The Blue Mountains Property Market Update 1st Half 2023
In Q4 2022, Blue Mountains recorded a median house price of $876,500 and a median unit price of $640,000. This represents annual (Q4 2021 – Q4 2022) median price softening of -5.2% for houses median price growth of 6.7% for units. Total sales declined between Q4 2021 – Q4 2022, by -35.5% (to 323 sales) for houses, while total sales for units declined -4.2% over the 12-month period (to 23 sales). These trends suggest cash rate hikes have translated into the market, as median price downturn is evident alongside an undersupplied house and unit market. New opportunities now exist for buyers.
Average vendor discounts between Q4 2021 and Q4 2022 have widened to a larger discount of -6.3% for houses and -4.7% for units. Market conditions remain in favour of buyers, as vendors are willing to accept below the first list price. The past 6 months saw the highest vendor discount recorded, in good news to buyers.
House rental yields in Postcode 2777 was 3.1% in December 2022, slightly higher than Sydney Metro (2.7%). In the 12 months to Q4 2022 median house rental price increased by 1.9% to sit at $550 per week, alongside a 30.7% increase (to 294 rentals) in the number of houses rented. Average days on the market remained low at 25 days for Q4 2022, indicating a strong rental market in Postcode 2777.
3-bedroom houses have provided investors with 8.9% rental growth annually, achieving a median rent of $550 per week.
Postcode 2777 recorded a vacancy rate of 1.5% in December 2022, slightly below Sydney Metro’s 1.8% average. The spike in late 2022 can be attributed to more investors capitalising on a tight rental market. Vacancy rates in Postcode 2777 have trended relatively steady over the past 12 months and under the Real Estate institute of Australia’s healthy benchmark of 3.0%. Thus, a conducive and sustainable environment for investors, especially with lower median property sale prices.
