Upper Hunter Property Market Update 2nd Half 2023
In Q2 2023, Upper Hunter recorded a median house price of $515,000 and a median unit price of $312,500. This represents annual (Q2 2022 – Q2 2023) median price growth of 10.8%, while median unit price softened by -17.8%. Total sales declined between Q2 2022 – Q2 2023, by -21.8% (to 190 sales) for houses. This suggests properties are in high demand in the Upper Hunter and there is an undersupply for houses, as price growth is alongside lower sales volumes. The supply imbalance has created a buffer against higher interest rates, thus an opportune time for sellers to capitalise on their investment.
Average vendor discounts between Q2 2022 and Q2 2023 have widened to a larger discount of -3.2% for houses, while for units it swung from a premium to a discount -4.6%. Market conditions in Upper Hunter now favour buyers, with Q2 2023 recording some the highest average vendor discounts.
In June 2023, house rental yields in Upper Hunter were recorded at 4.3%, well above Sydney Metro (2.8%). In the past 12 months to Q2 2023 median house rental price increased by 8.5% (to $510 per week) whilst the number of houses rented remained stable (109 rentals). Average days on market also remained stable, at a low 20 days. Overall, this represents a resilient rental market in Upper Hunter, which has a more affordable investment entry price compared to Sydney Metro.
4+ bedroom houses have provided investors with +14.6% rental growth annually, achieving a median rent of $550 per week.
Upper Hunter recorded a vacancy rate of 1.4% in June 2023, slightly below Sydney Metro’s 1.7% average. Vacancy rates in Upper Hunter have increased steadily in the past 12 months, due to investors coming back into the market. However, it is still below the above the Real Estate Institute of Australia’s healthy 3.0% benchmark, thus quicker rental occupancy. These indicators suggest a conducive environment for investors, despite the increase in median sale prices in the past 12 months.
