A turning point for local real estate

There is no doubt Melbourne’s residential property market has been tracking on an unprecedented upward trajectory since the start of the pandemic.

Record low interest rates, stamp duty concessions and pent-up supply have all contributed to the strongest performing property markets in history, resulting in Melbourne’s median house price soaring north of $1 million.

Locally, the market paints a similar picture.

According to Jellis Craig Essendon and Kensington director Simon Mason, clearance rates in North and West Melbourne, Kensington and Parkville are at an all-time high; days on market for property have dramatically decreased and with a distinct lack of properties on the market, we are seeing fierce competition.

“Every key indicator in the market is as strong as I have ever seen it,” Mr Mason said. “Next year there are signs of an interest rate increase and Australian Prudential Regulation Authority (APRA) has come out to restrict certain markets with lending criteria, which will likely have a dampening effect on the market at some point.”

“It’s really difficult to crystal ball where values will sit between now and 12 months’ time, however I am starting to see some signs in the market to suggest we are at the upper end of the current property cycle. Record low interest rates, resulting in speed I’ve never seen before where buyers are willing to make quick decisions, in some cases sight unseen. This is unsustainable in the long term.”

“I think there is enough strength in the market locally to suggest there won’t be any significant changes in the near future, but you will at some point start to see a slight cool in terms of fast-paced enthusiasm among buyers which will create a more balanced market.”

Mr Mason said the inner north-west property market has seen a considerable shift over the previous decade away from a notoriously insular market to one where buyers are more open to moving suburb if it fits their requirements and the property suits what they are looking for.

Although the median house prices for both North Melbourne and Kensington have surged past $1 million, the suburbs present an attractive prospect for buyers with the convenience of proximity to the CBD, attractive lifestyle and outstanding value for money, compared to its counterparts in the eastern suburbs.

Jellis Craig sales consultant Carmel Morganti told North West City News that the growing allure of a move into the area came down to a few simple elements.

“The village and community atmosphere are the main drawcard for buyers moving into the area,” Ms Morganti said. “Strips like Bellair St, Pinoak Cres and Errol St with their cafes and bars, all of the elements you’d find in Northcote, Carlton or Brunswick, you are finding here with the same or closer proximity to the city.”

“It’s a beautifully paced area and I think people appreciate the authenticity of the area which has a distinct lack of pretention.”

Having serviced the inner city and Moonee Valley areas for more than 20 years and covering the suburbs of Kensington, Flemington, Moonee Ponds, North Melbourne, West Melbourne, Parkville, Essendon, Strathmore, Ascot Vale, Maribyrnong and surrounds, the team at Jellis Craig continues to forge strong bonds with local sellers, buyers, renters, and the wider community.

A culmination of hard work and an incredibly active property market, Jellis Craig Essendon and Kensington saw record sales in October, with sales in excess of 50 properties for the month.

“We pride ourselves on being a source of truth for clients in the area, to provide the right advice as they are considering their options, either short, mid or long term, they have that sound ear to run through suggestions that crystalise what the best options are for them,” Mr Mason said.

We are here for the long haul from a business perspective, we all live in the district and want to add as much value to the community as possible.

“Having that local experience as people come into the area, being able to offer the right advice for clients and assist them through that buying and selling journey is where we see our benefit to the community.”

Further afield from the confines of this masthead’s remit, Jellis Craig has continued its record-breaking ways, with a reported suburb smashing sale in Ascot Vale.

With the final figure still undisclosed, Jellis Craig Essendon and Kensington sales consultant Jerome Feery confirmed the sale of the Rothwell Hill property had surpassed the previous record of $4.6 million.

“It’s a simply extraordinary home with no expense spared as you would expect when you plan to live in a home for a very long time,” Mr Feery said.

“Unfortunately for this particular family’s case, COVID seemed to change their perspective and they wanted to live with a bit of acreage.”

The owners listed the five-bedroom house following a complete transformation, with $4.95m to $5.445m price tag •

For more information visit: jelliscraig.com.au/office/kensington