Bendigo Property Factsheet 1st Half of 2019
The median house price in Bendigo was $374,000 in Q4 2018, which represented annual (Q4 2017 – Q4 2018) median price growth of 6.9%. During this timeframe the number of houses sold declined by -24.3%, which suggests an undersupply of houses. On the other hand, the median unit price in Bendigo softened by -4.4% over the past 12 months to Q4 2018 to $258,000. During this time, the number of units sold declined by -35.0% which suggests that the market is saturated and that there is a strong preference towards houses.
Average vendor discount for houses and units were -5.2% and -7.3% respectively in Q4 2018, which suggests that buyers are able to secure their property for below the initial asking price. This suggests that now is the ideal time for first time home buyers to enter the market.
The Bendigo rental market continued to serve investors well, with median house rent increasing by 3.2% to $320 per week over the 12 months to Q4 2018 and median unit rent holding stable at $265 per week. Rental yields in Bendigo were recorded at 4.5% (house) and 5.5% (units) in December 2018, significantly higher than Melbourne Metro’s rental yields of 2.9% (house) and 3.9% (units). With Bendigo median property sale prices being much lower than Melbourne Metro, this confirms Bendigo as a much more affordable and conducive investment option for first time investors.
Bendigo plans to invest approximately $170.1M in 1st half of 2019, with 73.5% dedicated to commercial developments. A focus on the commercial sector is key for Bendigo as this will stimulate local economic and job growth, which will have a positive spill-over effect on the property market.