As February unfolds, January's strong performance in the prestige market sets an optimistic tone, with activity surpassing last year's levels. Healthy stock supply is creating a balanced property landscape, signalling stability heading into the first half of the year - an encouraging sign for both buyers and sellers.
Interest rates could see a cut in early 2025 as inflation continues to ease. Annual core inflation fell to 3.2% in November, below the RBA’s forecast of 3.4% for December. Two of the big four banks are predicting a rate cut as early as this month.* If this happens, borrowing power may improve, boosting buyer confidence and market momentum.
The rental market is also shifting as net overseas migration slows. Following a peak of 556,000 in September 2023, migration numbers decreased to 446,000 by June 2024. Forecasts suggest this adjustment will continue, with levels expected to stabilise around 340,000 by mid-2025 as post-COVID patterns normalise and short-term residents return home.* This gradual easing of population pressure could lead to more moderate rental price growth in the months ahead.
Meanwhile, land tax policies continue to influence buyer and investor decisions on the Mornington Peninsula. Interest rates and tax changes are clearly affecting second home and investment purchases, and the luxury property market is adjusting as buyers rethink their strategies in response to these factors.
A strong start to the year indicates exciting opportunities ahead, whether buying, selling, or investing. With guidance from the experienced team at Marshall White, you can stay ahead of market trends and make confident, informed moves.
(*Source: CoreLogic)
