Lismore Property Market Update 1st Half of 2024
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% (to 240 sales) for houses and 120.0% (to 33 sales) for units. 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, 5.7% for houses and 17.6% for units. This suggests the market is entering a recovery phase; thus, buyers must act fast.
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 Q2 2023 respectively). While market conditions in Lismore still favour buyers, as sellers are willing to accept prices below the initial listing prices, the trend is shifting towards a market recovery. Buyers need to act fast to access available discounts.
House rental yields in Lismore were 4.0% as of April 2024, higher than Lismore City LGA (3.3%) and Sydney Metro (2.9%). This was paired with a 9.1% increase in median house rental price 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 in 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.
Lismore recorded a vacancy rate of 0.8% in April 2024, below the Lismore City LGA’s and Sydney Metro’s 1.2%. Vacancy rates in Lismore decreased in 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.
