Bayside Property Market Update 2nd Half of 2023
In Q3 2023, Bayside recorded a median house price of $827,500, and a median unit price of $620,000. This represents annual (Q3 2022 – Q3 2023) softening of -0.3% for houses and a 22.2% price growth for units. Quarterly (Q2 2022 – Q3 2023) median house price has softened further, by -0.9%, and median unit price grew at a slower rate, of 11.0%. Sales declined in the past 12 months, with Q3 2023 recording the lowest amount (190 houses and 37-unit sales). Current cash rates and economic conditions have affected the Bayside market, with higher affordability and new opportunities for buyers. In late 2022 average house vendor discount have swung from a premium of 0.4% to a discount of -2.3%. Since then, it has remained at a discount for the past 12 months. The same pattern can be seen in the unit market, thus property conditions in Bayside favour buyers. That said Q3 2023 recorded a tighter vendor discount than prior quarters, thus buyers looking for a discount must act fast. House rental yields in Bayside was 3.8% in September 2023, higher than Brisbane Metro (3.6%). Further, median house rental price increased by 4.8% (to $650 per week) in the past 12 months to Q3 2023 and the number of houses rented decreased by 7.1% (to 223 houses) – signifying an undersupply. Average days to let was 20 days, the lowest recorded in the past 6 months. The unit rental market shows the same trend, confirming Bayside as a highly demanded market. 2-bedroom houses have provided investors with +4.7% rental growth annually, achieving a median rent of $490 per week. Bayside recorded a vacancy rate of 1.1% in September 2023, slightly above Brisbane Metro’s 1.0% average. Vacancy rates in Bayside have seen a slight uptick in the past 12 months, as investors capitalise on a tight rental market. That said it is still lower than the Real Estate Institute of Australia’s healthy benchmark of 3.0%. These key indicators create a conducive and sustainable environment for investors, especially with a more affordable property market in the past quarter.
Key Findings
- In Q3 2023, Bayside recorded a median house price of $827,500, and a median unit price of $620,000. This represents annual (Q3 2022 – Q3 2023) softening of -0.3% for houses and a 22.2% price growth for units. Sales declined in the past 12 months, with Q3 2023 recording the lowest amount (190 houses and 37-unit sales). Current cash rates and economic conditions have affected the Bayside market, with higher affordability and new opportunities for buyers.
- 2-bedroom houses have provided investors with +4.7% rental growth annually, achieving a median rent of $490 per week. House rental yields in Bayside was 3.8% in September 2023, higher than Brisbane Metro (3.6%). Further, median house rental price increased by 4.8% (to $650 per week) in the past 12 months to Q3 2023.
- A total of $161.5M in project development is scheduled for the 2nd half of 2023, mainly focusing on the residential sector. Approximately 165 apartments, 340 lots, and 25 townhouses are planned, which will assist in addressing current demand.
- Vacancy rates in Bayside were a low 1.1% in September 2023. Vacancy rates in Bayside have seen a slight uptick in the past 12 months, as investors capitalise on a tight rental market. That said it is still lower than the Real Estate Institute of Australia’s healthy benchmark of 3.0%, thus conducive for investors.
- Property prices in Bayside are more affordable compared to Brisbane Metro, however with higher rental yields and lower vacancy rates. This makes Bayside an ideal place for investors looking for an alternative, more affordable, place to invest.
