Beverly Hills Property Update 2nd Half of 2020
In Q2 2020, Beverly Hills recorded a median house price of $1,217,500, and a median unit price of $756,500. This represents strong annual (Q2 2019 – Q2 2020) median price growth of 25.2% for houses and of 41.4% for units. Between Q2 2019 – Q2 2020 total sales slowed, by -28.3% for houses (to 33 sales) and by -53.8% for units (to 12 sales). Beverly Hills property market price growth has proven to be extremely resilient during COVID-19, and with few competing properties now is the time to transact in the market.
Average vendor discounts between Q2 2019 and Q2 2020 have swung to a buyer’s premium of 4.1% for houses and tightened to -6.6% for units. House market conditions in Beverly Hills have now shifted to favour vendors, as buyers are willing to offer above the initial listing price. Now is the time to sell.
Over the past 12 months, house rental yields in Beverly Hills have compressed to sit at 2.6% in June 2020. This suggests the house rental market is in a healthy position, particularly when combined with a -6.1% decrease in the average days on the rental market (to 31 days) in the 12 months to Q2 2020.
3 bedroom houses have provided investors with stable rental returns annually, achieving a median rent of $560 per week.
Beverly Hills recorded a vacancy rate of 2.3% in June 2020. This represents a steady declining rate since June 2019 and a sharp decline since December 2019, quite the opposite to vacancy rates expectations during COVID-19. Furthermore, vacancy rates in Beverly Hills is well below Sydney Metro’s 3.8% average. This confirms a healthy rental demand exists in Beverly Hills, and investors can be confident of quicker occupancy of investment properties.