The Kensington real estate market has seen significant shifts over the past few years. From price surges to market slowdowns, property values in Kensington have evolved alongside national and local economic conditions. Understanding these trends is crucial for buyers, sellers, and investors aiming to make informed decisions in this dynamic environment.

In the past decade, Kensington has transformed from a quiet suburb into a sought-after residential hub. This transformation has directly impacted property prices, driven by factors such as increasing population, infrastructure developments, and the overall appeal of suburban living close to city amenities. Buyers have shown a growing preference for the balance Kensington offers—peaceful surroundings with convenient access to schools, parks, shops, and public transport.

How Did Property Prices in Kensington Respond to National Housing Trends?

Like most Australian suburbs, the Kensington real estate market has closely followed broader national housing trends. During the nationwide property boom between 2020 and 2022, Kensington saw a rapid rise in house prices. Low interest rates, government incentives, and a high demand for suburban homes post-pandemic all contributed to this increase.

As the Reserve Bank of Australia began raising interest rates in 2023 to curb inflation, the market in Kensington started to cool. However, Kensington’s property prices did not drop as sharply as in some other regions. The suburb’s solid reputation, quality schools, and consistent demand helped cushion the market against dramatic declines.

According to local property experts like Scott Wade, Kensington has shown remarkable resilience. While the growth rate slowed, property prices have largely stabilised rather than plummeted, making it an attractive long-term investment area.

Why Is Kensington Still a Strong Market for Buyers and Sellers?

Despite recent interest rate hikes, Kensington real estate continues to perform well. One reason is the suburb's limited housing supply. Kensington offers a blend of period homes, modern townhouses, and low-rise apartment complexes, but there simply aren’t enough properties to meet the ongoing demand. This scarcity keeps competition high among buyers, helping to maintain property values.

In addition, Kensington’s strong community atmosphere and green spaces attract families, young professionals, and retirees alike. Proximity to major employment hubs and easy transport options have kept this suburb on many buyers’ radars.

Real estate specialist Scott Wade emphasises that while price growth may be slower compared to the peak pandemic period, Kensington’s housing market remains robust. The area is particularly attractive to first-home buyers and investors looking for stable, long-term returns.

How Have Different Property Types Performed in Kensington?

It’s important to note that not all property types in the Kensington real estate market have performed equally. Detached houses, especially those with modern renovations or heritage features, have experienced steady price growth. Buyers value these homes for their larger land sizes, outdoor spaces, and long-term capital appreciation potential.

On the other hand, units and apartments have seen more modest growth. While demand exists, especially among young professionals and downsizers, price increases in this segment have not matched the gains seen in the house market. However, the rental demand for units in Kensington remains strong, providing solid rental yields for investors.

Townhouses sit somewhere in between, offering a desirable option for those wanting more space than an apartment but without the higher maintenance requirements of a standalone house. This segment has attracted a steady stream of buyers, particularly small families and retirees.

What Role Has Infrastructure Played in Shaping Kensington Real Estate Prices?

Infrastructure developments have significantly influenced the Kensington real estate landscape. Improvements in local amenities, upgrades to public transport, and enhancements to green spaces have all increased the suburb’s liveability and appeal.

The addition of new bike paths, the redevelopment of local parks, and the expansion of shopping precincts have made Kensington even more desirable. These factors support sustained demand, which in turn helps stabilise or gradually increase property prices.

Public transportation improvements, including faster train and bus connections to nearby employment hubs, have made Kensington especially attractive for daily commuters. As commuting convenience increases, so does buyer interest in the suburb.

How Have Rental Prices Changed in Kensington?

While property sales prices are crucial, rental trends also offer valuable insights into the Kensington real estate market. Over the past few years, rental demand in Kensington has surged, partly due to a national rental shortage and partly because of Kensington’s growing popularity.

Rental prices for both houses and units have increased steadily. Families, students, and professionals seek homes in Kensington for its proximity to educational institutions, city centres, and recreational facilities. This strong rental demand benefits investors looking to secure stable tenants and long-term rental income.

Even as interest rates have placed some pressure on purchasing power, the rental market has remained competitive, further highlighting the suburb’s enduring appeal.

What Should Buyers and Sellers Expect Moving Forward?

Looking ahead, the Kensington real estate market is likely to continue experiencing moderate growth. Experts forecast a more balanced market where property prices will not surge as rapidly as in the past but will maintain steady appreciation due to ongoing demand.

For buyers, this means opportunities to enter a stable and desirable market without the fear of sharp price drops. Careful selection and due diligence remain essential, especially when evaluating different property types and locations within Kensington.

For sellers, Kensington continues to offer strong resale potential, particularly for well-presented homes that meet buyer expectations in terms of modern features, energy efficiency, and proximity to amenities.

Scott Wade advises both buyers and sellers to stay informed about local market trends, interest rate movements, and changes in government policy that could influence affordability and demand.

Why Is Now a Strategic Time to Engage with Local Experts?

Navigating the Kensington real estate market can be complex, especially as price trends vary between property types and locations within the suburb. This is why working with experienced local agents and property experts like Scott Wade can be a game-changer.

Local professionals offer up-to-date market insights, tailored advice, and invaluable knowledge about micro-market conditions that broader reports may overlook. Whether you are a first-time buyer, seasoned investor, or homeowner considering selling, expert guidance can help you make smart, timely decisions.

In a market where prices are stabilising but competition remains healthy, having the right strategy and support is essential for success.