Bendigo Property Market Update 1st Half of 2022

In Q4 2021, Bendigo recorded a median house price of $572,000, and a median unit price of $408,000. This represents annual (Q4 2020 – Q4 2021) median price growth of 27.2% for houses and 12.7% for units. Between Q4 2020 – Q4 2021 total sales increased for houses, up by +10.2% (to 422 sales), but slowed for units by -21.0% (to 64 sales). Owner occupiers and down-sizers can benefit from real returns on capital investment, as median price growth has been fuelled by high demand. The unit market is currently undersupplied, creating ideal opportunities for unit developers.

Average vendor discounts between Q4 2020 and Q4 2021 have tightened for both property types, to -1.3% for houses and at 0.0% for units. Market conditions in Bendigo have shifted to favour vendors, with buyers needing to offer the first asking price or close to it.

In December 2021, house rental yields in Bendigo were recorded at 3.7%. In the 12 months to Q4 2021, the median house rental price increased by 8.1% to reach $400 per week, while average days to let on the market remained at 22 days. A strong increase in rental prices and a house rental yield generally on par with the Greater Bendigo LGA (3.9%) suggests Bendigo¥ remains a resilient rental market.

2 bedroom houses have provided investors with +13.8% rental growth annually, with a median rent of $330 per week.

Also in December 2021, Bendigo recorded a vacancy rate of 1.6%, slightly above that of Greater Bendigo LGA (0.8%) but well below that of Melbourne Metro (3.2%). Vacancy rates in Bendigo have trended around the 1.5% mark for the past 18 months and have remained well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This confirms there is still a healthy rental demand and investors can be confident of a conducive investment environment in Bendigo.