Lismore Property Market Update 2nd Half of 2023

In Q3 2023, Lismore (which in this report represents data for Lismore Local Council) recorded a median house price of $528,000 and a median unit price of $410,000. This is an annual (Q3 2022 – Q3 2023) softening of -12.1% for houses and -17.6% for units. This reflects higher interest rates and changing economic conditions translating into the market. Softer prices create opportunities for buyers who have been waiting to enter the market.

4+ bedroom houses have provided investors with +10.0% rental growth annually, achieving a median rent of $605 per week. House rental yields in Lismore was 4.2% in September 2023, higher than Sydney Metro (2.7%).

A total of $61.0M in project development is scheduled for the 2nd half of 2023, mainly focusing on the commercial sector. Approximately 600 residential lots are planned, however there is an absence of new ready-to-sell stock on the horizon. This will put pressure on prices; thus, any price downturn should only be temporary.

Vacancy rates in Lismore were a low 1.0% in September 2023, slightly below Sydney Metro’s 1.3% average. Vacancy rates in Lismore have fluctuated in the past 12 months, due to investors returning to market. A 1.0% vacancy rate is still low, thus indicating quicker rental occupancy.

Property prices in Lismore are more affordable compared to Gold Coast Metro and Sydney Metro, however with comparable and/or higher rental yields and lower vacancy rates. This makes Lismore an ideal place for investment.