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.
![Blue Mountains Property Market Update 2nd Half 2024](/media/images/Blue_Mountains_NSW_-_AdobeStock_3.format-webp.width-800_FeTNbEJ.webp)
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.