Bexley North Property Market Update 1st Half 2023
In Q1 2023, Bexley North recorded a median house price of $1,485,000, and a median unit price of $670,000. This represents annual (Q1 2022 – Q1 2023) median price softening of -7.2% for houses and -10.1% for units. However, on a quarterly basis (Q4 2022 – Q1 2023) median house price softened at a lower rate, of -1.0%. Thus, whilst cash rate hikes did translate into the market, consumer confidence has started to return. House sales declined in the past 12 months, by -38.6% to 43 sales, indicating an undersupply. Time is of the essence for those looking for a more affordable house market.
Average vendor discounts between Q1 2022 and Q1 2023 have experienced a fluctuation, swinging from a premium to a discount and back again to a premium, at 6.7%. Units on the other hand have continued to swing to a discount, of -0.6% in Q1 2023. House sellers can now achieve a final price above the first list price, like 12 months ago. Thus, the house market has seen a return to pre-cash rate hike market conditions.
House rental yields in Bexley North was 3.2% in March 2023, higher than Sydney Metro (2.9%). This was paired with a 21.5% increase in median house rental price (to $790 per week) in the past 12 months to Q1 2023, while the number of houses rented declined by -6.7% (to 56 rentals). Average days on the market remained at a low 22 days. The same pattern can be seen in the unit rental market, thus confirming a resilient rental market in Bexley North.
3-bedroom houses have provided investors with +21.0% rental growth annually, achieving a median rent of $890 per week.
Bexley North recorded a vacancy rate of 0.9% in March 2023, which is below Sydney Metro’s 1.3% average. Vacancy rates in Bexley North have decreased slowly over the past 12 months, now at a historical low, indicating that rental demand for the area is very high. These key indicators create a conducive and sustainable environment for investors, even if consumer confidence is starting to return and median house prices have started to normalise in the past quarter (Q4 2022 – Q1 2023).
