Melbourne suburbs smashing house price records after rate cuts
And with mega results north of $30m the sales are proving it's not just the city's mortgage belt that have been holding out for a rate cut.
Cashed up neighbours have swooped on at least two local landmarks, with title documents recently confirming the sale of a Brighton waterfront mansion understood to have topped the suburb's $31.6m record in the past month.
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Meanwhile, in one of Melbourne's most affordable suburbs, Frankston North's most expensive home is now a $900,500 four-bedroom house after Sydney-based investors pushed a local buyer to the unprecedented sum at an auction in April.
Renovations have also been a key factor driving home sales to new heights.
In the west, the couple behind an Albion home's extension that smashed the local record by $150,000 are hunting for another project with half an eye to besting the benchmark for neighbouring Deer Park or Ardeer.
Owners Emily and Dean sold their 33 Adelaide St, Albion, reno for $1.42m in late May, about 10 days after the year's second rate cut.
Emily said with expectations of another cut this week boosting borrowing capacity, and likely to lower mortgage costs, she would expect more records to tumble as home renos picked up — especially in Melbourne's west.
'And the west is a great, growing space and it has a lot of potential and has reached the cusp of change, with a lot of families wanting to live in this area,' she said.
The renovator added that resistance to paying record sums would also likely drop, especially for homes with exhaustive extensions and updates, as they were the most likely to tick enough boxes that buyers would see value in them — even at unprecedented prices.
'If it's a cheaper property for a cheaper price, that's great — but long-term, how much money will you tip into it to make it what you want? To buy something that's already finished will almost always be better value than doing it yourself — especially with building materials and trades and everything going up,' she said.
Real Estate Institute of Victoria interim chief executive Jacob Caine said a flurry of record breaking sales was 'surprising', as Melbourne was still waiting for a 'wholesale' surge off the back of rate cuts.
'However, there's always an opportunity for standout properties to attract incredible interest and record prices,' Mr Caine said.
'And I absolutely expect that we will start to see more and more suburb records tumble as anticipated rate cuts take effect.'
He added those hoping to get a record sale for their home might want to consider renovations, as there was still 'significant trepidation' around undertaking them in light of building industry difficulties that had made the few homes going the extra mile more appealing.
Melbourne's Rate Cut Record Setters
'Teychel', Brighton
Sold for $31.6m+ (July)
Broke prior record by unknown sum
Kay & Burton, Ross Savas
Sold for $7.1m, March
Broke old record by $2.95m
Whitefox Northside, Dylan Francis
160-162 The Avenue, Parkville
Sold for $7.9m+ (May)
Broke old record by $800,000+
Nelson Alexander, Nicholas West
161 Beach Rd, Parkdale
Sold for $5.35m (March)
Broke old record by $124,000
Buxton, Matthew Cox
10-11 Timbertop Court, Frankston North
Sold for $900,500 (April)
Broke old record by more than $100,000
OBrien Real Estate, Mark Burke
20 Mora Ave, Oakleigh
Sold for about $3.2m
Broke old record by about $100,000
Ray White, Daniel Seyran
73 St Vincent Place South, Albert Park
Sold for $15m+ (Off market)
Broke old record by $1.2m+
Marshall White, Ben Manolitsas
26 Nicholson St, Footscray
Sold for $2.665m (June)
Broke old record by $465,000
Hocking Stuart, Leo Dardha
33 Adelaide St, Albion
Sold $1.402m (May)
Broke old record by almost $150,000
Ray White, Marcus Fregonese
11A Sage St, Oakleigh East
Sold $1.603m (August)
Broke old Unit record by $133,000
OBrien Real Estate, Gareth Apswoude
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