Beverly Hills Property Market Update 1st Half of 2021
In Q1 2021, Beverly Hills recorded a median house price of $1,285,000, and a median unit price of $797,000. This represents annual (Q1 2020 – Q1 2021) median price growth of 14.7% for houses and 27.5% for units. Between Q1 2020 and Q1 2021 total sales increased, by 28.2% for houses (to 50 sales) and by 95.5% for units (to 43 sales). With median price growth occurring in conjunction with increased sales activity in both markets, there is real returns on capital investment in Beverly Hills. Now is the time to transact in Beverly Hills, particularly for sellers looking at benefiting from the market.
Average vendor discounts between Q1 2020 and Q1 2021 have further swung to a premium of 6.7% for houses and swung towards a discount of -2.4% for units. House market conditions continue to favour vendors overall, as buyers are willing to offer above the initial listing price. However there is now a discount for units, which is good news for first home buyers.
In March 2021, house rental yields in Beverly Hills were recorded at 2.1%. In the 12 months to Q1 2021, the median house rental price has softened by -12.6% to reach $520 per week, however average days on the market declined by -16.3% (to 28 days). Overall this suggests rental demand has remained relatively steady throughout COVID-19 in Beverly Hills.
3 bedroom houses have provided investors with the best rental return outcome, achieving a median rent of $555 per week.
Also in March 2021, Beverly Hills recorded a vacancy rate of 3.1%, below that of Canterbury-Bankstown LGA (4.0%) and Sydney Metro (3.3%). Vacancy rates in Beverly Hills remain slightly above the Real Estate Institute of Australia’s healthy benchmark of 3.0%, potentially due to COVID-19 conditions. This confirms there is still a fairly healthy rental demand in Beverly Hills, however investors may wish to sign tenants to longer leases for increased cashflow security.