Buninyong Property Factsheet 2nd Half 2018
The Buninyong house market recorded a median price of $445,000 in Q3 2018, which represented a -5.3% change over the past 12 months. Vacant land recorded a similar median price change of -6.1% in the same period (Q3 2017-Q3 2018), with a median land price of $231,000. In comparison with the annual growth (for Q1 2017 – Q1 2018) of 19.2% for houses and 40.3% for land reported in the Buninyong 1st Half 2018 Research Factsheet, properties in Buninyong has recently become more affordable.
The median prices of rural properties in the suburb of Buninyong have experienced growth from 2017 to 2018, by 2.5% to $685,000 for rural residential sales and 9.5% to $282,500 for rural vacant land sales. These markets have produced fairly steady annual price growth and represent a premium market (in terms of median price) over the wider Buninyong area.
Median rental prices for houses have spiked in the 12 months to Q3 2018, with an annual increase of 27.0% to $400 per week. Rental yields in June 2018 for Buninyong were 3.6% for houses and 4.1% and for units, which presents an attractive investment option in comparison to Melbourne Metro’s yields of 2.7% (house) and 3.9% (units). Such levels of rental yield return in a market with softening median price sale and improved affordability makes Buninyong as an attractive investment alternative to Melbourne Metro.
Buninyong is set to invest approximately $18.6M in developments from 2016-2018, the majority of which (82.1%) is dedicated to commercial projects. This is followed by residential (10.2%) and infrastructure projects (7.7%). This balance is a key strategy for Buninyong as commercial projects will result in more economic activity, with positive spill-over effects into the property market in the future.