Bendigo Property Market Update 2nd Half 2024
Bendigo boasts a rich cultural heritage with stunning architecture and a thriving arts scene. The city's peaceful lifestyle and close-knit community make it a wonderful place to settle and raise a family.
Property Trends
In Q2 2024, Bendigo recorded a median house price of $560,000 and a median unit price of $437,750. This represents an annual (Q2 2023 – Q2 2024) price softening of -5.9% for houses and a growth of 4.5% for units. Comparing Q2 2023 and Q2 2024, total sales surged by 23.3% (to 307 sales in Q2 2024) for houses and by 30.2% (to 56 sales in Q2 2024) for units. Bendigo saw a return in buyer confidence, evidenced by high demand for both property types. With only a small amount of new ready-to-sell stock planned for the rest of 2024, the current dip in median house price is most likely temporary. Thus, buyers must act fast.
Project Development
Bendigo LGA will see approximately $316.4M of new projects commencing construction in the 2nd half of 2024. $32.9M residential projects will supply 12 units/apartments, 43 dwellings, and 422 lots to the market. This is still not enough to satisfy current demand, which will stimulate price growth – and thus a market recovery.
Rental Market & Growth
House rental yields in Bendigo were 4.7% as of July 2024, higher than Bendigo LGA (3.6%) and Melbourne Metro (3.1%). This was paired with a 4.7% increase in median house rental price in the past 12 months to Q2 2024, to $450 per week; and a -17.6% decrease in the number of houses rented (to 210 rentals in Q2 2024). The same pattern is evident for unit rentals. This confirms Bendigo as an undersupplied rental market for both types, which is beneficial to investors.
Vacancy Rates & Property Investment
Bendigo recorded a vacancy rate of 1.8% in July 2024, higher than Bendigo LGA (0.8%) and Melbourne Metro (1.5%). Vacancy rates in Bendigo slightly declined in the past 12 months, which suggests a tighter rental market. Further, a 1.8% vacancy rate is well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, which confirms a quicker occupancy of rental properties in Bendigo. This suggests a conducive environment for investors, especially with a slightly more affordable house property price in the past 12 months to Q2 2024.
