Lismore Property Market Update 1st Half of 2022
In Q1 2022, Lismore recorded a median house price of $750,000, and a median unit price of $527,000. This represents annual (Q1 2021 – Q1 2022) median price growth of 44.2% for houses and 46.5% for units. Total sales heavily decreased between Q1 2021 – Q1 2022, by -40.3% (to 148 sales) for houses and by -18.5% (to 22 sales) for units. Median price growth and lower sales volume suggest an undersupplied market, exacerbated by current flood events in the area impacting supply. Houses suggest real returns on investment, thus an opportunity for owners and down-sizers to benefit.
Average vendor discounts between Q1 2021 and Q1 2022 have swung back to a discount for houses, after recording a premium for the past four quarters. At -1.2% in Q1 2022 this suggests a limited window for buyers. Average vendor discount for units continue to sit at a premium, of 2.3% in Q1 2022, suggesting buyers need to offer above the first list price.
Over the past 12 months, house rental yields in Lismore softened to sit at 3.3% in March 2022. This was due to annual median house sale prices increasing by 44.2%, outpacing annual median house rental price increase of 19.6%. That said there has been an increase in rental demand, of 27.5% (to 139 rentals) in the 12 months to Q1 2022. Average days to let declined by -10.0% during this time, indicating a need for more rental stock.
4+ bedroom houses have provided investors with +20.0% rental growth annually, achieving a median rent of $600 per week.
Lismore recorded a vacancy rate of 0.2% in March 2022, which is below Sydney Metro’s 1.6% average. Vacancy rates in Lismore decreased heavily over the past 24 months and sitting within the 0.5% level for the past 12 months. 0.2% in Q1 2022 is a historical low, indicating a dramatic shift to rental solutions. These key indicators suggest a conducive and sustainable environment for investors, despite the current increase in median property sale prices.
