Lismore Property Market Update 1st Half of 2024
Lismore, located in the Northern Rivers region of New South Wales, offers a vibrant, culturally diverse community and is surrounded by stunning natural beauty. Its prime location provides easy access to beautiful beaches and a subtropical climate, making it an ideal place for those who love nature and a relaxed lifestyle.
Property Trends
In Q1 2024, Lismore recorded a median house price of $525,000, and a median unit price of $500,000. This is an annual (Q1 2023-Q1 2024) price softening of -12.5% for houses, but price growth of 3.0% for units. During this time, total sales increased by 34.1% for houses (to 240 sales), and by 120.0% for units (to 33 sales).
The market has regained confidence, with high demand for both property types. This provided a buffer to higher interest rates, evident in the latest quarterly (Q4 2023-Q1 2024) median price growth of 5.7% for houses and 17.6% for units.
This suggests the market is entering a recovery phase and buyers must act fast.
Average Vendor Discount
The average vendor discounts between Q1 2023 and Q1 2024 have tightened to -5.2% for houses and -3.0% for units. The peak discount periods have passed for both property types (in Q4 2022 and in Q2 2023, respectively).
Market Conditions
Market conditions in Lismore still favour buyers, as sellers are willing to accept prices below the initial listing prices. However, this trend is shifting towards a market recovery, meaning buyers need to act fast to access available discounts.
Rental Market & Growth
House rental yields in Lismore were 4.0% as of April 2024, which is higher than the Lismore City LGA (3.3%) and Sydney Metro (2.9%) markets. This was paired with a 9.1% increase in median house rental prices in the past 12 months to Q1 2024, at $600 per week. The number of houses rented declined by -28.6% (to 120 rentals) and the average days on the market decreased to a historical low of 23 days. The same pattern also can be seen in the unit market. Combined, this indicates a rental undersupply in Lismore, creating an opportunity for investors.
2-bedroom houses have provided investors with +6.8% rental growth annually, achieving a median rent of $470 per week.
Vacancy Rates & Property Investment
Lismore recorded a vacancy rate of 0.8% in April 2024, which was below the Lismore City LGA and Sydney Metro’s 1.2%. Vacancy rates in Lismore decreased over the last 12 months, indicating an even tighter rental market. Further, a 0.8% vacancy rate is significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, which suggests quicker occupancy of rental properties.
This confirms there is a conducive environment for investors in Lismore.
