Lismore Property Market Update 1st Half of 2023
In Q1 2023, Lismore recorded a median house price of $600,000, and a median unit price of $485,000. This represents annual (Q1 2022 – Q1 2023) median price softening of -19.8% for houses and a price growth of 7.2% for units. Interestingly on a quarterly (Q4 2022 – Q1 2023) basis median house price softened at a slower pace, of -0.8%. This suggests that cash rate hikes did translate in the market, however confidence has returned. Sales declined by -6.4% (houses) and -56.0% (units) in the past quarter, thus an undersupply of stock. For those seeking a more affordable market, time is of the essence.
Average vendor discounts between Q1 2022 and Q1 2023 have widened to a higher discount of -7.2% for house and swung (from a premium) to a -5.0% discount for units. Market conditions in Lismore have now shifted to favour buyers, as vendors are willing to accept below the initial listing price. Now is the time to buy.
House rental yields in Lismore 4.2% in March 2023, on par to nearby Gold Coast Main (4.2%) but significantly higher than Sydney Metro (2.9%). Median house rental price has remained stable in the past 12 months to Q1 2023, at $550 per week, however the number of houses rented have increased (to 320 houses). Median unit rental price growth was 2.6%, at $390 per week. These indicators suggest a resilient rental market, with a more affordable entry price than Sydney Metro.
4+ bedroom houses have provided investors with +8.3% rental growth annually, achieving a median rent of $650 per week.
Lismore recorded a vacancy rate of 1.6% in March 2022, which is slightly above Sydney Metro’s 1.3% average. Vacancy rates Lismore saw a slight spike in the last 6 months, potentially due to investors capitalising on a tight rental market. Yet it is still below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. Thus, a conductive investment environment, even if confidence has returned to the market and property prices are normalising in the past quarter (Q4 2022 – Q1 2023).
