Albury Property Market Update 2nd Half of 2022
In Q2 2022, Albury recorded a median house price of $520,000, and a median vacant land price of $220,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 22.4% for houses and 37.5% for vacant land. Total sales decreased between Q2 2021 – Q2 2022, by -21.5% (to 263 sales) for houses and by -74.4% (to 30 sales) for vacant land. Strong demand has quickly absorbed new listings, thus creating an undersupplied market. Now is an ideal time for owners and down-sizers to capitalise on their investment. The imbalance in demand and supply can provide a buffer against cash rate hikes.
Average vendor discount between Q2 2021 and Q2 2022 is showing a two-speed market. For house, it has swung from a premium to a discount of -0.3%, which means sellers are willing to accept below the first price. For vacant land it has tightened to -1.8%, thus buyers must offer closer to the first list price. That said average vendor discount have fluctuated in the past 4 quarters.
Over the past 12 months, house rental yields in Albury softened to sit at 3.7% in June 2022. This is due to annual median house sale price growth of 22.4% outperforming annual median house rental price growth (14.1%). That said house rental yield in Albury is higher than Sydney Metro (2.5%) and the house rental market is undersupplied, with -2.1% less stock available. This presents a beneficial rental market for investors.
3 bedroom houses have provided investors with +12.3% rental growth annually, achieving a median rent of $410 per week.
Albury recorded a vacancy rate of 0.5% in June 2022, well below Sydney Metro’s 1.6% average. Vacancy rates in Albury have held steady, trending below 1.0% for almost 24 months and signifying a stable level of rental demand. Vacancy rates in Albury historically trend under the Real Estate Institute of Australia’s healthy benchmark of 3.0% and remained as such during COVID-19. This indicates a conducive environment for investors, despite the current increase in median sale prices.
