The Hills Shire Property Market Update 1st Half of 2022

In Q4 2021, the Hills Shire Council recorded a median house price of $1,850,000, and a median unit price of $982,500. This represents annual (Q4 2020 – Q4 2021) median price growth of 48.0% for houses and 20.9% for units. Between Q4 2020 – Q4 2021 total sales slowed, down by -30.8% for houses (to 689 sales) whilst units remained the same at 262 sales. High demand for houses in the area has seen the average days to sell on the market drop by -37.5% (to 30 days) and median price skyrocket. The market is undersupplied, an opportune time for owners and developers.

Average vendor discounts between Q4 2020 and Q4 2021 have swung to a premium for both property types, to 1.5% for houses and 0.2% for units. The Hills Shire Council market have now shifted to favour vendors, where buyers must pay premiums above the initial listed price in order to secure a house or unit.

In December 2021, house rental yields in the Hills Shire Council were recorded at 2.5%. In the 12 months to Q4 2021, the median house rental price increased by 12.5% to reach $675 per week, while average days on the market declined by -8.0% (to 23 days). The Hills Shire offers greater house rental yields than neighbouring LGA Parramatta (2.0%) and the Sydney Metro average (2.2%). Combined with strong rental price growth and decreased days to let there is a strong rental market.

3 bedroom houses have provided investors with +7.8% rental growth annually, with a median rent of $550 per week.

Also in December 2021, The Hills Shire Council recorded a vacancy rate of 2.6%, on par with Sydney Metro (2.6%) and below that of Parramatta LGA (3.4%). Vacancy rates in the Hills Shire Council¥ remain below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and have been trending downward over the past 3 years. This confirms there is a healthy rental demand and investors can be confident of a conducive investment environment.