Ashmore Property Market Update 2nd Half of 2022
In Q2 2022, Ashmore recorded a median house price of $1,005,000, and a median unit price of $541,790. This represents annual (Q2 2021 – Q2 2022) median price growth of 40.0% for houses and 23.1% for units. Total sales decreased between Q2 2021 – Q2 2022, by -28.4% (to 58 sales) for houses and by -42.9% (to 36 sales) for units. An undersupply is evident in Ashmore, with a low sales count paired with high price growth. This creates opportunity for owners who are looking to capitalise on their investment. An imbalance in demand and supply can provide a buffer to increasing cash rates.
Average vendor discounts between Q2 2021 and Q2 2022 have shifted for both property types. It has swung to a discount of -1.7% for houses and to a premium of 5.3% for units. Market conditions in Ashmore suggest a split two speed market. House buyers can now benefit from a discount, whereas unit buyers must offer higher than the first list asking price.
Over the past 12 months, house rental yields in Ashmore softened to sit at 4.4% in June 2022. This is due to annual median house sale price growth, of 40.0%, outperforming annual median house rental price growth (23.1%). That said median house rental price was recorded at $800 per week in Q2 2022, and the number of houses rented increased by 27.1%. Average day on the market remained a low 19 days, thus confirming a highly demanded market,
3+ bedroom units have provided investors with +36.0% rental growth annually, achieving a median rent of $650 per week.
Ashmore recorded a vacancy rate of 1.2% in June 2022, which is slightly above Gold Coast and Brisbane Metro’s 0.6% average. Vacancy rates in Ashmore have held steady over the past 12 months and remained within the 1.5% band. This indicates high rental demand with stable rental cashflow. These key indicators suggest a conducive and sustainable environment for investors, despite the current increase in median sale prices of property in the past 12 months.
