Ashmore Property Market Update 1st Half of 2023
In Q4 2022, Ashmore recorded a median house price of $895,000, and a median unit price of $455,000. This represents annual (Q4 2021 – Q4 2022) median price softening of -9.1% (houses) and -5.2% (units). On a six months basis (Q2 2022 – Q4 2022) median price softened by -11.4% for houses and by -13.5% (units). This can be attributed to cash rate hikes, lower consumer confidence, and economic conditions. Total sales figures have declined, with Q4 2022 recording the lowest number of sales, 46 for houses and 21 for units. There are now new opportunities for buyers ready to enter the market.
Average vendor discounts between Q4 2021 and Q4 2022 have swung to a discount of -5.1% for houses and lower premium of 1.2% for units. Market conditions in Ashmore have now shifted to favour buyers, as sellers are willing to negotiate below the initial listing price (house) or at a lower premium (units).
House rental yields in Ashmore was 4.7% in December 2022, higher than Gold Coast Main (3.9%) and Brisbane Metro (3.6%). This was paired with a 13.6% increase in median house rental price in the 12 months to Q4 2022 and a -34.7% decline in the number of houses rented. Average days to let remained a low 18 days. The same pattern can be seen in the unit rental market, which confirms Ashmore as an attractive more affordable investment option within the Gold Coast LGA.
4+ bedroom houses have provided investors with +16.4% rental growth annually, achieving a median rent of $850 per week.
Ashmore recorded a vacancy rate of 0.8% in December 2022, which is below Brisbane Metro’s 1.7% average. Vacancy rates in Ashmore saw a slight uptick in the past 3 months, potentially due to investors responding to higher interest rates. That said this is still within the vacancy rate-band recorded for the past 24 months, indicating rental demand stability overall. This suggests a conducive investment environment, especially with a decrease in median house price in the past 12 months
