackwood Street, Carnegie got snapped up at a 4-bidder auction for a whopping $3,750,000.
4/3 Wattle Avenue, Glen Huntly, was also a standout. With 11 bidders competing at auction, it ended up selling for $1,001,500 on a disclosed reserve of $850,000.
Another highlight sale was 50 Jasper Road, Bentleigh. Multiple bidders competed for this corner block of land, which could become 2 or 3 new dwellings down the track. It was particularly pleasing to see so many developers out there looking to create future projects.
Q2 also saw the sale of 1-12/9 Celeste Court, St Kilda East. This block of 12 apartments sold for $3,020,000 at auction with multiple bidders.
We also sold a stunning generational home on a large double block at 9-11 Cranham Street, Caulfield. This one sold before auction to a very happy new owner.
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Where to from here?
As potential interest rate drops continue to be postponed – with a rise looming if we can’t curb inflation – we’re expecting a sugar hit to the market in the form of tax cuts next financial year.
If interest rates lower, hopefully late this year or early next, that’ll be a second sugar hit, giving people more confidence and buying power.
As we enter the new financial year, we’re predicting a quiet 12 months ahead. However, this lull presents a unique opportunity for buyers to get in now and capitalise on future market upswings.
Property Management update
With the new financial year upon us, our property management experts, Jenny Caughey and Anthony Lee, are encouraging clients to remember one thing: knowledge is key!
What are the rental providers doing?
In the past 12 months, rental providers have experienced the introduction of the new land tax and increases in insurance, water, maintenance and council rates – as well as an increase in owners corporation fees.
And they’ve navigated through each one with resilience.
However, as a result, some people are re-evaluating their property investments. This has led to a temporary reduction in rental stock, particularly in the affordable rental bracket ($400 a week rent or less).
Our advice? Stick with it. Stick with your property. Stick with your (good) renters. And stick with your property manager’s recommendations.
Maintaining your property to a high standard, setting reasonable pricing and fostering positive renter relationships will help you navigate this period successfully.
What are the renters doing?
For all the reasons outlined above, we’ve noticed less movement from renters in the past 3 months.
The overarching theme is that renters would rather stay put than head back out to the market, which has subsequently resulted in properties staying on the market for a bit longer.
It also presents a unique opportunity for both renters and rental providers to find mutually beneficial arrangements.
Where to from here?
Good news: despite the high inflation and interest rates, we remain hopeful for some relief in 2025.
But in the meantime, our commitment is to continue our own professional learning and development – to ensure we always deliver you the most accurate, up-to-date information.
So, when your property manager calls to discuss compliance or other market matters, it’s in your best interest to engage. Staying informed can help you avoid substantial fines as the government steps up enforcement of rental standards with its new compliance task force.
But with us on your side, you’ll be safe and well-prepared.
New Projects update
Looking back on the past financial year – including this latest quarter – Julian Millman and his specialist team would coin it ‘the year of the downsizer’.
The big picture
Over the last 12 months, downsizers have been our main market. They’ve been particularly interested in off-the-plan luxury townhouses and apartments valued between $1 million and $6 million.
This is amidst the economic challenges we’ve seen in the past year, including increased interest rates and taxes, which presented opportunities for investors to reassess and adapt their strategies.
The same is true for first and second-home buyers. Overall, this financial year has highlighted the importance of exploring creative solutions and discovering new possibilities in the market.
Our own backyard
This quarter, we’ve been busy.
Windsor Park construction is well underway, with many apartments already being sold to happy buyers.
We’ve also just launched our Reverie project. As the only high-rise in Caulfield with views of the city, Reverie is perfect for anyone who wants to live amongst the action.
Plus, Easton Place is now complete! We’re selling these 4-bedroom gems to happy buyers looking to be close to all the shops.
Onwards and upwards
Looking ahead, we’re expecting even more activity in the existing downsizer market. In fact, that market is only building momentum, and we believe it will boom as we emerge from winter.
Luckily, that timing will coincide with the construction kick-off for our Seymour & Blanche, Olive Green and Caulfield North projects. All of these are the luxury, large apartment or townhouse stock that downsizers and rightsizers are looking for.
And that means we’re preparing ourselves for another exciting and busy quarter ahead!
