Bungendore Property Market Update 1st Half 2023
In Q4 2022, Bungendore recorded a median house price of $1,110,000 and a median land price of $556,000. This is an annual (Q4 2021 – Q4 2022) growth of 14.4% for houses and 30.8% for land. On a quarter-by-quarter basis (Q3 2022 – Q4 2022) median price grew by 13.3% (house) and 24.9% (land). This contrasts with other regions in Canberra, New South Wales, and Sydney. Sales declined between Q4 2021 – Q4 2022, by -8.6% (house) and -33.3% (land). The market is heavily undersupplied, creating a buffer against cash rate hikes. Now is an ideal time for owners to capitalise on their investments.
Average vendor discounts between Q4 2021 and Q4 2022 have swung from a premium of 3.1% to a discount of -4.5%. That said this is a tighter discount compared to Q3 2022 (-6.2%). This creates a unique opportunity for both buyers and sellers.
In December 2022, house rental yields in Bungendore were recorded at 3.2%. In the 12 months to Q4 2022, median house rental price declined by -9.6% to sit at $610 per week. In this time the number of houses rented increased by 4.5% and average days to let increased to 33 days. Despite median house rental price declining over the year, there is a strong demand for rental properties in Bungendore.
3-bedroom houses have provided investors with +15.5% rental growth annually, achieving a median rent of $615 per week.
Bungendore recorded a vacancy rate of 5.2% in December 2022. The sudden spike can be attributed to interest rate hikes, with investors potentially selling due to financial viability. Further, the increase in vacancy rates is a common trend across all capital cities – particularly Canberra, Sydney, and Melbourne. Traditionally vacancy rates in Bungendore have sat within the Real Estate of Institute of Australia’s healthy benchmark of 3.0%, creating a conducive environment for investment.
