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November 2024 Newsletter

HEY NEIGHBOUR!

As we wrap up another month, it’s hard to believe there are only six weeks left until Christmas! With the Melbourne Cup run and won, the festive season is galloping toward us.

In the Melbourne rental market, we’re seeing a slight cooling-off period. The steep rent increases that defined the past year are beginning to level out, and properties aren’t leasing as quickly as they were six months ago. However, as the end of the year approaches, demand is expected to pick up. Families looking to settle in top school zones, workers relocating for new opportunities, and students preparing for the academic year are all factors likely to sustain movement in the market.

With interest rates steadying, the sales market may take an interesting turn in the new year. Notably, we’ve observed an increase in renters breaking leases as they transition into homeownership—a reflection of high rental costs driving people to invest in their own properties.

In the apartment sector, a noteworthy development at the Vogue Apartments in South Yarra has caught attention. The Owners Corporation recently banned short-term stays under eight weeks, significantly impacting short-stay operators in the building. It remains to be seen how this change will influence rental rates as opportunities shift toward long-term leasing.

On a global note, the US Presidential election has come to a dramatic conclusion, with Trump reclaiming the White House. Whether this shift brings positive or negative outcomes for the world remains to be seen.

We close this month’s newsletter with a tribute to a remarkable figure in our community. Sadly, Helen Worladge, founder of Education Chances in Boroondara, has passed away. Helen’s legacy is one of dedication, compassion, and tireless advocacy for young, underprivileged students. She gave her time freely to everyone, helping countless students fulfill their dreams through her unwavering support and kindness. Helen has been an inspiration to many, including myself, and her absence leaves a deep void in the hearts of all who knew her. Her shoes will indeed be hard to fill.

Vale Helen. May her legacy continue to inspire and uplift.

If you’d like to discuss the current market or explore your options, feel free to reach out. As always, we hope you enjoy this month’s insights and articles. Have a fantastic weekend and a productive month ahead!

Warm regards,

Carmela

MARKET INSIGHTS
We strive to stay up to date on the latest market trends. Here are a few articles we think are worth reading.

• A single sentence penned by an anonymous person has cost a homeowner $500,000 and sparked furious debate (news.com.au)
  Key takeaways from the article
  1. Financial Impact of Heritage Listing: An anonymous heritage nomination led to a $500,000 financial loss for a Melbourne homeowner, preventing planned redevelopment and resulting in costly penalties.
  2. Transparency and Fairness Concerns: The council’s acceptance of anonymous heritage nominations without notifying property owners has sparked criticism for its lack of transparency, highlighting potential misuse and insufficient communication.
  3. Debate on Heritage vs. Property Rights: This incident has fuelled a broader discussion about balancing heritage preservation with property rights, prompting calls for revaluation of the heritage nomination process to ensure fairness for property owners.
• Victoria ‘desperately behind’ on affordable housing, data shows (news.com.au)
  Key takeaways from the article
  1. Housing Shortfall: Victoria is experiencing a substantial deficit in affordable housing, with current construction rates insufficient to meet the needs of low and middle-income earners.
  2. Government Initiatives: The state government has announced plans to build 800,000 new homes over the next decade to address the housing crisis. However, experts express concerns about the feasibility of this target, citing challenges such as a shortage of skilled construction workers and the need for innovative building methods.
  3. Economic Implications: The lack of affordable housing is contributing to increased living costs and financial strain for many Victorians, highlighting the urgency for effective solutions to the housing affordability issue.
• ‘Simply not enough’: Slow progress year on from landmark Victorian housing plan (news.com.au)
  Key takeaways from the article
  1. Slow Progress on Housing Goals: Despite Victoria's ambitious plan to build 800,000 new homes, progress has been limited, with only 1,600 additional social housing units built since 2017.
  2. Rising Demand for Social Housing: The social housing waiting list has expanded to over 51,000 households, reflecting increasing demand and an urgent need for affordable housing solutions.
  3. Economic Pressures on Vulnerable Populations: Rising rents and inadequate welfare payments are exacerbating financial strain on low-income Victorians, keeping many at risk of homelessness despite recent investments.
• Victorian government announces 50 higher-density housing development zones across Melbourne (abc.net.au)
  Key takeaways from the article
  1. Strategic Location of Activity Centres: The first 25 activity centres are primarily situated in Melbourne's south-east, along the Sandringham, Frankston, and Glen Waverley train lines. These zones are selected based on their proximity to public transport, jobs, and services, promoting transit-oriented development.
  2. Community Consultation Process: The government has initiated a consultation process to engage with residents in each suburb. This process is expected to be completed by the end of 2025, ensuring community input in the planning and development stages.
  3. Mixed Reactions from Stakeholders: While organizations like the Property Council of Australia and YIMBY Melbourne have welcomed the announcement, the Victorian opposition has criticized the lack of prior consultation with local communities. Additionally, some residents have expressed concerns about potential changes to the character of their neighborhoods.