As the 2025 real estate calendar gains momentum, enquiry levels for prestige properties in Boroondara have picked up, signalling a promising start to the year.
Licensed Estate Agent
“Off the back of strong sales in the late spring market, we’re seeing solid numbers at inspections, multiple parties competing at auction, and some compelling offers made prior,” said Sam Wilkinson of Kay & Burton Boroondara.
“Market conditions are looking increasingly positive for the first quarter, no doubt fuelled by the first rate cut in years. If we see consecutive rate reductions in a short timeframe, that’s likely to drive even greater activity.”
Recent CoreLogic modelling predicted that house prices in Boroondara could rise by 17.35 per cent following a 1 per cent rate cut—the fourth-highest increase forecast across Victoria—while Whitehorse West was projected to see the most rapid growth at 18.4 per cent. The modelling was based on historical rate-cut cycles from 2014–15, 2015–16, and 2018–19, examining how property values shifted after periods of stable rates followed by reductions.
Beyond the interest rate landscape, demand remains strongest at the upper end of the market.
“The most motivated buyers right now are already homeowners—many of whom had considered renovating but, given rising construction costs over the past few years, are instead looking for established, renovated, or newer homes they can move into immediately. They’re simply not willing to take on a two- to three-year build process,” Mr Wilkinson said.
This shift in buyer preference has placed quality, renovated period homes in Boroondara—particularly around Grace Park and the Sackville Ward precinct—at the top of the wish list.
Kay & Burton Boroondara rounded out 2024 with a 42 per cent share of sales above $7 million, with the nearest competitor at 25 per cent*. Of these 27 transactions, Kew saw the highest level of activity, followed closely by Hawthorn—further underscoring the demand for premium homes in the area*.
“There’s now serious competition in the $6 million to $10 million range,” Mr Wilkinson noted, adding that the Australian dollar’s position below US$0.65 is also driving renewed interest from offshore buyers.
“We’re seeing increased expat activity at the luxury end, likely due to favourable currency exchange rates. Whether they’re coming from Asia, Europe, or America, they’ve got more purchasing power right now.”
While momentum is building across Melbourne’s market after a slower 2024, land tax implications remain a key consideration for those holding multiple properties.
“The reality is that anyone with several luxury or larger properties—whether in Melbourne, the Mornington Peninsula, or regional Victoria—is reassessing the value of retaining them,” Mr Wilkinson said.
With interest rates easing, expat demand rising, and premium homes in high demand, Boroondara is set for a strong year ahead—particularly for those ready to capitalise on shifting market dynamics.
*Data sourced from realestate.com.au sold listings and Kay & Burton CRM
