Hurstville Property Market Update 2nd Half of 2021

In Q2 2021, Hurstville recorded a median house price of $1,686,000, and a median unit price of $645,000. This represents annual (Q2 2020 – Q2 2021) median price growth of 2.2% for houses and a price softening of -11.9% for units. Between Q2 2020 – Q2 2021 total sales in both markets increased, by 188.2% for houses (to 49 sales) and by 39.7% for units (to 88 sales). This makes now an ideal to sell stand-alone dwellings, as price growth combined with an increase in sales suggest real returns in investment. The unit market is suggesting an oversupply, thus an opportunity for first home buyers.

Average vendor discounts between Q2 2020 and Q2 2021 have swung to a premium of 4.1% for houses and tightened to -2.3% for units. Market conditions in Hurstville is split, with houses selling at premiums favouring sellers, while units still favour buyers overall. This creates multiple opportunities for those wanting to transact in the market.

In June 2021, house rental yields in Hurstville were recorded at 2.4%. In the 12 months to Q2 2021, the median house rental price softened slightly (by -4.5%) to $525 per week, while average days on the market increased by 24.0% (to 31 days). This is reflective of COVID-19’s impact on the property market.

3-bedroom houses were the least impacted rentals for investors with -3.8% rental decline, and median rent of $550 per week.

Also in June 2021, Hurstville recorded a vacancy rate of 6.3%, above that of Georges River LGA (4.0%) and Sydney Metro (2.8%). Vacancy rates in Hurstville continue to sit above the Real Estate Institute of Australia’s healthy benchmark of 3.0%, largely due to COVID-19. The increase in vacancy rates over time is also attributed to the large number of new unit stock entering the market. Thus, unit investors in Hurstville may wish to sign tenants to longer leases for security of cashflow.