Bungendore Property Market Update 2nd Half 2025
Bungendore is a charming town located in southwest New South Wales, about 30 kilometres east of Canberra, Australian Capital Territory. It is known for picturesque streets lined with historic homes and offers a blend of country charm and modern amenities. With rural surroundings but only a short drive to the nation’s capital, Bungendore is an ideal family location.
Property Trends
In Q2 2025, Bungendore recorded a median house price of $1,100,000 and a median unit price of $565,000. This represents annual (Q2 2024 – Q2 2025) price growth of 13.7% for houses and 10.8% for units. Comparing Q2 2024 and Q2 2025, total sales declined by -22.2% (to 21 sales in Q2 2025) for houses and -20.0% (to 4 sales in Q2 2025) for units. This confirms an undersupply in the Bungendore market, which along with recent interest rate cuts has caused price growth. Thus, now is an ideal time for owners to capitalise on their investments. With very little ready-to-go residential stock planned for 2025, buyers must act fast.
Project Development
Bungendore will see approx. $309.7M of new projects commencing from 2022–2027. The largest development is The General John Baker Headquarters Operations Command Facility. With only a limited number of ready-to-go stock (14 units, 6 dwellings and 260 lots) planned, the undersupply in the market is expected to continue pushing prices up further.
Rental Market & Growth
House rental yields in Bungendore were 3.3% as of June 2025, which is slightly below the Queanbeyan-Palerang LGA (3.6%) and the Canberra Metro (3.5%). Median house rental price increased by 4.3% in the past 12 months to Q2 2025, at $730 per week and the number of houses rented decreased by -28.6% (to 15 houses in Q2 2025). This suggests a significant undersupply in the house rental market, which is beneficial for investors, even if the median house sale price (thus entry price) has increased in the past 12 months.
Vacancy Rates & Property Investment
Bungendore recorded a vacancy rate of 2.3% in June 2025, well above the Queanbeyan-Palerang LGA average of 1.1% and Canberra Metro’s 1.5%. Vacancy rates have fluctuated in the past 12 months, but overall showed a declining pattern, which indicates an even tighter rental market. Furthermore, a 2.3% vacancy rate is still below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy rates of rental homes in Bungendore.
