What’s Happening in the Melbourne Property Market Right Now?
The latest data is in, and it’s fascinating to see how some Melbourne suburbs are outperforming others. As a buyer's agent, one of the first questions I often hear is, “How’s the market?” The truth is, the property market is moving at different speeds across Melbourne and the Mornington Peninsula, depending on the suburb and price point.
The most recent report from the Real Estate Institute of Victoria (REIV) highlights key shifts in median property prices over the last quarter. While some areas have seen substantial growth, others have experienced a noticeable dip. Here’s a snapshot of some standout performers…
Suburbs with the Highest Quarterly Increases:
Bittern: +55.5% (vs annual change of -0.5%)
Essendon North: +41.2% (vs annual change of 2.5%)
Albert Park: +27.8% (vs annual change of -6.6%)
Highett: +22.1% (vs annual change of 3.7%)
Sandringham: +18.6% (vs annual change of 11.8%)
Yarra Junction: +16.7% (vs annual change of -0.8%)
Suburbs with the Largest Quarterly Declines:
Mont Albert: -29% (vs annual change of 3%)
Eaglemont: -27.8% (vs annual change of -10.2%)
Clifton Hill: -27% (vs annual change of -0.6%)
Caulfield: -24.1% (vs annual change of 23.5%)
Elwood: -23.4% (vs annual change of -3.5%)
Abbotsford: -21.4% (vs annual change of 3.5%)
Middle Park: -19.9% (vs annual change of -13%)
Interestingly, many of the suburbs with the biggest declines recorded fewer than 30 sales during the quarter, which skews the median house price data. This is why, when you look at annual changes in areas like Bittern or Abbotsford, the quarterly results may not give a full picture of their longer-term performance.
A significant portion of stock levels – particularly those under $1M - is investor stock, as landlords struggle to hold on given high interest rates. Add to that, the state government’s land tax hikes which effectively doubled land tax overnight. With landlords looking to offload the financial burden and sell these investments, combined with a rental shortage, many tenants took advantage of government deposit schemes to get into the housing market.
As always, understanding these nuances is key to making informed decisions. Whether you're buying or selling, it's important to stay across the data and trends specific to your area.
If you would like to discuss the property market in more detail, feel free to contact me.