Beverly Hills Property Market Update 2nd Half of 2022
In Q3 2022, Beverly Hills recorded a median house price of $1,367,500, and a median unit price of $580,000. This represents annual (Q3 2021 – Q3 2022) median price softening of -1.1% for houses and -13.6% for units. Total sales slowed between Q3 2021 – Q3 2022, by -23.8% (to 48 sales) for houses and increased by 23.1% for units (to 32 sales). These trends suggest cash rate hikes is starting to translate into the market, with median house price growth starting to turn even in an undersupplied market. The unit market is now even more affordable. Opportunities exist for sellers and buyers in both markets.
Average vendor discounts between Q3 2021 and Q3 2022 have trended to a slightly higher premium of 2.3%, which favours vendors as it is above the first list asking price. Units on the other hand have widened to a larger discount for buyers, at -7.1% in Q3 2022. With more supply in the unit market, now is an ideal time to buy.
House rental yields in Beverly Hills was 2.4% in September 2022, slightly below Sydney Metro (2.6%). This was paired with a 18.2% increase in median house rental price in the past 12 months to Q3 2022, and a 3.8% (to 82 rentals) increase in the number of houses rented. This confirms there is a healthy level of rental demand in Beverly Hills.
3-bedroom houses have provided investors with +9.9% rental growth annually, achieving a median rent of $635 per week.
Beverly Hills recorded a vacancy rate of 1.2% in September 2022, which is slightly below Sydney Metro’s 1.3% average. Vacancy rates in Beverly Hills have been on a declining trend for the past 12 months, with the past 3 months recording historical low rates. This indicates a shift to a landlord’s market and quicker occupancy of rental properties. Vacancy rates in the area sit well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. These key indicators create a conducive and sustainable environment for investors, particularly with a median property price downturn in the past quarter.
