Beverly Hills Property Market Update 2nd Half 2023
In Q3 2023, Beverly Hills recorded a median house price of $1,427,500, and a median unit price of $600,000. This is annual (Q3 2022 – Q3 2023) growth of 5.2% for houses and 5.7% for units. Sales decreased between Q3 2022 – Q3 2023, by -2.0% (to 50 sales) for houses and remained stable for units (at 34 sales). Median house and unit prices did see a slight dip in 2022 and the Q1 2023, due to cash rate hikes and customer uncertainty. This has bounced back since mid-2023, with properties in high demand. Beverly Hills proves to be a resilient market, holding its value despite changing economic conditions.
Average vendor discounts between Q3 2022 and Q3 2023 have swung from a premium to a discount of -0.6% for houses, and in reverse from a discount to a premium of 2.4% for units. There are opportunities for buyers and sellers, depending on the property type. House buyers can benefit from a slight discount, but unit buyers must offer higher than the first list price.
House rental yields in Beverly Hills was 2.6% in September 2023, on par with Sydney Metro (2.7%). This was paired with a median house rental price increase of 20.4% (to $780 per week) in the past 12 months to Q3 2023 and a -14.8% decrease in the number of houses rented. The same pattern can be seen in the unit rental market; thus, a rental market undersupply is evident. This creates strong fundamentals for investors, regardless of what type of property is purchased.
2-bedroom houses have provided investors with +33.3% rental growth annually, achieving a median rent of $660 per week.
Beverly Hills recorded a vacancy rate of 1.1% in September 2023, which is below Sydney Metro’s 1.3% average. Vacancy rates in Beverly Hills have held relatively steady over the past 12 months, indicating stability in its rental demand. An uptick in vacancy rates in the past 3 months is due to investors coming back to the market, however a 1.1% vacancy rate is still low and signal quick occupancy of rental properties. These key indicators suggest a conducive environment for investors.
