Bayside Property Market Update 1st Half of 2024
In Q1 2024 Bayside recorded a median house price of $910,000 and a median unit price of $590,000. This represents annual (Q1 2023 – Q1 2024) growth of 11.3% for houses and 18.6% for units. During this time house sales decreased, by -2.9% (to 200 sales), and by -29.7% for units (to 26 sales). There is an undersupply for stock, creating a buffer against higher interest rates; especially for houses. This is good news for owners looking to sell. There is a slightly more affordable unit market in the past quarter, thus an opportunity for first home buyers.
Average vendor discounts between Q3 2023 and Q1 2024 have swung to a premium of 0.1% for houses and tightened to a smaller discount of -0.2% for units. Although there is a split market, with house buyers needing to offer a premium and unit buyers benefiting from a small discount, market conditions in Bayside are now more favourable for sellers compared to three quarters ago; due to stock undersupply.
House rental yields in Bayside was 4.4% as of March 2024, higher than the Redland LGA (4.0%) and Brisbane Metro (3.5%). This was paired with a 6.3% increase in median house rental price in the past 12 months, at $680 per week, and a -8.0% decrease (to 208 houses) in the number of housed rented. Average day on the market declined by -28.6%, to a historical low level of 15 days. The unit market shows the same trends, thus there is an undersupplied rental market in Bayside, which is good news to investors.
3- bedroom houses have provided investors with +5.5% rental growth annually, achieving a median rent of $580 per week.
Bayside recorded a vacancy rate of 0.8% in March 2024, on par with Redland LGA average (0.8%), but slightly below Brisbane Metro (1.0%). Vacancy rate decreased slightly in the past 12 months, indicating an even tighter rental market. Further, a 0.8% vacancy rate is well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This suggests quicker occupancy of rental properties, thus a conducive environment for investors, even with a higher entry price.
