Bendigo Property Market Update 1st Half of 2024
In Q4 2023, Bendigo recorded a median house price of $570,000, and a median unit price of $430,000. This represents annual (Q4 2022 – Q4 2023) softening of -0.4% for houses but an increase of 2.0% for units. That said on a quarterly basis (Q3 2023 – Q4 2023), median price grew by 1.0% for houses and 1.2% for units. During this time, sales declined for houses, by -9.6% (to 263 sales), but increased for units, by 2.0% (to 50 sales). There is an undersupply of houses, which prompted buyers to pivot towards units – thus more competition in the unit market that resulted in higher prices. Now is an ideal time for owners to transact.
Average vendor discounts between Q4 2022 and Q4 2023 have remained stable at -6.5% for houses, however, have widened to -5.3% for units. Market conditions in Bendigo have further shirted to favour buyers, with sellers willing to accept below the initial listing price. A steady average vendor discount environment creates a stable platform for first home buyers to enter the market.
House rental yields in Bendigo was 3.7% as of December 2023, higher than Melbourne Metro's 3.0%. This was paired with a 3.5% increase in median house rental price in the past 12 month to Q4 2023, to $440 per week, and a 2.3% growth in the number of houses rented (to 243 rentals). The same pattern can be seen in the unit rental market, which confirms Bendigo as an attractive and more affordable investment option compared to Melbourne Metro.
2 and 3+ bedroom houses have provided investors with +8.6% and +7.3% rental growth annually, achieving a median rent of $380 and $440 per week respectively.
Bendigo recorded a vacancy rate of 1.2% in December 2023, below that of Bendigo LGA (1.8%) and Melbourne Metro (1.5%). Vacancy rates in Bendigo slightly declined in the past 12 months, which suggests an even tighter market and quicker occupancy of rental properties. Further, a 1.2% vacancy rate is lower than the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This creates a conducive environment for investors, especially with a slightly more affordable house property price in the past 12 months to Q4 2023.
