Wodonga Property Market Update 1st Half of 2023
In Q4 2022, Wodonga recorded a median house price of $528,000, and a median land price of $342,500. This represents annual (Q4 2021 – Q4 2022) median price growth of 7.8% for houses and 59.3% for land. That said median house price softened by -8.2% on a quarter-by-quarter basis (Q3 2022 – Q4 2022). This is a reflection of interest rate hikes, consumer uncertainty, and economic conditions. House sales decreased by -42.3% (to146 sales) in Q4 2021 – Q4 2022, confirming a change in market dynamics. There is still an undersupply, but new opportunities exist for buyers ready to enter the market.
Average vendor discounts between Q4 2021 and Q4 2022 have swung to a discount for both property types, of -1.7% for houses and -10.3% for land. Q4 2022 recorded the highest discount for both property types since 2021, confirming a change in market dynamics. The market condition in Wodonga have now shifted to favour buyers, where sellers are willing to negotiate below the initial listing price.
House rental yields in Wodonga was 4.4% in December 2022, significantly higher than Melbourne Metro (2.7%). This was paired with a 9.3% increase in median house rental price in the 12 months to Q4 2022 and a -11.6% decline in the number of houses rented. Further, average days on market to let declined by -5.3%. This suggests an undersupplied rental market, creating opportunities for investors looking for a more affordable option than Melbourne Metro.
4+ bedroom houses have provided investors with +8.7% rental growth annually, achieving a median rent of $500 per week.
Wodonga recorded a vacancy rate of 0.5% in December 2022, which is below Melbourne Metro’s 1.7% average. Vacancy rates in Wodonga have slightly increased in the past 3 months, potentially due to increasing interest rates and the financial viability of certain properties. That said vacancy rates have remained within the 0.5% for the past 24 months. This suggests a conducive and sustainable environment for investors, especially with the recent softening of median house prices.
