Stonnington’s property market has entered a more stable phase, where sellers and buyers are increasingly aligned on price and expectations, according to Grant Samuel, Kay & Burton Director.
Director
“We have come off the back of a period where finance was hard to access and then extraordinary price growth during COVID-19. Now, the market has settled into a balanced state,” he said. “Vendors are understanding where the market is at now, rather than looking back at what occurred around 2021. While buyers remain selective, they are genuine and motivated, leading to strong results for well-positioned properties.”
While interest rates, house prices, and market cycles remain top of mind, the underlying forces shaping the market go beyond short-term fluctuations. A shortage of quality homes, shifting demographics, and Australia’s enduring lifestyle appeal continue to drive long-term demand, particularly in Victoria’s most desirable suburbs such as Toorak, Armadale, South Yarra and Malvern. Unlike regular market cycles, these structural shifts are creating lasting imbalances between supply and demand.
With clearance rates sitting around 70 per cent, and a fresh rate cut to open the selling season, Mr Samuel said momentum is building.
“A small rate cut will not drastically change conditions for high-end buyers, but it reinforces confidence in the direction of the market,” Mr Samuel said.
Buyer preferences remain firmly skewed towards turnkey properties, as rising construction costs have made large-scale renovations less appealing for many buyers.
“Buyers aren’t necessarily chasing brand-new homes with all the bells and whistles—they just want a move-in-ready, family friendly residence with four or five bedrooms, multiple living zones, and minimal work required,” Mr Samuel said.
This has driven strongest demand for turnkey homes priced between $3 million and $10 million, particularly in Toorak and South Yarra.
While market conditions have stabilised, the appetite for prestige homes remains as strong as ever. In 2024, Kay & Burton commanded a 39 per cent market share for sales above $7 million in Stonnington—more than any other agency—and an impressive 52 per cent share for properties exceeding $10 million*.
“Ultimately, buyers are feeling more positive, and vendors are motivated,” Mr Samuel said. “If a home is priced correctly, there is no shortage of interest.”
*Data sourced from realestate.com.au sold listings and Kay & Burton CRM