“For these types of buyers, it’s probably not about space, it’s not about that backyard, it’s actually about proximity to a particular location or living in a blue chip suburb – a tightly held suburb,” she said.
Harcourts agent Andrew Dimashki said Mount Waverley was one of the most prestigious suburbs in the leafy east, despite its 20 kilometres distance from the CBD, and those who lived there did not want to leave.
Cashed up downsizers were driving the demand and prices for units in Melbourne’s inner south and east.Credit: Peter Rae
“Downsizers want to get out of the empty nest and get into something modern, but they have their community here, they want to stay in the area, see their friends and go to local RSL up the road. ” Dimashki said.
He said many of the units in the suburb were actually townhouses, much larger than a typical apartment or villa and essentially “mini-mansions” – something older buyers in the area favoured.
“They get their ideal home, but they’re not spending $3 or $4 million,” he said. “As long as it’s got a bedroom on the ground floor, they will go for a townhouse.”
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He said they were often high-quality builds with extras, including butler’s pantries and multiple bathrooms, further adding to their price. Along with downsizers, they also attracted international buyers, he said.
“Buyers from Hong Kong and China want low-maintenance living, and they make that very clear to us,” he said.
A little further north in neighbouring suburbs Balwyn and Surrey Hills, young professionals were also active in the unit market, said David Ferro of Jellis Craig.
“They’re in their 30s, [have] no kids and have good incomes,” Ferro said. “They want to live in the ever-popular leafy east of Boroondara.
“But downsizers are still a big factor of the strong unit market. They don’t need the big house any more, but they don’t want to leave their suburb.”
Away from the tree-lined streets of the east, Toorak and Fitzroy in the inner city and Brighton and Hampton in the bayside suburbs made up the rest of the top ten.
Marshall White agent Ewan Bennett said Hampton had started to see families buying townhouses to save on cost-of-living pressures, including garden and home maintenance and energy costs. He said the Hampton was also a second choice for those priced out of nearby Brighton.
“There’s not the same ‘Brighton tax’ but it’s still an enviable area,” Bennett said. “There’s also a definite downsizer movement. They want apartments with lifts for accessibility, and if they’ve got cash to splash, they may even buy a penthouse.”
Powell said people tended to pay a premium to live in blue-chip areas, whether they were close to the city or had other features, which gave them prestige, whether that was ocean-front, access to amenities or quality schools.
“What it showcases is that some buyers are willing to pay more for a premium suburb or being in an inner-city location,” she said. “Land comes at a premium, and what units offer is a smaller space in these more premium locations.”