Bendigo Property Market Update 2nd Half of 2023
In Q2 2023, Bendigo recorded a median house price of $595,000, and a median unit price of $420,000. This represents price stability in the past 12 months to Q2 2023 for houses and -4.8% softening units. That said, on a quarterly basis (Q1-Q2 2023) median house price grew by 8.2%. Cash rate hikes did impact the house market, but consumer confidence have returned. 263houses were sold in Q2 2023, which is a -15.2% decline in the past 12 months. This indicates an undersupply and further explains the price growth. Units have become more affordable, thus an opportunity for first home buyers.
Average vendor discounts between Q2 2022 and Q2 2023 have widened to higher discounts for both property types, of -6.7% (houses) and -5.3% (units). Market conditions in Bendigo have further shifted to favour buyers, as vendors are willing to accept below the initial listing price. Now is an opportune time for buyers.
House rental yields in Bendigo was3.6% in June2023, higher than Melbourne Metro (2.9%). This was paired with a 7.1% increase in median house rental price in the 12 months to Q2 2023, to $450 per week, alongside a 7.7%increase in the number of houses rented (350 rentals). The unit rental market is undersupplied, as median unit rental price grew by 9.1% in the past 12 months (to $360 per week) yet the number of units rented declined by -1.1%.
2bedroom houses have provided investors with +8.0% rental growth annually, achieving a median rent of $378 per week.
Bendigo recorded a vacancy rate of 1.6% in June2023, slightly above Melbourne Metro’s 1.3% average. Vacancy rates in Bendigo have slightly increased in the past 12 months, due to investors re-entering the market. However, the vacancy rate is still below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This suggests a conducive investment environment, especially as Bendigo offers a more affordable property price compared to Melbourne Metro.
