Wodonga Property Market Update 2nd Half of 2023
In Q2 2023 Wodonga recorded a median house price of $559,000, an annual (Q2 2022 – Q2 2023) 3.6% growth. That said, on a quarterly basis (Q1 2023 – Q2 2023), median house price softened by -0.4%. There is market resilience, one that recorded growth in the face of cash rate hikes and is now stabilising. House sales declined annually, with Q2 2023 having the lowest number (143 sales). Market undersupply was the underpinning factor to price resilience. Median land price in Q2 2023 was $215,000; a softening of -6.4% annually. This provides a more affordable option for those wishing to build.
Average vendor discounts between Q2 2022 and Q2 2023 have swung from a premium to a discount for houses, of -3.4%. It has widened to a higher discount of -5.7% for units. Market conditions have shifted to favour buyers, as vendors are willing to accept below the first list price. That said Q2 2023 average vendor discount is like Q1 2023, thus the market is stabilising. There is a limited time for buyers seeking affordable options.
House rental yields in Wodonga was 4.0% in June 2023, higher than Melbourne Metro (2.9%). Wodonga saw a 10.3% median house rental price growth in the past 12 months to Q2 2023, sitting at $480 per week. This is alongside a 5.0% increase in the number of houses rented (to 210 houses). The same pattern can be seen in the unit market, with a median price growth of 9.4% and 10.4% growth in the number of units rented. This suggests a highly demanded rental market.
4+ bedroom units have provided investors with +14.6% rental growth annually, achieving a median rent of $550 per week.
Wodonga recorded a vacancy rate of 0.7% in June 2023, below Melbourne Metro’s 1.3% average. Vacancy rates in Wodonga have fluctuated in the past 12 months, however overall increasing in trend. This could be due to investors taking an advantage of the tight rental market. That said 0.7% is still incredibly low, thus creating a conducive and sustainable environment for investors, especially as median sale price has started to stabilise in the past quarter (Q1 2023 – Q2 2023).
