Bendigo Property Market Update 2nd Half of 2022
In Q2 2022, Bendigo recorded a median house price of $606,000, and a median unit price of $433,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 14.9% for houses and 18.6% for units. Total sales decrease between Q2 2021 – Q2 2022, by -18.9% (to 253 sales) for houses and by -40.5% for units (to 50 sales). Current owners can benefit from real returns on capital investment, as median price growth has been fuelled by an imbalance in high demand and low stock. The Bendigo market is heavily undersupplied, which can provide a buffer in a rising cash rate environment.
Average vendor discounts between Q2 2021 and Q2 2022 have widened for both property types, to further discounts of -4.5% for houses and -2.3% for units. Market conditions in Bendigo have now shifted to favour buyers, as vendors are willing to accept below the initial listing price. This can counter-act the increase in property prices, thus an opportunity for buyers.
Over the past 12 months, house rental yields in Bendigo increased to sit at 3.9% in June 2022. This is at a higher rate than Melbourne Metro (2.5%) yet with a more affordable price of entry. Median house rental price grew slightly by 1.3% between Q2 2021-Q2 2022, paired with a 1.6% increase in the number of houses rented. Renters are willing to offer a higher price, despite availability of rental houses. This is an expected dynamic in the market, due to a decrease in property sales.
4+ bedroom houses have provided investors with +6.7% rental growth annually, achieving a median rent of $480 per week.
Bendigo recorded a vacancy rate of 1.5% in June 2022, generally on par with Melbourne Metro’s 1.7% average. Vacancy rates in Bendigo have held steady over the past 12 months, trending within the 1.5% band. This indicates quick occupancy and stability in rental demand. This suggests a conducive and sustainable environment for investors, despite the increase in median sale prices of property over the past 12 months.
