Goonellabah Property Market Update 1st Half of 2023
In Q1 2023, Goonellabah* recorded a median house price of $621,250, and a median unit price of $573,000. This represents annual (Q1 2022 Q1 2023) softening of 15.0% for houses and a minor growth of 0.4% for units. However on a quarterly basis (Q4 2022 Q1 2023) median house prices softened by a lower rate, of 7.0%, and median unit price grew by 12.9 %. This suggest cash rates did translate into the market, but confidence has returned. Total sales declined annually and quarterly, thus an undersupply. There are opportunities for sellers and buyers but higher affordability for houses is on a time limit.
Average vendor discounts between Q1 2022 and Q1 2023 shifted to a higher discount of 5.2% for houses and swung from a premium to a discount of 2.8% for units. Market conditions in Goonellabah* have now shifted to favour buyers, as vendors are willing to accept below the initial listing price. Now is the time to buy. The suburb of Goonellabah has slightly outperformed the wider Lismore Local Government Area (LGA) in both house and unit median prices for the past 5 years. 2023 saw a return to parity for Goonellabah suburb prices, trending closer to LGA prices.
House rental yields in Goonellabah was 4.2 % in March 2023, significantly higher than Sydne y Metro’s 2.9% but on par with Gold Coast Main. This was paired with a 17.6% median house rental price increase (to $600pw ) in the 12 months to Q1 2023, and a 13.6% increase in the number of houses rented ( to 50 rentals). This suggests a highly demanded market, thus an attractive more affordable investment option when compared to Sydney Metro.
4+ bedroom houses have provided investors with +13.3% rental growth annually, achieving a median rent of $680 per week. Goonellabah recorded a vacancy rate of 1.6% in March 2022, which is slightly above Sydney Metro’s 1.3% average. Vacancy rates in Goonellabah have seen an increase in the past 12 months, due to investors re-entering the market and capitalising on a tight rental market. That said it is still well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, which suggests quicker occupancy of rentals. This suggests a conducive and sustainable environment for investors.
