Nagambie Property Market Update 2nd Half of 2023
In Q3 2023, Nagambie recorded a median house price of $470,000 and a median land price of $249,000. This is an annual (Q3 2022 – Q3 2023) -27.3% softening for houses and -7.9% for land. On a quarterly basis (Q4 2022 – Q1 2023) median house price softened by a slightly lower rate, of -23.6%. This is a reflection of cash rate hikes and low consumer confidence translating into the market. Total sales declined annually and quarterly, to 16 sales (houses) and 8 sales (land), thus an undersupply exists. With higher affordability for both houses and land, now is the time for buyers to act. Average vendor discounts between Q3 2022 and Q3 2023 have widened to a higher discount of -5.1% for houses and remained relatively stable at -5.1% for land. House and land market conditions in Nagambie continue to favour buyers, where vendors will have to discount below the initial listing price. House rental yields in Nagambie was 3.8% as of September 2023, on par with Northern Victoria (3.7%) and higher than Melbourne Metro (3.1) %. This was paired with a 9.2% median house rental price increase in the 12 months to Q3 2023 and a significant increase the number of houses rented (22 rentals). This suggests an undersupply in the house rental market and puts Nagambie as an ideal more affordable investment alternative to Melbourne Metro. 3-bedroom houses have provided investors with +15.8% rental growth annually, achieving a median rent of $440 per week. Nagambie recorded a vacancy rate of 2.7% in September 2023. Vacancy rates in Nagambie have rapidly increased over the past 3 months, as investors capitalise on the tight rental market. That said it is still below REIA’s ‘Healthy’ Benchmark of 3.0%, suggesting quicker rental occupancy. These key indicators create a conducive and sustainable environment for investors, especially given the current decrease in median property sale prices in the past 12 months and quarter.
Key Findings
- In Q3 2023, Nagambie recorded a median house price of $470,000 and a median land price of $249,000. This is an annual (Q3 2022 – Q3 2023) -27.3% softening for houses and -7.9% for land. On a quarterly basis (Q4 2022 – Q1 2023) median house price softened by a slightly lower rate, of -23.6%. This is a reflection of cash rate hikes and low consumer confidence translating into the market.
- Total sales declined annually and quarterly, to 16 sales (houses) and 8 sales (land), thus an undersupply exists. With higher affordability for both houses and land, now is the time for buyers to act.
- 3-bedroom houses have provided investors with +15.8% rental growth annually, achieving a median rent of $440 per week. House rental yields in Nagambie was 3.8% as of September 2023, on par with Northern Victoria (3.7%) and higher than Melbourne Metro (3.1) %.
- A total of $14.2M in project development is scheduled for the 2nd half of 2023, mainly focusing on the infrastructure sector. There is no new property stock planned. Current cash rate conditions allow for much of the existing stock to be absorbed, however this is not sustainable in the long run, given the level of
- Vacancy rates in Nagambie were 2.7% in September 2023, slightly under the REIA ‘Healthy Benchmark’. This suggests quicker rental occupancy.
- Property prices in Nagambie are more affordable compared to Northern Victoria and Melbourne Metro, however with comparable and/or higher rental yields and lower vacancy rates. This makes Nagambie an ideal place for investment.
