Brighton Property Market Update 1st Half 2024
In Q4 2023, Brighton recorded a median house price of $625,000, and a median unit price of $440,000. This represents annual (Q4 2022 – Q4 2023) median price growth of 15.2% for houses and a softening of -15.4% for units. Sales fell during this time, by -24.1% for houses (to 44 sales) and by -43.8% for units (to 9 sales). This suggests a house undersupply, with prices going up and less sales. Thus, now is an ideal time for owners to capitalise on their investments. The unit market is now more affordable, which creates a window of opportunity for first home buyers. That said unit buyers must act fast, as there are only very few new stocks planned.
Average vendor discounts between Q4 2022 and Q4 2023 saws a significant shift. For houses it swung from premium to a discount of -4.3% for houses, the widest discount recorded in 18 months. Now is the time for buyers to enter the market, even if there is an increase in median house price. On the other hand, units have swung from a discount to a premium, of 2.5% in Q4 2023. Thus, despite a softening in price, buyers must offer above the first list price.
Over the past 12 months, house rental yields in Brighton increased marginally to sit at 4.6% in December 2023, higher than Hobart Metro (3.5%). This was paired with an increase in the number of properties rented across the same time, and a decrease in median unit and house rent. This creates a unique opportunity, as investors can still benefit from higher rental yields and renters can take advantage of a more affordable rental market.
4+ bedroom houses have provided investors with +3.2% rental growth annually, achieving a median rent of $580 per week.
Brighton recorded a vacancy rate of 0.4% in December 2023, below Hobart Metro’s 1.1% average. Vacancy rates in Brighton have slightly fluctuated in the past 12 months, due to investors entering/exiting the market because of cash rate hikes. That said Brighton's vacancy is significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, indicating there is a still a much quicker occupancy of rental properties in the area.
