Hunter Valley Property Market Update 2nd Half 2023
In Q2 2023, Hunter Valley* recorded a median house price of $703,000, and a median unit price of $525,000. This represents annual (Q2 2022 – Q1 2023) median price growth of 1.2% for houses and 15.0% for units. Hunter Valley* saw continuous price growth in the past two quarters (Q1 and Q2 2023) after seeing a slight dip in Q4 2022; suggesting a market recovery even with cash rate hikes. In the past 12 months to Q2 2023 house sales declined by -19.9% (to 189 sales), which suggests a market undersupply underpins price growth. Confidence has returned to Hunter Valley*, with properties in high demand.
Average vendor discounts between Q4 2021 and Q4 2022 have swung to a discount of -3.1% for houses and widened to a higher discount of -4.3% for units. Market conditions in Hunter Valley* have shifted to favour buyers, as vendors are willing to accept below the initial list price. That said Q2 2023 average vendor discount is slightly tighter than Q1 2023, thus buyers looking for an affordable option must act fast.
House rental yields in the Hunter Region were recorded at 3.7% in June 2023, higher than Sydney Metro (2.8%). In the 12 months to Q2 2023, the median house rental price increased by 5.5% to sit at $580 per week, while the number of houses rented declined -1.2% (to 167 rentals). Average days on the market remained low at 22 days. The same pattern can be seen in the unit market, thus confirming an undersupplied rental market in Hunter Region.
4+ bedroom houses have provided investors with +6.8% rental growth annually, achieving a median rent of $630 per week.
Hunter Region¥ recorded a vacancy rate of 0.9% in June 2023, slightly below Sydney Metro’s 1.7% average. Vacancy rates in the Hunter Region¥ remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, trending stable sitting under 1.0% for the past 18 months. There is a healthy level of rental demand and investors can be confident of a conducive investment environment, even if property sale prices have started to recover in the past 6 months to Q2 2023.
