City Beat November 2024: Melbourne property market continues to soften, but units hold up better than houses
The Melbourne property market has continued to soften in 2024, with conditions proving challenging for sellers across the city. All dwelling types in Melbourne have experienced negative price growth, signaling a broader downturn that is also impacting Sydney.
Melbourne’s unit market, which includes both apartments and townhouses and is primarily measured in the established sector, has been the weakest in the country over the past quarter. According to CoreLogic data, unit prices have contracted by -0.7 per cent. While this marks the worst performance nationally, the house market has fared only slightly better, with a -1.2 per cent decline in the same period.
In November, the downturn in Melbourne's unit market was marginal, with prices slipping by just -0.1 per cent. However, the house market saw a steeper decline of -0.5 per cent. Typically, when market conditions weaken, houses tend to experience more significant drops compared to units, largely due to their higher affordability. This pattern often follows a period of prolonged price growth, with buyers shifting to more affordable options like units when the market softens.
Despite the ongoing weakness in Melbourne’s property market, factors such as high population growth and a significant supply shortage are prompting many analysts and property experts to question whether the city now presents attractive opportunities for buyers.
The median value for units in Melbourne is now $610,000, according to CoreLogic, placing it behind Brisbane, where the median value has risen to $677,000.
What happened in Melbourne’s off the plan apartment market in November?
Despite challening conditions in the established space, there was plenty of activity in Melbourne's off the plan market as developers look to cash in on the VIC Government's abolition of stamp duty on off the plan apartments for 12 months.
November also saw the Vic Gov unveil its Great Design Fast Track, promising expedited approvals for well-designed, affordable, and sustainable apartment and townhouse developments.
Shortly after the announcement, and no doubt will be hoping to be fasttracked, is developer Beulah, who submitted plans for a new sustainable Fitzroy apartment development.
Designed in collaboration with Breathe Architecture, the new development will feature 44 apartments, retail spaces, and eco-friendly elements like rooftop solar, rainwater harvesting, and fossil-fuel-free infrastructure.
There was continued good news to come from Highett Common, Victoria’s inaugural Net Zero Community being developed by Sunkin Property Group.
Sunkin topped out the first stage, Park House, which is over 85 per cent sold and will complete in mid-2025.
Park House is the first stage in the transformative 9.3-hectare project that will feature over 1,000 residences, landscaped parks, and exclusive amenities.
Sunkin also launched the next stage of Highett Common, The Mews Collection, introducing 185 new apartments, including luxury residences designed for downsizers and owner-occupiers.
The second stage will also bring the first neighbourhood facilities that will be accessible to the wider Highett community.
There will be a new two-level public library, part of the Bayside Community Facility, which will have study areas, rooms for community classes and meetings, and an adjacent café.
The Northern Residents’ Amenity is part of the Mews Collection stage and will comprise a lap indoor pool, a gym with a wellness area, and a bookable private dining room. The Southern Residents’ Amenity will bring another gym with green views, an outdoor swimming pool, wellness hubs and a cinema.
There was also plenty of activity outside of Melbourne's inner-ring in November.
Samuel Property unveiled Hali Dromana, a rare townhouse community on the Mornington Peninsula.
The $120 million development, with 69 three and four-bedroom townhouses designed by Cera Stribley, is soon to launch to the market through Blair Property Group.
Samuel Managing Director, Illan Samuel, says Hali Dromana is a homage to the beloved 1960s holiday home where Australian summers were defined.
"Hali will give Dromana a fresh identity that will stand the test of time," Samuel says.
Down in Geelong, Motif, one of the few new apartment developments in the area, released its penthouses to the market, a collection which has already been popular with downsizers.
Just four apartments sit on the penthouse level, and offer the ideal lockup and leave lifestyle which has proven scarce in the Geelong region for many years.
The penthouses, three three-bedroom apartments and sole two-bedroom apartment, offer the best views from the sixth and highest level of the boutique York Street building designed by Rothelowman.
The joint venture between DM Property and Icon Kajima has proven a succesful one, over 60 per cent of the 129 apartments sold since its launch just over 12 months ago.
Hamilton Marino is expected a late-2025 completion for Motif.
Read more: City Beat October 2024: Units fare better than houses in soft Melbourne property market
