Mildura Property Market Update 1st Half of 2024
In Q1 2024, Mildura recorded a median house price of $468,500, and a median unit price of $312,500. This represents annual (Q1 2023 – Q1 2024) growth of 8.4% for houses and 2.5% for units. During this time house sales decreased, by -25.7% (to 127 sales), however, unit sales increased by 23.3% (to 37 sales). There is a high demand for both property types in the market, with houses currently undersupplied. This has created a buffer against higher interest rates, reflected in price growth for both property types. Without any new supply planned for construction, the likelihood of further price growth is high. Thus, now is an ideal time to transact.
Average vendor discounts between Q4 2023 and Q1 2024 have widened to -5.8% for houses and -7.4% for units. This marks the peak discount for units. Despite the peak for houses passing (Q4 2023), current discounts remain appealing. Market conditions in Mildura continue to favour for buyers, with sellers willing to accept below the initial listing price. Now is the time to enter the market.
House rental yields in Mildura was 5.0% as of March 2024, on par with Mildura LGA’s 5.1% but higher than Melbourne Metro’s 3.1%. This was paired with a 11.1% increase in median house rental price in the past 12 months, at $450 per week, and a -17.8% decrease (to 143 houses) in the number of housed rented. Average day on the market declined by -13.0%, to a historical low level of 20 days. This indicates an undersupply in the rental market. With a more affordable entry price than Melbourne Metro, Mildura is an ideal investment alternative for investors.
4+ bedroom houses have provided investors with +13.3% rental growth annually, achieving a median rent of $510 per week.
Mildura recorded a vacancy rate of 0.5% in March 2024, slightly above the Mildura LGA (0.4%) but well below Melbourne Metro (1.1%). Vacancy rates in Mildura declined significantly in the past 12 months, suggesting a tighter and competitive rental market. Further, a 0.5% vacancy rate is well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, indicating quicker rental occupancy in Mildura and high rental demand, which is conducive for investors.
