Bargara Property Market Update 1st Half of 2020
In Q1 2020, Bargara and the Coastal area recorded a median house price of $394,000, and median unit price of $278,000. This represents annual (Q1 2019 – Q1 2020) median price growth of 7.2% (houses) and a softening of -8.9% (units). Between Q1 2019 – Q1 2020 total sales increased, by 6.3% for houses (to 68 sales) and by 5.3% for units (to 20 sales). Bargara and the Coastal area market is showing signs of resilience, particularly for houses, with real capital growth. There is now more affordable opportunities for potential unit buyers.
Average vendor discounting between Q1 2019 and Q1 2020 has tightened to -4.3% (houses), however has widened for units to -7.5%. Market conditions in Bargara and the Coastal area have shifted to favouring vendors for houses, and buyers for units; which is indicative of the many opportunities within the market.
House rental yields in Bargara and the Coastal area were recorded at 5.0% in December 2019. This is on par with the Bundaberg LGA (5.3%), which suggests that the house rental market is in a healthy position, despite a slight softening of -0.7% in median house rental price over the 12 months to Q1 2020.
4+ bedroom houses provided investors with +3.9% rental growth annually, achieving a median rent of $395 per week.Bargara and the Coastal area recorded a low vacancy rate of 1.4% in December 2019. This represents a declining trend a healthy rental market demand over the past 24 months and remaining well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This should encourage investors to enter the market as there is high rental demand, thus a high chance to secure tenants relatively quickly.