Ballarat Property Market Update 2nd Half 2024
Ballarat, Victoria, offers a rich blend of history and modern amenities, with its stunning heritage architecture and vibrant arts scene. The city provides a welcoming community atmosphere, excellent schools, and easy access to beautiful natural landscapes, making it an ideal place to call home.
Property Trends
In Q2 2024, Ballarat recorded a median house price of $555,000, and a median unit price of $380,000. This represents a stable median house price between Q2 2023 – Q2 2024, whilst median unit price saw a -2.6% softening. Comparing Q2 2023 vs Q2 2024, total house sales increased by 9.6% (to 447 sales in Q2 2024) but unit sales declined by -17.8% (to 83 sales in Q2 2024). Although cash rate hikes initially affected the market, improved consumer confidence in the past 6 months has revitalised the house market; evident in a 2.8% increase in median house price in the past quarter (Q1 – Q2 2024). With very little new ready-to-sell stock planned, now is an ideal time for buyers to act.
Project Development
Ballarat LGA will see approximately $701.3M worth of new projects commencing in the 2nd half of 2024. A strong focus on infrastructure projects will improve liveability for residents and create local jobs during the construction phase. Although there is some new stock in the pipeline, of 21 townhouses and 14 dwellings in the 2nd half 2024, this is not enough to satisfy demand. Thus, a house price recovery is highly possible.
Rental Market & Growth
House rental yields in Ballarat was 3.7% as of June 2024, above both Ballarat LGA (3.2%) and Melbourne Metro (3.1%). This was due to a 5.0% increase in median house rental price in the past 12 months to Q2 2024, to $420 per week, and a -17.3% decrease in the number of houses rented (to 388 houses in Q2 2024). The unit market shows a similar pattern, which confirms there is an undersupply for both rental property types. With a more affordable entry price compared to Melbourne Metro, Ballarat is an alternative attractive investment option for first-time investors.
Vacancy Rates & Property Investment
Ballarat recorded a vacancy rate of 1.9% in June 2024, below the Ballarat LGA’s average 2.3%. Vacancy rates in Ballarat increased slightly in the past 12 months, due to more investors re-entering the rental market. However, a 1.9% vacancy rate is still well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental properties. This confirms there is still a conducive and sustainable environment for investors.
