Ashmore Property Market Update 2nd Half of 2023
In Q2 2023, Ashmore recorded a median house price of $900,000. This is an annual (Q2 2022 – Q2 2023) -10.9% softening, after a $1,010,500 peak at in Q2 2022. That said, on a quarterly basis (Q1 2023 – Q2 2023), median house price softened by a lower rate, -4.7%. Cash rate hikes did impact the market; however, confidence has returned, and some recovery is evident. House sales declined annually, with Q2 2023 recording the lowest at 43 sales. Median unit price was $580,000 in Q2 2023, which is a 10.3% and 6.8% growth annually and quarterly. Those looking for affordable house options must act quickly.
Average vendor discounts between Q2 2022 and Q2 2023 have rapidly widened to a higher discount of -3.7% for houses and swung to a lower premium of 0.3% for units. Market conditions in Ashmore* have shifted to favour buyers, as vendors are willing to accept below or closer to the first list price. That said Q2 2023 average vendor discount is like Q1 2023, suggesting the market is stabilising. There is a limited time for buyers seeking the most affordable option.
House rental yields in Ashmore was 4.7% in June 2023, higher than Gold Coast Main (3.8%). Ashmore saw a relatively stable median house rental price, sitting at $810 per week in Q2 2023; however, a 4.1% increase in the number of properties rented (76 houses). Median unit rental price increased by 0.9% in the past 12 months to Q2 2023, and like the house market Q2 2023 saw a 17.4% increase in the number of units rented. This suggests a highly demanded rental market.
1-bedroom units have provided investors with +17.9% rental growth annually, achieving a median rent of $460 per week.
Ashmore recorded a vacancy rate of 1.1% in June 2023, which is below Gold Coast Main’s 1.6% average. Vacancy rates in Ashmore have fluctuated in the past 12 months, however overall, an increasing in trend. This is potentially due to investors taking an advantage of the tight rental market. That said 1.1% is still quite low, thus creating a conducive and sustainable environment for investors, even if property price sales are starting to recover in the past quarter (Q1 2023 – Q2 2023)
