Ballarat Property Market Update 2nd Half of 2022
In Q2 2022, Ballarat, which in this report represents postcodes 3350,3356 & 3355; recorded a median house price of $600,000, and a median unit price of $395,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 17.5% for houses and 13.3% for units.
Total sales decreased between Q2 2021 – Q2 2022, by -19.7% (to 452 sales) for houses and by -34.1% for units (to 87 sales). The market is undersupplied, as price growth is alongside lower sales volume. Owners can benefit from real returns on investment, and the imbalance in supply and demand can provide a buffer to rising cash rates.
Average vendor discounts between Q2 2021 and Q2 2022 have widened for both property types, to higher discounts of -3.0% for houses and -2.5% for units. Market conditions in Ballarat suggest an opportunity for buyers, as vendors are willing to accept below the initial listing price. This can counter-act the current increase in prices, improving affordability for first home buyers.
House rental yields in Ballarat¥ was at 3.3% in June 2022, higher than Melbourne Metro (2.5%). This was paired with a 6.9% increase in median house rental price between Q2 2021 – Q2 2022 and an 8.9% increase in the number of houses rented. This suggest a highly demanded market, as renters are willing to accept higher rents despite the availability of houses for rent. This is an expected dynamic shift in the market, as there has been a decrease in property sales.
2 bedroom houses have provided investors with +10.3% rental growth annually, achieving a median rent of $320 per week.
Ballarat recorded a vacancy rate of 0.9% in June 2022, which is well below Melbourne Metro’s 1.7% average. Vacancy rates in Ballarat have held steady over the past 12 months, trending within the 1.0% band. This suggests quick occupancy due to stable rental demand. These key indicators create a conducive and sustainable environment for investors, despite the increase in median sale prices of property over the past 12 months.
