Sellers in many outer-east suburbs will reap price rewards this year as a limited supply of listings cannot meet buyer demand.

With four genuine offers for each sale in 2023, Barry Plant Rowville could have sold three times more properties if it had enough listings, managing director Brenton Wilson said.

The long-established agency in the city’s outer-east chalked up more than 200 sales last year. It commands a strong market share in suburbs such as Rowville, Lysterfield, Ferntree Gully, Knoxfield, Boronia and Bayswater.

“There is high demand in our market but there is a lack of sellers,” Mr Wilson said.

“We saw rising inspection numbers in 2023, and as it will be carried forward to this year, it should be a seller’s market.”

Mr Wilson noted that the supply shortfall had resulted in rising prices as buyers were confident, with inflation slowing and there was a pause in interest rate rises.

“Prices were generally stable last year and rose in the June and September quarters,” he said.

“This had been anticipated due to the high demand.”

He cited the sale of a milk bar with a three-bedroom residence at 3 Bernard Hamilton Way, Rowville, which sold for $2.1 million, as one of the top results in that suburb last year.

There was also strong interest at the top end of the market, with acreage properties in Lysterfield highly sought after.

The agency recently sold Lot 15, Brae Road, Lysterfield, for $2.6 million, after it attracted two competing offers.

The owner bought the 1.5ha property that features an eight-bedroom house from the agency in 2009 for $1.1 million.

“There is huge interest for beautiful lifestyle homes on four-five acres,” Mr Wilson said.

He expected more of the same in 2024 with new listings coming on early but still lagging behind demand.

“We have seen good attendance at the open inspections and any new supply will stimulate the market,” he said.

“Right now, the market favours sellers and it will be a year for strong prices unless supply increases.”

As for the rental market, Mr Wilson said the crisis would continue for some time unless there was state government intervention.

“Each week, I hear stories of how people who cannot rent are having to camp out, as rents rose by as much as $100 a week for some properties,” Mr Wilson said.

“Nine of 10 rental properties that are sold go to homebuyers and the rest to investors, and this makes the rental market very tight.”

He noted that most investors selling up were “mum and dad investors” impacted by rising costs and taxes. and who had to sell their investment properties.

The agency, which previously had 10-20 groups register for each rental property, now had 30 groups per listing.