Bundaberg Property Market Update 1st Half of 2023
In Q1 2023, Bundaberg recorded a median house price of $406,000, and a median unit price of $300,000. This represents annual (Q1 2022 – Q1 2023) median price growth of 9.7% for houses and of 22.7% for units. Quarterly (Q4 2022 – Q1 2023) however, this represents slower growth of 0.2% (house) and 3.4% (units). This suggests cash rate hikes is starting to translate into the market. Total sales between Q1 2022 – Q1 2023 decreased, by -19.7% (to 200 sales) for houses and by -15.0% (to 34 sales) for units. The market is undersupplied, yet property prices have started to become more affordable.
Average vendor discounts between Q1 2021 and Q1 2023 have rapidly shifted for both property types, to lower premiums of 1.3% for houses and discounts of -0.3% for units. Market conditions in Bundaberg have now shifted to favour buyers, as vendors are willing to offer below the initial listing price. Now is the time to buy.
House rental yields in Bundaberg 4.7% in March 2023, higher than Brisbane Metro (3.7%). This was paired with a 17.9% increase in median house rent price in the past 12 months to Q1 2023, as well as a considerable 77.1% increase in the number of houses rented (to 147 rentals). This suggests a highly demanded rental market, in good news for investors.
4+ bedroom houses have provided investors with +23.5% rental growth annually, achieving a median rent of $500 per week.
Bundaberg recorded a vacancy rate was 0.7% in March 2023, slightly below Brisbane Metro’s 0.9% average. Vacancy rates in Bundaberg¥ have held relatively steady over the past 12 months, with a slight uptick in early 2023 due to investors capitalising on a tight rental market. However, the vacancy rate spike in Bundaberg is less than Bundaberg LGA, which suggests quicker occupancy of rental properties. These key indicators create a conducive and sustainable environment for investors, especially with property prices starting to see a slower growth in the past quarter (Q4 2022 – Q1 2023).
