Prices fell in Melbourne municipality of Boroondara in 2011, but well-priced properties found buyers: Jellis Craig

Prices in most suburbs in the Melbourne inner-east municipality of Boroondara fell during 2011, but Jellis Craig says vendors who were willing to meet the market found buyers.

Boroondara includes the pricey Melbourne suburbs of Ashburton, Hawthorn, Balwyn, Kew and Camberwell, and house prices fell between 3.4% in Camberwell and 22.9%in Balwyn during 2011. The only three suburbs in the municipality to record price increases were Kew(2.5%), Mont Albert (9.3%) and Surrey Hills (up 7.3%).

Source: Jellis Craig Annual Property Review

“Throughout 2011, the property market remained balanced, performing consistently across all price ranges,” Jellis Craig says in its Annual Property Review.

“Vendors who recognised these conditions and positioned their expectations accordingly, consistently achieved satisfying results. Properties with the potential to provide increased family accommodation, effective renovation opportunities or enticing rebuild possibilities were particularly attractive to the market.”

Jellis Craig says “flipping”, or renovating property in order to sell it quickly at a profit, is not feasible in the area given current market conditions.

Source: Jellis Craig Annual Property Review

“The long-held pursuit of immediate returns through quick, cosmetic updates is, for now, not an avenue we will be recommending and the expectation of double-digit market growth in the current economic climate is unrealistic,” it says.

“Embracing the medium- to long-term view is the most sensible and secure approach for purchasers to adopt in 2012 as we once again witness the strong demand for Boroondara real estate.”