Rising buyer demand and limited supply are expected to  drive the market in two southeastern suburbs popular with families and first-home buyers.

Keysborough and Dingley Village are tipped to perform well in 2024 following a strong 2023.

Within a short drive to beaches, they are seen as family friendly with spacious blocks and easy access to amenities plus quality public and private schools.

Both suburbs had performed well in the past 12 months despite rises in interest rates and tight supply, according to Buxton Keysborough director Ozan Kanbur and Dingley Village director Michal Kojdo.

“The market in Keysborough has been strongest for new homes and turnkey properties, while the demand for older homes that need renovating has weakened,” Mr Kanbur said.

“Stock levels will be the biggest factor, as we have already seen strong buyer interest in our new listings in 2024.”

In 2023, there were an average five to six groups at each home inspection in Keysborough but this has jumped to 10 groups in the new year.

Families are interested in larger houses while first-home buyers have opted for townhouses. Some investors have also returned to the market.

In 2023, the agency sold the most expensive residential house in the suburb at 7 Goldstone Court for $2.236 million. Mr Kanbur also closed the sale of the next most expensive sale of $2.15 million for 5 Fernleaf Avenue.

While the median house price in Melbourne grew by 2 per cent in 2023, the southeast region recorded a strong 3.8 per cent rise, according to Domain data. 

Mr Kanbur expected the market to perform as well in 2024, and if interest rates fall, buyer demand will rise.

“The suburb is home to Haileybury College and Lighthouse Christian College,which are popular with family buyers,”he said.

Neighbouring Dingley Village, which is more established and also popular with families and upgraders, has one of the highest auction clearance rates in Melbourne, and Buxton is the market leader.

“This is an area of high demand with multiple buyers at auctions, and homes are rarely passed in,” Mr Kojdo said.

“Listings fell around 30 per cent in 2023 from a year earlier and sellers achieved great prices in 2021-22 with double-digit price growth.”

He expected home prices to remain stable in 2024 as supply increases and buyers have more choice.

“There are many buyers, both local and from outside the area, but there is limited supply of spacious houses here,” he said.

The agency also had the most expensive house sale in 2023 in the suburb with 5 Teraba Close, sold for $1.825 million prior to auction. 

Mr Kojdo described Dingley Village as a “hidden gem” with excellent primary schools and easy access to top secondary schools, quality shops and amenities.

“It is still seen as affordable by many buyers, and sellers will fetch strong prices with homes that are well presented and renovated,” he added.

“We had a strong winter market last year and expect good activity with more supply in 2024.”

Both Buxton offices are also active in nearby suburbs including Aspendale, Waterways, Noble Park and Springvale.