Insights
Mentone News – 2024
November 8th 2024
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Winter 2024 Sales Review
Pandelis Plousi – Director
Despite Winter traditionally bringing a lull in sales and listings, this year we have seen higher stock levels and greater buyer activity than usual. National listings were up 1.3% compared to last year reflecting increased buyer and seller confidence, due in part, to interest rates stabilising. As we come into Spring, there is a growing sense of optimism in the local market, and if – as speculated, – the RBA move to drop rates late 2024 or early 2025, this may combine to create some upwards pressure on property prices.
Move-in-ready homes and properties with great street appeal are attracting strong interest and selling quickly. With ongoing concerns around the resilience of the building industry and rising costs in both materials and labour, homes that are not in need of major renovations continue to perform exceptionally well.
In Cheltenham, we’ve achieved impressive results with properties on McIvor Street and Freda Avenue all selling under the hammer after multiple bidders fought it out at auction.
Stock remains limited for four-bedroom family homes, especially second-tier properties. Those that provide families with access to transport, shops and quality schooling will always be in hot demand, while the number of young buyers on the hunt for their first home is swelling due to increasing rental costs.
Interest Rates, Inflation and Commercial
Paul Johnston – Director / Commercial
The Australian economy has softened through 2024 as higher interest rates and inflation adversely impact consumer and business confidence. Global economic growth is expected to remain subdued over the next few years as the effects of high inflation, restrictive macroeconomic policies, geopolitical tensions, and challenges in the Chinese economy weigh on the outlook.
The Australian economy has also slowed in response to the impact of global economic volatility. Investment activity in Melbourne’s office remains subdued in 2024, and on track for its lowest annual level of sales in 20 years. Transactional activity in Melbourne’s industrial remains modest compared to recent years. Having peaked in 2021, Sales across the Melbourne industrial is likely to fall to its lowest level since 2010. The lack of transactional activity has resulted in yields continue to soften as the disconnect between vendors and potential purchasers remains. More than $700 million transacted in the Melbourne retail property market over 2024 to date, well below average levels. July 29th 2024 | UPA, Urban Property Australia
The commercial and industrial sectors in Australia face strong headwinds. Government spending, inflation, high interest rates and higher taxes, such as the big increase in land taxes, have hit landlords hard, particularly in Victoria. Fortunately, in the Bayside suburbs we have seen resilient businesses continuing to soldier on, so vacancy rates remain low in most Bayside shopping strips. Tenants have seen a need to be offering incentives to attract new tenancies. Through in industrial settings, rents are now subdued as vacancies rise to settle from previous lows. It is ideal to keep an eye on the market, yet remain alert for long term opportunities as well. Many self managed super funds continue to acquire quality, long term assets.
We have recently sold two shops in Chelsea, 435 & 436 Nepean Chelsea. The total land size for both shops was 386m². These sold at a healthy yield of 5.3%. And of course, there was room for future development to build up a first floor residence(s) or office. Please call if you want more details on this sale or to discuss selling your commercial property.
Just listed off market is 599 & 599A Balcombe Road, Black Rock.
- Metres to Black Rock Beach.
- In the heart of cosmopolitan Black Rock.
- Rear access. Lots of public parking at rear.
- Total Land Area 197m²
This recently renovated two storey shop is an exciting freehold opportunity Zoned C1Z. There is ground floor retail shop, plus the previous upstairs residence with deck, has now been converted with permits to a therapy centre. This may suit residence, therapy or medical uses. Please call for more details.
Office of the Year
We are incredibly humbled to be named Hodges’ Best Office for 2024. Recognising the collective hard work and dedication of the entire team, this prestigious award reflects not only our strong sales and rental achievements but also our unwavering commitment to community causes and the fostering of strong local ties. Our consistent representation at Hodges events throughout the year further underscores our dedication to both excellence and community engagement, and we are extremely proud to be celebrated for our ongoing efforts.
Vanessa Downey – Outstanding contribution to the sales team
We are incredibly proud of Senior Property Consultant Vanessa Downey for being recognised at the recent Hodges Award Night for her outstanding contribution to sales.
A valued member of our team for over 12 years, Vanessa expressed her gratitude for the acknowledgment, stating, “I was surprised and humbled to be recognised. It’s nice to feel appreciated, I love being part of such a great team.”
Despite a challenging year, Vanessa remains optimistic about the spring season ahead. She notes, “Some years are definitely harder than others and this hasn’t been the easiest year in terms of sales and listing numbers, but you have to take the tough times with the good.”
Vanessa’s dedication, perseverance, and positive outlook continue to inspire her peers and colleagues. We couldn’t think of a more deserving recipient for this award.
Taya Davidson – Property Management Leadership Award
Taking out the Hodges Property Management Leadership Award for the second time, our very own Taya Davidson said she was extremely grateful for both the nomination and win.
“Winning this award is a testament to the importance of collaboration and innovation in our field. Throughout my career, I’ve strived to create meaningful connections, foster teamwork, and advocate for best practices that benefit both clients and the community. Real estate is about more than transactions; it’s about building relationships and making a positive impact.”
Congratulations Taya – we could not think of a more deserving winner!
Tiah Menelaou – Rising Star Award
Open to new employees who have shown immediate commitment and dedication along with the right team ethic, The Rising Star Award was most recently awarded to Tiah Menelaou – a valuable addition to the Mentone team.
Working alongside Andrew Plousi and Vanessa Downey, Tiah has proved to be a tenacious and hardworking team member whose attitude is the perfect blend of warm and welcoming and fiercely hungry for success.
Getting through her daily tasks with focus and attention to detail, Tiah has fitted straight into the office dynamic and enjoys the variety and challenge of talking to different people each day; striving to really understand their circumstances and property goals. Her hard work is beginning to pay off and she will no doubt start to see the rewards that come with such continued and commendable efforts.
Hodges Community Award
For the fourth consecutive year, the Mentone office has proudly been awarded the prestigious Hodges Community Award.
Our office has been recognised for its continued support of the non-profit mental health charity, Dancing with the Black Dog, and our involvement in four major annual events, including RUOK Day, NABA Day at Mentone Bowling Club, and sponsorship of the Women’s 1500m event at the Beachside Gift.
This year’s RUOK Day was a tremendous success, with our office giving away over 2,100 cups of coffee in collaboration with 17 local cafes – valued at more than $11,000 – a remarkable increase from the 600 cups donated at the event’s inception just four years ago.
Director Mark Pearman expressed that, while it is an honour to receive such an award, the real reward is being part of a cause that makes a meaningful difference in people’s lives.
HODGES
Mentone
44 Florence Street
Mentone 3194
03 9584 6500
450 Nepean Hwy
Chelsea 3196
03 9707 8800
Contact us any time for qualified Real Estate advice or market appraisals.
