Upper Hunter Property Market Update 1st Half 2024
In Q4 2023, Upper Hunter recorded a median house price of $523,000, and a median unit price of $420,000. This represents annual (Q4 2022 – Q4 2023) growth of 6.2% for houses and 23.5% for units. During this time (Q4 2022 – Q4 2023) total sales declined for houses, by -16.2% (to 160 sales), but remained stable for units (at 26 sales). This suggests an undersupply for houses, and high demand for units, creating a buffer against higher cash rates. Houses suggest real returns on investment, making now a good time for owners to transact. With very little new stock planned, buyers must act fast before further price growth occurs.
Average vendor discounts between Q4 2022 and Q4 2023 have remained at a discount, widening slightly to -3.0% for houses, and -1.7% for units. Market conditions in Upper Hunter continue to favour buyers as vendors are willing to accept below the first list price. This creates a unique market, wherein sellers can gain from the current price growth, but buyers can also benefit from a discount.
House rental yields in Upper Hunter was 4.2% in December 2023, higher than Sydney Metro average of 2.8%. This was paired with a median rental house price increase of 12.8% in the past 12 months to Q4 2023, and a 30.9% increase in the number of houses rented (to 144 houses). A similar pattern is evident for units, indicating a highly demanded rental market.
4+ bedroom houses have provided investors with +14.3% rental growth annually, achieving a median rent of $560 per week.
Upper Hunter recorded a vacancy rate of 1.5% in December 2023, which is slightly below Sydney Metro’s 1.7% average. Vacancy rates in Upper Hunter have fluctuated in the past 12 months, due to investors entering and exiting the market in accordance with higher cash rate movements. However, vacancy rates of 1.5% is still below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, suggesting there is quicker rental occupancy in the Upper Hunter market. With a tight rental market, there is still conducive and sustainable environment for investors, even with higher property sale prices in the past 12 months.
