Bungendore Property Market Update 1st Half 2024
In Q4 2023, Bungendore recorded a median house price of $1,025,000, and a median vacant land price of $564,900. This represents annual (Q4 2022 – Q4 2023) price softening of -6.8% for houses and a minor price growth of 1.5% for units. Total houses sales declined during this time, by -33.3% (to 22 sales), however land sales significantly increased, to 19 sales. That said, on a quarterly (Q3 – Q4 2023) basis the median house price softened at a lower rate, of -2.4%, which suggest economic confidence is returning to the market. Currently the house market is more affordable, but with low supply available buyers must act fast.
Average vendor discounts between Q4 2022 and Q4 2023 have remained relatively stable for houses, widening slightly to a higher discount of -5.7%. On the other hand, it has swung from a premium to a discount for vacant land, to -2.2%. Market conditions in Bungendore continue to favour buyers, where vendors are willing to accept below the initial listing price. Now is the time for buyers to act.
House rental yields in Bungendore was 3.6% in December 2023, slightly higher compared to Canberra Metro (3.2%). This was paired with a median house rental price increase of 17.2% in the past 12 months to Q4 2023, at $785 per week; and a 13.0% increase in the number of houses rented (to 26 houses). This suggests a highly demanded rental market, which is beneficial for investors looking to widen their property portfolio.
4+ bedroom houses have provided investors with +2.6% rental growth annually, achieving a median rent of $800 per week.
Bungendore recorded a vacancy rate of 5.0% in December 2023, which is above Canberra Metro’s 2.13% average. Vacancy rates in Bungendore have seen sporadic changes over the past 12 months, mainly due to the small size of the rental market. That said vacancy rates in Bungendore¥ have recorded an average of 3.6% vacancy rates for all of 2023, which suggest a relatively balanced market between demand and supply. This is good news for investors, especially with a more affordable entry price in the past 12 months to Q4 2023.
