Boroondara & Stonnington
The Report
2021
Welcome
Welcome to our 2021 edition of The Report – your exclusive insight into the factors shaping the residential property market in Boroondara and Stonnington and the wider metropolitan Melbourne region.
There’s no doubt that the COVID-19 pandemic continues to have a significant impact on the property market in Melbourne. While border closures, job losses and harsh stage four restrictions presented challenges none of us could have imagined, our real estate market has defied expectations and proven to be very resilient.
Over the past 18-months, the property market in Boroondara and Stonnington has experienced tremendous capital growth. With Melburnians spending more time in their homes, there has been a sharp increase in buyers looking to upsize to larger properties offering more lifestyle amenity and accommodation. Similarly, as the pandemic played out globally, we have experienced more expats returning from overseas and looking to purchase in the Boroondara and Stonnington regions than ever before.
As a result, we have experienced our strongest market in 30 years, with exceptional price growth and stronger than average activity at both physical and digital auctions.
Latest REIV statistics for the June ’21 quarter show house prices across the Boroondara and Stonnington region increased an average of 8.8% on the March ’21 quarter, with prices up 42.2% in Hawthorn East and 29.9% in Canterbury.
The low interest rate environment and stronger than expected economic conditions have resulted in increased demand from first and second homebuyers in Boroondara and Stonnington. Coupled with a low volume of stock, looking for that next property has been a challenge for some and created a bottleneck in certain sectors of the market.
We have also seen homeowners capitalising on the strong inner Melbourne market and relocating to places like the Mornington Peninsula, where they can afford more land and lifestyle now they have flexibility in their working lives.
The Boroondara and Stonnington rental market is where we have seen the most impact from COVID-19. The exit of overseas students and an influx of short-term rentals meant there was an oversupply of property and we saw rental prices dip. However, as we work through the second half of 2021 and into early 2022 and move closer to completing the National Government's Four-Phase National COVID Response Plan, we expect to continue to see the rental market in our region improving and vacancy rates decreasing.
Provided interest rates remain low, employment stable, and people continue to reassess their lifestyles, the Boroondara and Stonnington market should continue to be vibrant and buoyant.
In this year’s Report, we examine the market in your area and investigate the infrastructure improvements that will add to liveability in Boroondara and Stonnington. Macquarie Group economist Martin Lakos looks into the factors driving price growth, and Jellis Craig CEO Nick Dowling makes his predictions about what is next for the property market.
We hope you enjoy our 2021 edition of The Report and we look forward to guiding you through the sale or purchase of your next home.
STEVEN ABBOTT
Managing Director, Jellis Craig Boroondara
ANDREW McCANN
Managing Director, Jellis Craig Stonnington
© Jellis Craig 2021