Bundaberg Property Market Update 2nd Half of 2022
In Q2 2022, Bundaberg recorded a median house price of $383,000, and a median unit price of $245,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 27.9% for houses and a minor price growth of 4.3% for units. In Q2 2021 – Q2 2022 total sales declined, by -8.1% (to 237 sales) for houses and by -36.6% for units (to 26 sales). There is an undersupply for both property types, as median price growth is alongside less sales (low stock) but is more prevalent for houses. Owners looking to sell can capitalise on their investment. An undersupply can create a buffer in a rising cash rate setting.
Average vendor discounts between Q2 2021 and Q2 2022 have rapidly swung to a premium for both property types, of 4.3% for houses and 1.4% for units. Market conditions in Bundaberg continue to favour vendors, as buyers are willing to offer above the initial listing price. Q2 2022 recorded the highest premium for houses, due to the current undersupply.
House rental yields in Bundaberg was 4.9% in June 2022. Median house rental price increased by 25.7% in the 12 months to Q2 2022, to $440 per week. This was paired with a -12.1% decrease in the number of houses rented, which indicates an undersupply. This presents Bundaberg as a viable investment opportunity, and more affordable than Brisbane Metro.
4+ bedroom houses have provided investors with +23.4% rental growth annually, achieving a median rent of $475 per week.
Bundaberg recorded a vacancy rate of 0.4% in June 2022, which is slightly below Brisbane Metro’s 0.6% average. Vacancy rates in Bundaberg have held steady over the past 24 months, trending below 0.5%. This indicates quicker occupancy, which is ideal for rental income cash-flow. Vacancy rates in Bundaberg have remained under the Real Estate Institute of Australia’s healthy benchmark of 3.0%, even when it fluctuated during COVID-19. These key indicators suggest a conducive and sustainable environment for investors, despite the increase in median sale prices of property over the past 12 months.
