Bayside Property Market Update 2nd Half of 2022
In Q3 2022, Bayside recorded a median house price of $833,000, and a median unit price of $510,000. This represents annual (Q3 2021 – Q3 2022) median price growth of 13.6% for houses and 11.1% for units. That said on a quarter-by-quarter basis (Q2 2022 – Q3 2022) median price growth softened, by -0.7% (houses) and -6.2% (units). This is a reflection of interest rate hikes translating into the market. Total sales decreased annually and quarterly, with Q3 2022 recording the lowest number of sales (184 and 29 for houses and units respectively). Opportunities exist for sellers and buyers in both markets.
Average vendor discounts between Q3 2021 and Q3 2022 have rapidly shifted for both property types, to discounts of -1.9% for houses and -0.6% for units. Market conditions in Bayside have now shifted to favour buyers, as vendors are willing to offer below the initial listing price. Now is the time to enter the market.
Bayside house rental yields were 3.9% in September 2022, slightly higher than Redland City LGA (3.8%) and the Brisbane Metro (3.6%). This was paired with a 12.7% increase in median house rental price in the 12 months to Q3 2022, even with a 2.9% in the number of houses rented. The same pattern is evident in the unit rental market, with a 13.6% growth in median price and 21.1% growth in the number of units rented. Overall, this represents a resilient rental market in Bayside.
3-bedroom houses have provided investors with +17.0% rental growth annually, achieving a median rent of $550 per week.
Bayside recorded a vacancy rate of 1.1% in September 2022, which is above Brisbane Metro’s 0.6% average. Vacancy rates in Bayside have increased over the past 12 months, however, is still lower compared to the previous 24 months and remain within the Real Estate Institute health benchmark of 3.0%. These key indicators create a conducive and sustainable environment for investors, particularly with the median house price downturn in the past quarter.
