Nundah Property Market Update 1st Half of 2023
In Q1 2023, Nundah recorded a median house price of $1,200,000, and a median unit price of $450,000. This represents annual (Q1 2022 – Q1 2023) median price softening of -1.6% for houses and a 3.8% price growth for units. That said, on a quarterly basis (Q4 2022 – Q1 2023) median house price grew by 12.1%. This suggests that cash rate hikes did translate in the market, but confidence has returned. Total sales decreased annually and quarterly, with Q1 2023 recording the lowest number of sales (15 houses and 86 units). With a market undersupply, affordable options are limited to the unit market.
Average vendor discounts between Q4 2021 and Q4 2022 have swung to a discount of -0.4% for houses and lower premiums of 0.1% for units. Market conditions in Nundah have shifted to favour buyers, as vendors are willing to accept either below the first list price (house) or a smaller premium (units). Now is the time to buy.
House rental yields in Nundah was 2.8% in March 2023, lower than Brisbane Metro’s (3.7%) due to the premium pricing nature of the area. That said median house rental price increased by 3.3% (to $620 per week) in the past 12 months to Q1 2023, alongside a -13.5% decline in the number of houses rented (to 32 houses). The same trend can be seen in the unit rental market, which suggests an undersupply. This is beneficial for those who wish to invest in the area.
2-bedroom houses have provided investors with +19.0% rental growth annually, achieving a median rent of $500 per week.
Nundah recorded a vacancy rate of 0.7% in March 2022, slightly below Brisbane Metro’s 0.9% average. Vacancy rates in Nundah have fluctuated over the past 12 months, potentially due to the higher entry price and lower rental yield (compared to Brisbane Metro). Yet it is still below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. Thus, a conductive investment environment, even if property prices have normalised in the past quarter (Q4 2022 – Q1 2023).
