An exceptional summer selling season is set to deliver momentum, buyers, and top results for property sellers this autumn. International and returning Australian expatriate buyers have given a boost to the market in Melbourne’s blue-chip suburbs. Strong inspection numbers and resulting sales across Stonnington and Boroondara over summer are expected to flow into autumn, according to RT Edgar Toorak director Sarah Case.
“These buyers are out in force and have contributed to the doubling of inspection numbers in recent weeks.”
An estimated 50 per cent of interest for the Toorak agency’s listings is from international and expatriate buyers.
“Buyer confidence appears to have been restored with people also feeling more reassured to buy and sell in the same market,” Ms Case said.
“The lack of stock and ready-to-go buyers have also helped to maintain a higher level of pricing than previously expected.”
She cited Toorak as an example, with the suburb maintaining its spot as Victoria’s top suburb and properties delivering consistently strong prices.
“Some buyers will pay beyond the asking price for fully renovated or new homes, because of the hesitation around undergoing their own renovation due to increased building costs,” Ms Case added.
Buyer inspection numbers lift as confidence returns
“The continued lack of stock has seen 2-3 buyers expressing interest for the same property, and more recently we are converting these expression of interest campaigns to private boardroom auctions, which is exceeding vendor expectations.”
With Stonnington and Boroondara suburbs blessed with top private and public schools, families who are moving for their children’s educational needs are driving a significant segment of the market.
The publication of Melbourne’s best schools list also impacts a family’s decision about which suburb to buy into after selling up.
“Downsizers also continue to drive this market as locals are usually relocating from larger properties to smaller homes, making for a seamless changeover within the same market,” Ms Case added.
Exceptional sales and off-market deals
Among the city’s top sales so far in 2023 was an off-the-plan East Melbourne penthouse that was sold by Ms Case for $19 million. Located in a premier inner-city locale, a local family set a new apartment benchmark with the purchase at the 380 Albert Street development.
A three-bedroom home at 33 Hawksburn Road, South Yarra, attracted three buyers and sold via expression of interest for more than $7 million.
“An unrenovated home around the corner at 4 Cassell Street also achieved a very good price in an off-market deal,” Ms Case said.
Underbidders left with little stock to choose from
A Provincial-style home at 17 Avalon Road, Armadale took to a boardroom auction and sold for an undisclosed amount, within the quoted range, leaving three-underbidders eager to buy. 40 Head Street, Brighton, also went under offer, it drew seven offers.
With a notable list of buyers on its database, RT Edgar took a buyer through 43 Finch Street, Malvern East, which had been unsuccessfully listed with another agency.
It achieved an exceptional price in the $5 million range in an off-market sale.
And in Balwyn, a four-bidder contest gave the vendor a $400,000 windfall above their reserve, with the 2 Alandale Avenue home selling for $3.51 million.
With scores of underbidders still hunting for properties, there are many opportunities for owners to list and snap up strong prices.
While larger luxury homes have notched sterling prices, smaller homes have also surprised with excellent sales.
“There are sellers who are reluctant to go to campaign and prefer an off-market transaction, however, based on previous results, going to market is creating competition and drawing multiple buyers vying for the same property.”
In Toorak, a property at 3 Nareeb Court also returned a great result when it fetched just below $7 million.
And a `next gen’ buyer also splashed a high seven-figure sum on a property in need of a renovation at 21 Montalto Avenue in the same suburb.
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