The Melbourne suburbs that will see the biggest uplift in apartment values after interest rate cuts
With interest rate cuts set to drive the market in 2025, certain Melbourne suburbs are poised to outperform others across the city.
Research by property data analytics firm, CoreLogic, shows that higher-priced markets, particularly those with a high concentration of investors, tend to be the most responsive to cash rate reductions.
Their research shows units in the Glen Eira area will see the most price growth in units, over 12 per cent, should the RBA cut the official cash rate by one per cent (four 25 basis point cuts).
The forecasted price growth bodes for those suburbs in and around Cauflield.
Those looking at purchasing an apartment in EVA Elsternwick, in the heart of Elsternwick village and one of very few new apartment developments in recent years in the area, could see significant price growth in the short to medium term.
EVA, on Glen Huntly Road a short walk to all of Elsternwick's cafes and the train station, offers two and three-bedroom apartments starting from $845,000.
Following Glen Eira, Whitehorse-West is expected to see a 10.6 per cent increase, while Manningham-East is projected to rise by 9.8 per cent.
Hobsons Bay has also been identified as a growth area, with unit values forecast to climb by 8.3 per cent.
On the fringe of the Hobsons Bay local government area is Yarraville, where Bradmill Yarraville has been one of the most popular new developments in the surrouning area.
Families in particular have shown strong interest to the townhouses on offer in the small masterplanned community currently being developed by Frasers Property.
The first two stages at Bradmill, Pioneer and Monfort Townhomes, have been designed by renowned architecture firm Rothelowman. They have several different configurations, offering either three or four bedrooms across two or three levels.
The homes are designed for family living, with open-plan kitchen, living and dining areas flowing onto private gardens, courtyards, or balconies. Single or double garages also offer convenient access to the indoors.
The neighbourhood of Bradmill will be one of the most connected in Melbourne's inner west. Future Bradmill residents will have exclusive access to Bradmill Social, a hub for exercising, co-working, and group events.
Linear Park will run through Bradmilll, connecting residents directly to the vast green spaces and sports grounds of adjacent McIvor Reserve, and a stroll to Bradmill Quarter’s 8,000 sqm retail precinct and the vibrant dining and community spaces of The Arbory.
Other suburbs expected to benefit from rate cuts include Maroondah (9.1 per cent), Bayside (8.5 per cent), Cardinia (8.4 per cent), Casey-North (8.3 per cent), Dandenong (7.8 per cent), and Kingston (7.4 per cent).
CoreLogic's Head of Research, Eliza Owen, says certain markets will see a bigger boost from rate reductions than others, and it may be because of market characteristics like price point, location and investor interest.
"CoreLogic estimates based on previous periods of rate reductions that national dwelling values would increase an average of 6.1 per cent for each one percentage point decline in the cash rate," Owen says.
"Relatively expensive markets have historically shown stronger responses to reduced cash rate settings. A reduction in the cash rate could spur a recovery trend in the high end of the Sydney and Melbourne housing market, which tend to be the bellwether for broader market recoveries in those cities."
