Ashmore Property Market Update 1st Half of 2022

In Q4 2021, Ashmore recorded a median house price of $975,000, and a median unit price of $480,000. This represents annual (Q4 2020 – Q4 2021) median price growth of 42.8% for houses and 18.5% for units. Between Q4 2020 – Q4 2021 total sales in both markets slowed, by -19.2% for houses (to 80 sales) and by -32.9% for units (to 47 sales). The market is undersupplied, as median price growth is alongside lower number of sales. There is an imbalance in high demand and low supply levels, suggesting Ashmore needs ready-to-sell new stock – particularly houses and townhouses.

Average vendor discounts between Q4 2020 and Q4 2021 have swung to a premium for both property types, to 1.4% for houses and 4.9% for units. Ashmore have now shifted to favour sellers, where buyers are offering above the first list price.

In December 2021, house rental yields in Ashmore were recorded at 4.1%. House rental yield has declined in the past 12 months due to median house sale price growth, of 42.8%, outstripping median house rental price growth, of 16.3%. That said Q4 2021 median house rental price $698 per week and average days on the market declined by -5.3% (to 18 days).

This indicates a strong and resilient rental market.

3 bedroom houses have provided investors with +20.0% rental growth annually, with a median rent of $600 per week.

Also in December 2021, Ashmore recorded a vacancy rate of 0.7%, generally on par with Gold Coast LGA (0.6%) but below Brisbane Metro (1.3%). Vacancy rates in Ashmore have trended below 1.0% in the past 12 months and remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, even amidst COVID-19 conditions. This confirms there is still a healthy rental demand and investors can be confident of a conducive investment environment in Ashmore.