PRD Beverly Hills Property Market Update 1st Half 2023
In Q1 2023, Beverly Hills recorded a median house price of $1,277,000, and a median unit price of $712,000. This represents annual (Q1 2022 – Q1 2023) median price softening of -12.6% for houses and a growth of 10.4% for units. However, on a quarterly basis (Q4 2022 – Q1 2023) median house price grew by 0.4% and median unit price grew 23.8%. Thus, cash rate hikes did translate into the market, but consumer confidence have returned. Sales did decline for houses in the past 12 months, by -6.8%, thus indicating an undersupply. For those looking for a more affordable house market, time is of the essence.
Average vendor discounts between Q1 2022 and Q1 2023 have shifted to a lower premium of 1.9% (from 4.0%) for houses, while it has remained stable for units (-1.7%). House sellers can achieve a final price above the first list price again in Q1 2023, thus a potential return to pre-cash rate hike market conditions. Unit buyers can still access a discount, but time is limited.
House rental yields in Beverly Hills was 1.9% in March 2023, slightly below Sydney Metro (2.3%). However, this was paired with a 24.1% increase in median house rental price in the past 12 months to Q1 2023, and a 11.1% increase in the number of houses rented. Average days on the market declined by -20.0%, to 20 days – the lowest recorded in the past 18 months. This same pattern can be seen in the unit rental market, thus confirming a resilient and undersupplied rental market.
3+ bedroom houses have provided investors with +14.2% rental growth annually, achieving a median rent of $660 per week.
Beverly Hills recorded a vacancy rate of 0.7% in March 2023, significantly below Sydney Metro’s 1.3% average. Vacancy rates in Beverly Hills have declined for the past 24 months, sitting well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and currently at a historical low. This creates a conducive and sustainable environment for investors, even if median house price has started to normalise in the past quarter (Q4 2022 – Q1 2023).
