Western Melbourne prestige property volume decreases: HTW
Western Melbourne’s higher end property can be found right in the heart of its inner western suburbs such as Moonee Ponds, Essendon, Ascot Vale, Altona North, Yarraville and Williamstown, according to the Novemeber report from Herron Todd White
They found the housing market for high end property has seen a decrease in volume this year compared to 2019 with COVID being a major factor.
The majority of sales for prestige properties in this area occurred at the start of the year prior to the start of the pandemic and any form of restrictions being put in place. With a crippled economy and very uncertain times for many people, the demand or desire for lavish homes from both investors and owner-occupiers took a decline. This was combined with a limited number of buyers as no overseas investors were allowed into the country due to the heavy travel restrictions in place since March.
Supply for high end property has not been as prevalent this year as in the past however we may see more properties being listed in the coming months. One reason is that people cannot physically inspect properties at this point in time so sellers have held off placing their properties on the market until restrictions are lifted and potential buyers are allowed to physically inspect again in an attempt to achieve a higher sale price.
Another reason could be that if people are now finding that they can no longer afford to pay their mortgage due to the pandemic’s effect, there will be a flood of supply of higher end properties in an effort to avoid the bank taking the property as a mortgagee in possession. Overall there has been little change in value for this type of property as there has been no volume.
The market is dominated by owner-occupiers leaving very little rental spaces available. With no investors the market for high entry real estate has been devoured by homeowners. One sale that stands out in this area is 9 Forbes Street in Essendon (pictured) which sold for $3.61 million in June this year. The four-bedroom, three-bathroom, four-car garage house was originally built in the 1920s. Keeping its original facade, an extension took place in 2016. The house features a pool, large open living areas and American oak floorboards.
On the market for a price of $2.99 million is 5 Morton Street in Essendon. Among the fourbedroom, three-bathroom luxurious home’s features are an underground garage for six cars, large fitting room and master ensuite, indoor and outdoor entertaining area, home theatre, pool and elevator. The home was listed in August this year.