Albury Property Market Update 2nd Half of 2020
In Q2 2020, Albury recorded a median house price of $325,000, and a median land price of $160,000. This represents annual (Q2 2019 – Q2 2020) median price softening of -1.5% for houses and growth of 8.5% for land. Between Q2 2019 – Q2 2020 total sales slowed, by -28.3% for houses (to 142 sales) and by -49.3% for vacant land (to 34 sales), reflecting COVID-19 conditions. With vacant land showing healthy price growth and Government incentives on offer, now is a good time to enter the property market in Albury.
Average vendor discounts between Q2 2019 and Q2 2020 have tightened for houses, to -4.9%, and swung to a premium for land, to 0.3%. Market conditions for land have now shifted to favour sellers, where buyers need to offer above the initial list price. House sellers can achieve a final sale price closer to their first list price, whilst buyers still benefit from a discount.
Over the past 12 months, house rental yields in Albury increased slightly to reach 4.9% in June 2020. This suggests the house rental market is in a healthy position, despite slightly slowed demand for rental properties in Albury across the same time period (-5.9% to 257 house rentals in the 12 months to Q2 2020).
2 bedroom houses have provided investors with +7.7% rental growth annually, achieving a median rent of $280 per week.
Albury recorded an extremely low vacancy rate of 0.7% in June 2020, which represents a declining rate in the past three years. Albury records a historic-low vacancy rate in June 2020 and is well below Sydney Metro’s 3.8% average. There is a growing rental demand in Albury and given current uncertainties due to COVID-19 a declining trend in vacancy rates assures investors of quicker rental occupancy and creates investment confidence.