Market Report

Property Market Report: December 2023

6 December 2023
by Dee Pajevikj

When talking to the young about buying real estate we often hear from them that they are “waiting for the right time.” They’re hanging back, waiting for that perfect moment when the market suits their budget and their lifestyle and their financial commitment will be more a breeze than a burden. “Property’s too expensive at present. I’m biding my time.” Anyone wise in the ways of real estate can only reply to this mindset with the words of that elder statesman of American music John Fogerty from Creedence Clearwater Revival in a song called Someday Never Comes:

“Well, I’m here to tell you now, each and every mother’s son

That you better learn it fast, you better learn it young

‘Cause someday never comes…”

It’s a great song – a parable about the perils of sitting back and waiting on life to work out. And it’s good advice when buying real estate. Never take on a burden in middle age that you might have taken on while young. In our line of work the two things we hear people say most often are, ‘I’m so glad I got into the market when I did.’ Or, ‘I wish I’d got into the market back then.’ The first is someone giving his or her younger self a nod. The second is someone damning the indecisive young person they once were.

At Abercrombys we have had very good sales results, particularly in the upper end of the market, over the last month. Despite the musings of the RBA, and in defiance of the will-she-won’t she teasings of its new governor, there is still a strong appetite to buy houses in Melbourne’s inner suburbs. More than ever the quality of the property and its location are key to getting a good price.

First time buyers have been incentivized by rental vacancy rates being at an all-time low as well as rents being at a premium. Another factor keeping the market strong is overseas investors taking advantage of a weak Australian dollar and being reassured by the strength of our economy. These buyers are looking for renovated properties, houses and apartments that need no further work, and at Abercrombys we are seeing sensational results in that area.

At Abercrombys we are predicting a busy start to 2024 in the rental market. Demand for rental properties, in particular for family homes in the Stonnington and Boroondara areas, has never been higher. There are fewer new listings than this time last year. And with rents elevated and vacant properties about as common as thylacines, wise investors are looking to buy property to lease out. In Melbourne rents have increased by almost 12% over the last year.

We are continuing to lease high-end properties expeditiously, and at market-beating rates, through our Abercrombys database. An example of the market’s keenness and the efficacy of our database is that we recently leased a penthouse, off-market, in Lansell Road, Toorak, in two days. Given the current rental market a rental property ought to loom large on any canny investor’s future plans.