Hurstville Property Market Update 1st Half of 2022

In Q4 2021, Hurstville recorded a median house price of $2,100,000, and a median unit price of $700,000. This represents annual (Q4 2020 – Q4 2021) median price growth of 27.3% for houses and 2.9% for units. Between Q4 2020 – Q4 2021 total sales increased by 15.2% for houses (to 38 sales) and slowed by -4.6% for units (to 83 sales). Now is an ideal time to sell stand alone dwellings, as price growth combined with an increase in sales suggest real returns in investment. The unit market is undersupplied, however price growth is much slower than houses, providing an opportunity for first home buyers.

Average vendor discounts between Q4 2020 and Q4 2021 have heavily swung to a premium of 11.0% for houses and tightened to -0.3% for units. Hurstville market conditions have shifted to favour sellers, particularly for houses, where buyers must pay well over the initial listing price to enter the market.

In December 2021, house rental yields in Hurstville (2220) were recorded at 2.3%. This may seem low, however in the past 12 months to Q4 2021 median house sale price growth, of 27.3%, have outstripped that of median house rental price growth (9.1%). That said median house rental price for Q4 2021 sits at $600per week and average days on the market have declined by -12.1% (to 29 days); thus indicating a resilient rental market.

3 bedroom houses have provided investors with +1.8% rental growth annually , with a median rent of $560 per week.

Also in December 2021, Hurstville (2220) recorded a vacancy rate of 4.1%, above that of Georges River LGA (2.8%) as well as Sydney Metro (2.6%). Vacancy rates in Hurstville (2220) have remained above the Real Estate Institute of Australia’s healthy benchmark of 3.0% since June 2019, however, have been declining to a more sustainable level since March 2021. With continual incoming unit stock and higher than average vacancy rates, investors in Hurstville (2220) should look to sign tenants to longer leases for security of cashflow.