Bendigo Property Market Update 1st Half of 2023
In Q4 2022, Bendigo recorded a median house price of $560,000, and a median unit price of $410,000. This represents annual (Q4 2021 – Q4 2022) median price softening of -3.4% for houses and -1.8% for units. On a quarterly basis (Q3 2022 – Q4 2022), median prices softened by -5.1% for houses and by -8.0% for units. This reflects interest rate hikes and consumer uncertainty translating in the market. Total sales figures have continued to decline, with Q4 2022 recording the lowest number of sales - 362 for houses and 30 for units. There are now new opportunities for buyers ready to enter the market.
Average vendor discounts between Q4 2021 and Q4 2022 have widened to higher discounts for both property types, of -6.0% for houses and -3.0% for units. Market conditions in Bendigo have further shifted to favour buyers, as vendors are willing to negotiate below the initial listing price. Now is the time to buy.
House rental yields in Bendigo was 3.9% in December 2022, higher than Melbourne Metro (2.7%). This was paired with a 10.0% increase in median house rental price in the 12 months to Q4 2022 and a -0.3% decrease in the number of houses rented. Average days on the market also declined, by -4.5% to 21 days. The same pattern can be seen in the unit rental market, which confirms Bendigo as an attractive more affordable investment option compared to Melbourne Metro.
3-bedroom houses have provided investors with +7.7% rental growth annually, achieving a median rent of $420 per week.
Bendigo recorded a vacancy rate of 1.7% in December 2022, which is on par with Melbourne Metro’s. Vacancy rates in Bendigo saw a slight spike in the late 2022, potentially due to investors responding to higher interest rates. However, it is still below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and pre-COVID-19 levels. This suggests a conducive investment environment, especially with a decrease in median house sale price in the past 12 months.
