Ballarat Property Market Update 2nd Half 2023
Ballarat offers a perfect blend of rich history, stunning architecture, and modern amenities, creating a vibrant community atmosphere. Its affordable housing, excellent schools, and proximity to nature make it an ideal place for families and professionals alike.
Property Trends
In Q2 2023, Ballarat recorded a median house price of $555,000 and a median unit price of $400,000. This represents annual (Q2 2022 – Q2 2023) softening of -7.5% for houses and growth of 2.6% for units. That said on a quarterly (Q1 2023 – Q2 2023) basis median house prices softened by a lower rate, -2.5%. Thus, cash rate hikes did impact the house market, but consumer confidence has started to return. 389 houses were sold in Q2 2023, which is a -11.2% decline in the past 12 months and explains the slower price decline. Thus, buyers looking for a more affordable house market need to act fast.
Project Development
There have been higher discounts for both houses and units, of -6.9% and -5.4% respectively. Market conditions in Ballarat have now shifted to favour buyers, as vendors are willing to accept below the initial listing price. This creates new opportunities for buyers.
Rental Market & Growth
Rental yields in Ballarat was 3.5% in June 2023, higher than Melbourne Metro (2.9%). This was paired with a 2.6% increase in median house rental price in the 12 months to Q2 2022, and stable demand for rental properties. Average days on the market remained at a low 27 (days) during this time, which suggests a resilient market. The unit market shows a highly demanded market, as median unit rental price increased by 6.3% whilst the number of units rented also increased by 10.2%. 1 bedroom units have provided investors with +18.2% rental growth annually, achieving a median rent of $340 per week.
Vacancy Rates & Property Investment
Ballarat recorded a vacancy rate of 1.6% in June 2023, which is slightly above Melbourne Metro’s 1.3% average. Vacancy rates in Ballarat saw a slight spike in late 2022, potentially due to investors returning to market following a tight rental in early-mid 2022. However, the vacancy rate is still below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This suggests a conducive investment environment, especially with a more affordable property price in the past 12 months.
