Lismore Property Market Update 2nd Half of 2022
In Q3 2022, Lismore recorded a median house price of $590,000, and a median unit price of $527,500. This represents annual (Q3 2021 – Q3 2022) median price growth of 1.7% for houses and 31.5% for units. That said, on a quarter-by-quarter basis (Q2 2022 – Q3 2022) median house price softened by -16.3% and median unit price grew at a lower rate of 3.4%. This reflects interest rate hikes translating into the market. Total sales decreased annually and quarterly, with Q3 2022 recording 179 and 31 house and unit sales respectively. Market conditions suggest opportunities for sellers and buyers.
Average vendor discounts between Q3 2021 and Q3 2022 have rapidly shifted for both property types, to higher discounts of -5.3% for houses and -2.1% for units. Market conditions in Lismore have now shifted to favour buyers, as vendors are willing to offer below the initial listing price. This is a significant change compared to 12 months prior, when buyers were willing to offer higher than the first list asking price.
Lismore house rental yields was 4.4% in September 2022, much higher than Gold Coast Main (4.0%) and Sydney Metro (2.7%). This was paired with a 10.0% increase in median house rental price in the 12 months to Q3 2022, to $550 per week, and a 37.7% increase in the number of houses rented. A similar trend is evident in Lismore’s unit rental market, confirming the area as an attractive more affordable option compared to Gold Coast and Sydney Metro.
3-bedroom houses have provided investors with +14.6% rental growth annually, achieving a median rent of $550 per week.
Lismore recorded a vacancy rate of 0.7% in September 2022, which is below Sydney Metro’s 1.3% average. Vacancy rates in Lismore have held relatively steady over the past 24 months, sitting within the 1.0% rate-band. It also sits under the Real Estate Institute of Australia’s healthy benchmark of 3.0%, thus quicker occupancy of rental properties. These key indicators suggest a conducive environment for investors, particularly with the median house price downturn in the past quarter.
