Upper Hunter Property Market Update 2nd Half 2024
The Upper Hunter in New South Wales offers a serene lifestyle surrounded by stunning landscapes and a strong sense of community. It's an ideal place for those seeking a peaceful environment with easy access to nature and outdoor activities.
Property Trends
In Q2 2024, Upper Hunter recorded a median house price of $530,000, and a median unit price of $398,000. This represents annual (Q2 2023 – Q2 2024) median price growth of 5.7% for houses and 28.6% for units. Total house sales decreased between Q2 2023 – Q2 2024, by -2.8% to 174 sales (in Q2 2024) and increased for units, by 41.7% (to 34 sales in Q2 2024). Whilst housing sales has declined, prices continued to rise, which suggests an undersupply of houses. Confidence has returned to the unit market, with units in high demand and prices climbing. Overall, this suggests that now is an ideal time for owners to capitalise on their investment.
Project Development
Upper Hunter will see approximately $753.1M of new projects commencing construction in the second half of 2024 with a major focus on infrastructure development. There are no residential projects planned in the 2nd Half 2024. With no new incoming ready-to-go housing stock planned, an undersupply is expected.
Rental Market & Growth
House rental yields in Upper Hunter was 3.8% in July 2024, higher than Hunter Region (3.6%) and Sydney Metro (2.8%). This was paired with a 3.9% median house rental price increase in the past 12 months to Q2 2024, currently at $530 per week. At the same time, the number of houses rented increased, by 11.4%, to 117 rentals in Q2 2024. The unit market shows the same pattern, indicating an overall highly demanded rental market. This is good news for investors looking for an affordable alternative to Sydney Metro.
Vacancy Rates & Property Investment
Upper Hunter recorded a vacancy rate of 0.6% in July 2024, well below Sydney Metro’s 1.7%. Vacancy rates in Upper Hunter have fluctuated over the past 12 months, due to investors entering/exiting the market with cash rate changes. That said, vacancy rates have declined sharply in the past 3 months, indicating a tighter market. Further, a 0.6% vacancy rate is well below the Real Estate Institute of Australia’s ‘Healthy’ Benchmark of 3.0%, indicating quicker occupancy of rental properties. This suggests a conducive environment for investors in Upper Hunter.
