Mildura Property Market Update 2nd Half of 2022
In Q3 2022, Mildura recorded a median house price of $427,500, and a median unit price of $305,000. This represents annual (Q3 2021 – Q3 2022) median price growth of 12.1% for houses and 18.4% for units. However, on a quarter-by-quarter basis (Q2 2022 – Q3 2022) median price growth softened by –2.8% for houses and by -4.7% for units. This reflects interest rate hikes translating into the market. Total sales decreased between Q3 2021 – Q3 2022, by -26.8% (to 131 sales) for houses and remained stable for units (at 50 sales). Market conditions suggest opportunities for sellers and buyers.
Average vendor discounts between Q3 2021 and Q3 2022 have rapidly swung to a discount for both property types, of -0.6% for houses and -3.2% for units. Market conditions in Mildura have now shifted to favour buyers, as sellers are accepting offers below the first list price. Q2 and Q3 2022 average vendor discounts is like what was experienced in mid-2021, indicating a return to the “normal market”.
House rental yields in Mildura was recorded at 4.9% in September 2022, higher than Melbourne Metro average (2.6%). This was paired with a 8.6% increase in median house rental price in the 12 months to Q3 2022, to $380 per week, and a 14.9% increase in the number of houses rented. A similar trend is evident in Mildura’s unit rental market, confirming the area as an attractive more affordable investment option compared to Melbourne Metro.
4+ bedroom houses have provided investors with +10.0% rental growth annually, achieving a median rent of $400 per week.
Mildura recorded a vacancy rate of 0.9% in September 2022, below Melbourne Metro’s 1.4% average. Vacancy rates in Mildura have held steady over the past 24 months, trending within the 1.0% band rate. This indicates stability in its rental demand and quicker occupancy of rental properties. These key indicators create a conducive and sustainable environment for investors, particularly with the median property price downturn in the past quarter (Q2 2022 – Q3 2022).
