Wodonga Property Market Update 2nd Half of 2022
In Q2 2022, Wodonga recorded a median house price of $539,000, and a median vacant land price of $250,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 17.3% for houses and 47.1% for vacant land. Total sales decreased between Q2 2021 – Q2 2022, by -32.2% (to 181 sales) for houses and by -91.2% (to 8 sales) for vacant land. A median property price growth coupled with lower sales indicate 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 suggesting a higher benefit to vendors. House buyers are offering closer to the first list price, with the average vendor discount tightening to -0.1%. Vacant land buyers must offer higher than the first list price, as the average vendor discount have swung to a premium of 6.4%, the highest recorded in the past 6 quarters.
Over the past 12 months, house rental yields in Wodonga softened to sit at 3.8% in June 2022. This is due to median house rental price growth of 7.5% between Q2 2021-Q2 2022 being lower than median house sale price growth (17.3%). That said the house rental market remains undersupplied, with -32.2% less houses rented in the past 12 months and average days on the market declining by -5.6%. Overall, this presents a beneficial rental market for investors.
3 bedroom houses have provided investors with +10.8% rental growth annually, achieving a median rent of $410 per week.
Wodonga recorded a vacancy rate of 0.3% in June 2022, which is well below Melbourne Metro’s 1.7% average. Vacancy rates in Wodonga have held steady over the past 12 months and trended below 0.5% for almost 24 months. This suggests a high level of demand, at a stable pace. These key indicators create a conducive and sustainable environment for investors, despite the increase in median sale prices of property over the past 12 months.
