Ballarat Property Market Update 1st Half of 2024
In Q4 2023, Ballarat recorded a median house price of $555,000, and a median unit price of $385,000. This represents annual (Q4 2022 – Q4 2023) softening of -0.9% for houses and -4.9% for units. On a quarterly basis (Q3 2023 – Q4 2023), median house price softened at a lower rate, of -0.5%, while units saw a 6.6% growth. Cash rate hikes did impact the market, but consumers' confidence have returned; evident in both house and unit sales increasing in the past quarter to Q4 2023, by 4.8% and 11.2% respectively, and price conditions also improving. The house market still more affordable than 18-24months ago, but buyers must act fast.
Average vendor discounts between Q4 2022 and Q4 2023 have remained relatively stable for houses and slightly widened for units, at -7.0% for both. Market conditions in Ballarat continue to favour for buyers, with sellers willing to accept below the initial listing price. A steady average vendor discount environment creates a stable platform for first home buyers to enter the market.
House rental yields in Ballarat was 3.7% as of December 2023, on par with the LGA (3.7%). This was due to a 3.8% increase in median house rental price in the past 12 month to Q4 2023, to $410 per week, and a -10.8% decline in the number of houses rented (to 555 houses). The unit market shows a similar pattern, which confirms there is an undersupply in the rental market.
2- and 3-bedroom houses have provided investors with +10.0% and +11.5% rental growth annually, achieving a median rent of $605 and $725 per week respectively.
Ballarat recorded a vacancy rate of 1.2% in December 2023, below the Ballarat LGA (1.9%) and Melbourne Metro (1.5%). Vacancy rates declined in the past 12 months, potentially due to more investors entering the market and taking advantage of a tight rental market. A 1.2% vacancy rate is lower than the Real Estate Institute of Australia’s healthy benchmark of 3.0%, which suggests quicker rental occupancy and overall high rental demand. This creates a conducive environment for investors, especially with a slightly more affordable house and unit sales market in the past 12 months to Q4 2023.
