Liverpool Property Market Update 1st Half of 2023
In Q1 2023, Liverpool recorded a median house price of $949,500 and a median unit price of $500,000. This represents annual (Q1 2022 – Q1 2023) median price softening of -4.6% for houses and -3.4% for units. That said, on a quarterly basis (Q4 2022 – Q1 2023) median house price grew by 0.4% and median unit price grew by 0.8%. Thus, cash rate hikes did translate into the market, but consumer confidence have returned. In the past 12 months sales declined by -27.8% (house) and -27.2% (units), thus an undersupply is evident. For those looking for a more affordable market, time is of the essence.
Average vendor discounts between Q1 2022 and Q1 2023 have shifted for both property types, to higher discounts of -3.1% (from -0.4%) for houses and -5.9% (from -4.3%) for units. Market conditions in Liverpool continue to favour buyers, as vendors are willing to accept below the first list price. Now is the time to buy.
House rental yields in Liverpool were recorded at 3.0% in March 2023, relatively on par with Sydney Metro (2.9%). This was paired with a 12.1% increase in median house rental price in the past 12 months to Q1 2023, while the number of houses rented increased 18.7% (to 938 rentals). Average days on the market remained at a low 23 days. Overall, this represents a resilient rental market in Liverpool, as renters are willing to offer a higher price despite more houses being available to rent.
4+ bedroom houses have provided investors with +11.1% rental growth annually, achieving a median rent of $700 per week.
Liverpool recorded a low vacancy rate of 1.1% in March 2023, below Sydney Metro’s 1.3% average. Thus, properties are rented quicker in Liverpool. Further, vacancy rates in Liverpool have continued to decline in the past 12 months, indicating higher rental demand. These key indicators create a conducive and sustainable environment for investors, even if the house median price growth have started to normalise in the past quarter (Q4 2022 – Q1 2023).
