The Melbourne and Mornington Peninsula property markets have begun to find equilibrium, yet the luxury sector continues to maintain its robust momentum.

In the first half of 2024, demand and property prices at the top end of the market soared, driven by both domestic and international buyers competing for premium properties amid a persistent stock shortage.

As we look towards the spring market, the strength of the luxury sector is expected to further bolster the broader market. 

From July 2023 to July 2024, in Kay & Burton’s core metro markets - including Stonnington, Boroondara and Bayside - the preeminent agency secured 52 per cent of sales above $7 million, with their nearest competitor at 20 per cent.

Securing more than 70 sales at the apex of Victoria’s market, these results showcase the distinct niche the agency has carved within the luxury real estate market. 

According to Kay & Burton Executive Director Alex Schiavo, turnkey properties remain in high demand, but there is also renewed interest in land and renovation projects as concerns about building costs and supply chain issues continue to ease.

“The top end of the market is incredibly strong, and in other segments, we are noticing more stability,” Mr Schiavo said.

Securing 59 per cent market share in sales above $7 million in Bayside, with their nearest competitor at 24 per cent, Mr Schiavo noted the area’s top-end properties, particularly in areas such as Brighton, are expected to continue to add vigour to the wider market. 

Meanwhile in Stonnington—where Kay & Burton holds 46 per cent market share followed next by an agency with a 27 per cent share - Toorak, South Yarra, Malvern East and Armadale were the strongest performers for top results. 

In Boroondara, Kay & Burton was involved in more than half of the sales above $7 million in FY24, ahead of the nearest agency at 21 per cent, with Canterbury, Hawthorn, Hawthorn East and Kew being hives of activity for luxury sales. 

On the Mornington Peninsula, despite new land taxes, a series of strong sales leading into and throughout winter set a positive tone for spring, according to Kay & Burton Executive Director Tom Barr Smith.

“Buyers certainly have a lot of choices on the Mornington Peninsula currently, but properties are still garnering strong results. Vendors just need to be patient to find that perfect buyer,” Mr Barr Smith said. “With continued positive talk about interest rates, we are expecting confidence to continue to rise, meaning spring is shaping up to have the typical seasonal buoyancy.”

In the northern Peninsula region, Kay & Burton secured 45 per cent of sales within the $2 million to $5 million range, with Flinders, Red Hill, Balnarring and Main Ridge garnering the most activity. 

The market has shown remarkable resilience, recovering swiftly from the downturn of early 2023, which was one of the sharpest and shortest in property market history. This positive trajectory is bolstered by the strong performance of the luxury market. 

Melbourne’s inclusion in Knight Frank’s 2024 Wealth Report as one of the world’s top 25 most in-demand markets, with a projected growth of 3 per cent in 2024, underscores solid market fundamentals and the return of foreign investors.

*All market share data obtained from realestate.com.au sold listings and Kay & Burton’s CRM.

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