The September quarter saw us farewell winter and welcome spring, the season that many in Real Estate circles look forward to the most. It’s a time when the weather starts to warm, the flowers start to blossom, and people often choose to enact their plans to buy and sell property, making it a busy and exciting period for all involved.
Across the September quarter, Melbourne’s median house price decreased by 7.4%; a result that was not unexpected and was reflected across the nation with all capital cities seeing a decline; however, five of our nine core suburbs experienced positive change, going against the trend.
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When looking across a 12-month period, all our core suburbs experienced stability or growth. Wantirna reported the highest annual change for the third subsequent quarter, recording an increase of 14.6% for the 12-month period.
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What is also pleasing, is that Melbourne was one of only two capital cities to see a positive monthly and annual change in its September auction house price, with a 5% increase when compared to August’s results. Melbourne’s auction clearance rate also improved for the second successive month, suggesting this may signal the beginning of seller and buyer price expectations aligning which is a positive sign for the spring market.
On the rental front, September saw Melbourne’s vacancy rate steady after eight consecutive monthly drops. Currently it remains at 1.3%, the lowest point since March 2019. Domain figures report that house rents have been pushed to an average of $470 per week, a new record high courtesy of the tight rental conditions Melbourne is experiencing. This reflects an increase seen each quarter for the past year, something that has not been seen since 2007. Unit rental prices are currently $5 less than they were in pre-pandemic times, resting at $425 per week; however, Domain believes they will set a record high next quarter based on the pace they have been rising at.
The Financial Review recently reported that seasoned rental providers are now taking advantage of the lull in the market to add additional properties to their portfolios, and that the stabilising interest rates and improving rental yields are proving irresistible to some. This may contribute to the balancing of supply and demand in the rental marketplace, however, with what is still being seen as a rental shortage in Melbourne, investors can feel confident that there will continue to be a large pool of renters to choose from, and that quality homes in popular pockets will attract good rental returns.
September saw us run our annual food drive and as always, the community didn’t let us down, responding eagerly to our calls to donate a range of non-perishable items. All goods were sorted into essentials packs and donated to two incredible local charities, Mitcham Community Meals and Gayle’s Community Share Space, both of which contribute so much to help those in our local community who struggle with food insecurity.
We also revealed the latest recipient of our Noel Jones Community Support grant. The September recipient was Doncaster Gardens Preschool, who provide an enriching and supportive learning environment where children and families forge friendships and develop a genuine sense of belonging. The kindergarten is an inclusive, safe, and nurturing space where each child is valued for their individuality and diversity is celebrated.
You can read more about the Noel Jones Community Support Program and find application dates for our next round of grants by visiting www.noeljones.com.au/communitysupportprogram.
If you have any questions about the current market, contact your local Noel Jones office, or visit our website at www.noeljones.com.au