Lismore Property Market Update 2nd Half 2024
Lismore in New South Wales is known for its vibrant arts and cultural scene, offering a unique blend of creativity and community spirit. The town's proximity to beautiful natural attractions like the beaches of Byron Bay and the lush hinterlands makes it perfect for nature lovers.
Property Trends
In Q3 2024, Lismore recorded a median house price of $575,000 and a median unit price of $450,000. This represents an annual (Q3 2023 - Q3 2024) price growth of 33.7% for houses and 6.6% for units, making it an opportune time for property owners to capitalise on their investments. Comparing Q3 2023 and Q3 2024, total sales declined by -33.4% for houses (to 209 sales in Q3 2024) and -9.1% for units (to 30 sales in Q3 2024). Overall, this confirms there is an undersupply for both property types, creating a buffer against higher interest rates. With very little stand-alone houses and units planned for construction in 2024, buyers need to act fast.
Project Development
Lismore is set to see approximately $29.8M of new projects commencing construction in 2024. Whilst there are some residential projects planned for 2024, the majority are land lots that will need time to develop into houses. The amount of ready-to-sell stock planned will not be enough to satisfy demand. Thus, the possibility of an undersupply is high, which can push up property prices.
Rental Market & Growth
House rental yields in Lismore were 4.4% as of September 2024, higher than Lismore City LGA (3.8%) and Sydney Metro (2.8%). This was paired with a 9.1% increase in median house rental price in the past 12 months to Q3 2024, at $600 per week. During this time, the number of houses rented declined by -33.1% (to 121 rentals in Q3 2024) and the average days on the market decreased to a historical low of 22 days. The same pattern is seen in the unit market. Overall, this indicates a rental undersupply in Lismore, which is good news for investors.
Vacancy Rates & Property Investment
Lismore recorded a vacancy rate of 0.7% in September 2024, below the Lismore City LGA’s 1.3% and Sydney Metro’s 1.6%. Vacancy rates in Lismore decreased in the last 12 months, indicating an even tighter rental market. Furthermore, a 0.7% vacancy rate is significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, which suggests quicker occupancy of rental properties in Lismore. This confirms there is a conducive environment for investors, even with an increase in property sale prices (and thus the entry price) in the past 12 months to Q3 2024.
