Blue Mountains Property Market Update 2nd Half 2024
Blue Mountains, offers a relaxing atmosphere with clean air, spectacular flora, and a comfortable, temperate climate. Each town in the region is rich in history, culture, and community spirit, making the Blue Mountains an ideal place to call home.
Property Trends
In Q2 2024, Blue Mountains recorded a median house price of $907,500, and a median unit price of $715,000. This represents annual (Q2 2023 – Q2 2024) median price growth of 7.8% for houses and 10.8% for units. Comparing Q2 2023 vs Q2 2024 houses sales declined, by -2.5% (to 355 sales in Q2 2024), whilst unit sales increased, by 14.3% (to 24 sales in Q2 2024). There is a highly demanded unit market and an undersupplied house market, which has created a buffer against higher interest rates - thus price growth for both property types. Now is an ideal time for owners to capitalise on their investments.
Project Development
Blue Mountains will see approximately $18.9M of new projects commencing construction in the 2nd half of 2024. There is only one residential project planned in the 2nd half of 2024, the Stuarts Road Subdivision ($2.4M), due to add 48 lots to the market. With no new incoming ready-to-go supply planned, an undersupply is expected. This will continue to push up house and unit prices higher.
Rental Market & Growth
House rental yields in Springwood was 3.2% in June 2024, higher than the wider Blue Mountains LGA (2.9%) and Sydney (2.8%). This was paired with a 10.9% increase in median house rental price in the past 12 months to Q2 2024, at $610 per week, whilst the number of houses rented declined by -6.0% (at 891 houses). The unit rental market shows a similar pattern, which is good news for investors.
Vacancy Rates & Property Investment
Springwood (postcode 2777) recorded a vacancy rate of 0.4% in June 2024, well below Sydney Metro’s 1.7% average. Vacancy rates in Blue Mountains have fluctuated in the past 12 months, due to the level of investors opting in/out of the area, however, have declined as an overall. This suggests a tighter rental market. Further, a 0.4% vacancy rate is significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental properties. This is a conducive environment for investors.
