The Hills Shire Property Market Update 2nd Half of 2022
In Q2 2022, The Hills recorded a median house price of $1,790,000, and a median unit price of $900,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 8.5% for houses and 7.1% for units. Total sales declined between Q2 2021 – Q2 2022, by -36.9% (to 514 sales) for houses and by -46.4%% for units (to 141 sales). Current owner occupiers and down-sizers can benefit from real returns on capital investment, as median price growth has been fuelled by an undersupplied house and unit market. The imbalance in demand supply can provide a buffer against cash rate hikes.
Average vendor discounts between Q2 2021 and Q2 2022 have rapidly shifted for houses, swinging from a premium to a -2.0% discount on the initial listing price. Units have remained relatively stable at -3.2%. The swing to discount for houses suggests benefits for buyers of both property types, as sellers are willing to accept lower than the first list price. This creates opportunity for both sellers and buyers, as median sale prices have continued to increase.
In June 2022, house rental yields in The Hills Shire were recorded at 2.3%. In the 12 months to Q2 2022, median house rental price increased by 9.4% to reach $700 per week, despite a 6.1% increase (to 1,211) in the number of houses rented. Average days on the market remain the same at 23 days, indicating a highly demanded house rental market.
4+ bedroom houses have provided investors with +7.1% rental growth annually, achieving a median rent of $750 per week.
The Hills Shire recorded a vacancy rate of 1.4% in June 2022, which is below Sydney Metro’s 2.3% average. Vacancy rates in The Hills Shire have crossed over to trend below the Real Estate Institute of Australia’s healthy benchmark of 3.0% 18 months ago, and June 2022 records a historical low vacancy rate for the past 3 years. There is an increasing rental demand and properties are being occupied quicker, which secures rental income cash flow. Thus, investors can be confident of a conducive investment environment in The Hills Shire.
