Investor Re-entry Sparks Heightened Competition Across Hawthorn Properties

Investor purchases in Hawthorn jumped 22 percent in the second quarter, with 47 contracts signed between April and June compared with 38 in the same period last year.

The shift follows three months of steady interest-rate stability and clearer signals on capital-gains treatment, prompting private investors to move back into established suburbs after sitting on the sidelines since late 2024. Local agents report that auction clearance rates have lifted from 68 percent in March to 81 percent last month, with investor bidders accounting for most of the increase.

Activity along Burwood Road and near Glenferrie Station

Properties within 400 metres of Glenferrie Station have seen the sharpest rise in competition, with three investor groups contesting a four-bedroom terrace on Liddiard Street last week. Further east along Burwood Road, a two-bedroom unit in the Hawthorn Grove complex attracted eight registered bidders, four of them first-time investors using interest-only loans. The Hawthorn Traders Association noted that foot traffic at weekend inspections has risen by roughly one-third since May, particularly at sites close to the Hawthorn Library and the Central Gardens playground.

Median prices for detached houses reached $1.65 million in the June quarter, up $85,000 from March figures released by the Hawthorn Property Council. Units averaged $712,000, with investor-financed sales making up 31 percent of the total, the highest share recorded since September 2023. Settlement data from the local branch of the Commonwealth Bank shows average deposit sizes for investor loans have climbed to 28 percent of purchase price, compared with 24 percent a year earlier.

Next steps for buyers and sellers

Agents advise vendors to prepare properties for immediate inspection rather than waiting for spring, while buyers should obtain pre-approval letters before shortlisting streets such as Mason Street or Kinkora Road. Those entering the market should also factor in potential body-corporate fee rises at newer townhouse developments near the Hawthorn Aquatic Centre, where levies increased 9 percent in the last financial year.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.