Bayside Property Market Update 1st Half of 2023
In Q1 2023, Bayside recorded a median house price of $800,000, and a median unit price of $500,000. This represents annual (Q1 2022 – Q1 2023) median price softening of -5.9% for houses and a 2.8% price growth for units. On a quarterly basis (Q4 2022 – Q1 2023) median house price has remained relatively stable, however median unit price softened by -9.1%. Sales declined in the past 12 months, with Q1 2023 recording the lowest amount (157 houses and 26 unit sales). Current cash rates and economic conditions have affected the Bayside market, with higher affordability and new opportunities for buyers.
Average house vendor discounts between Q1 2022 and Q1 2023 have rapidly swung to a discount, of -2.3%. This is a consistent pattern for the past 3 quarters (since Q3 2022), which suggests that house market conditions in Bayside have now shifted to favour buyers. Units swung back to a premium of 1.6% in Q1 2023, however this is not as high as late 2021/early 2022.
House rental yields in Bayside was 3.8% in March 2023, higher than Brisbane Metro (3.7%). Further, median house rental price increase by 10.7% (to $640 per week) in the past 12 months to Q1 2023 and the number of houses rented increased by 23.2% (to 239 houses). Average days to let have remained a low 20 days, the lowest recorded in the past 6 months. The unit rental market shows the same trend, confirming Bayside as a highly demanded market.
4+ bedroom houses have provided investors with +14.3% rental growth annually, achieving a median rent of $640 per week.
Bayside recorded a vacancy rate of 1.0% in March 2022, which is slightly above Brisbane Metro’s 0.9% average. Vacancy rates in Bayside have seen a slight uptick in the past 12 months, as investors capitalise on a tight rental market. That said it is still lower than the Real Estate Institute of Australia’s healthy benchmark of 3.0%. These key indicators create a conducive and sustainable environment for investors, especially with a more affordable property market in the past quarter.
