Ashmore Property Market Update 1st Half of 2024
In Q4 2023, Ashmore a median house price of $1,001,500, and a median unit price of $627,500. This represents annual (Q4 2022 – Q4 2023) growth of 13.2% for houses and 19.9% for units. On a quarterly basis (Q3 2023 – Q4 2023), median price grew by 8.0% (houses) and 8.9% (units). Total sales decreased by -8.6% for houses and by -33.3% for units in the past 12 months to Q4 2023. This suggests an undersupply, for both property types, which has created a buffer against multiple cash rates hikes and higher interest rates. This creates an ideal opportunity for owners who are looking to capitalise on their investment.
Average vendor discounts between Q4 2022 and Q4 2023 have tightened to a smaller discount of -1.5% for houses and remained at a premium of 0.7% for units. Although there seems to be a two-speed market, market conditions in Ashmore are now increasingly favourable for sellers, compared to a year ago. Due to an undersupply of stock buyers must either offer closer or above the first list price.
House rental yields in Ashmore was 4.3% as of December 2023, higher than the Gold Coast (4.0%). This was paired with a 6.3% increase in median house rental price in the past 12 months to Q4 2023, at $850 per week. The number of houses rented declined by -17.1% (to 121 sales), thus a rental undersupply. The same can be seen in the unit rental market. With a slightly more affordable entry price than the Gold Coast, Ashmore is ideal for investors.
2- and 3-bedroom houses have provided investors with +10.0% and +11.5% rental growth annually, achieving a median rent of $605 and $725 per week respectively.
Ashmore recorded a vacancy rate of 1.0% in December 2023, on par with the Gold Coast City LGA average. Vacancy rates in Ashmore increased in the first half of 2023, due to investors re-entering the rental market. However, it has declined in the last 6 months, due to more people being priced out of buying a property and opting to rent. Rental occupancy is now quicker, which suggests a conducive and sustainable environment for investors, despite the current increase in median sale prices of property in the past 6 and 12 months.
