Bundaberg Property Market Update 2nd Half of 2020
In Q3 2020, the Bundaberg area recorded a median house price of $277,000 and a median unit price of $205,000. This represents annual (Q3 2019 – Q3 2020) median price growth of 10.0% for house, and 6.5% for units. Total sales between Q3 2019 – Q3 2020 declined by -36.0% for houses (to 96 sales) and by -8.7% for units (to 21 sales), however this is due to low levels of stock on the market and/or COVID-19 conditions. Positive median house price growth suggests market resilience in the Bundaberg area, and well positioned for market recovery in 2021. Now is the time to transact.
In the 12 months to Q3 2020, average vendor discounting has tightened for both property types, to 2.8% (houses) and -4.6% (units). Bundaberg provides unique opportunities, where sellers can achieve a final sale price closer to their first list price, whilst buyers can still benefit from a discount. Now is the time to transact.
In September 2020, house rental yields in the Bundaberg area were recorded at 5.0%, well above Brisbane Metro (3.7%) and on par with Bundaberg LGA. In the 12 months to Q3 2020, median house rental price grew by 6.7% to $320 per week. Average days on the market declined by 34.8% (to 15 days). This suggests a resilient rental market amidst COVID-19.
4+ bedroom houses have provided investors with +5.7% rental growth annually, with a median rent of $370 per week.
In September 2020, Bundaberg recorded a significantly low vacancy rate of 0.3%, on par with Bundaberg LGA and sitting well below that of Brisbane Metro (2.0%). Vacancy rates in Bundaberg is now at a historical low, well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and continuing a declining trend even amidst COVID-19 conditions. This confirms there is an increasingly healthier rental demand and a conducive investment environment in the area.