Ramsgate Beach Property Market Update 1st Half 2023
In Q1 2023, Ramsgate Beach recorded a median house price of $1,700,000, and a median unit price of $697,000. This represents annual (Q1 2022 – Q1 2023) softening of -23.4% for houses and -1.4% for units. On a quarterly basis (Q4 2022 – Q1 2023) median price has softened at a slower rate, of -13.7% (house) and -1.1% (units). Cash rate hikes did translate into the market, but consumer confidence has started to slowly return. Sales declined in the past 12 months, by -4.3% (houses) and -15.1% (units), thus an undersupply. For those looking for a more affordable market, time is of the essence.
Average house vendor discounts between Q1 2022 and Q1 2023 have returned to a higher premium of 6.1% (from 3.9%), after a brief period of lower premium in late mid-late 2022. Confidence has indeed returned in the house market. In contrast average unit’s vendor discount widened to a -3.5% (from -1.8%) in Q1 2023, creating an opportunity for first home buyers.
House rental yields in Ramsgate Beach was 4.0% in March 2023, much higher than Sydney Metro (2.9%). This was paired with a median house rental price increase of 30.8% (to $850 per week) in the past 12 months to Q1 2023 and a -14.5% decrease in the number of houses rented. The same pattern can be seen in the unit rental market, thus an undersupplied is evident. This creates strong fundamentals for investors, regardless of what type of property is purchased.
4+ bedroom houses have provided investors with +20.0% rental growth annually, with a median rent of $1,050 per week.
Ramsgate Beach recorded a vacancy rate of 0.9% in March 2023, which is on par with vacancy rates for Bayside LGA and slightly below Sydney Metro’s at 1.3%. Vacancy rates in Ramsgate Beach have steadily decreased in the past 12 months, currently at a historical low. This indicates quicker occupancy of rental properties. These key indicators create a conducive and sustainable environment for investors, even with property sale prices starting to normalise in the last quarter.
