Buninyong Property Market Update 2nd Half of 2020
In Q3 2020, the Buninyong area recorded a median house price of $623,000. This represents annual (Q3 2019 – Q3 2020) median house price growth of 6.3%. Between Q3 2019 – Q3 2020 sales declined by -53.8% for houses (to 6 sales), however this is potentially due to low levels of stock on the market and/or COVID-19 conditions. Positive median price growth amidst COVID-19 indicate a resilient market, and potentially an undersupply of house stock. Now is an opportune time to transact in the Buninyong market.
Average vendor discounting between Q3 2019 and Q3 2020 has widened to -5.5% for houses. This indicates that market conditions in Buninyong continue to favour buyers, where sellers are accepting prices below the listing price. This is a great opportunity for first home buyers and investors, particularly to take advantage of the ample Government incentives at hand.
In September 2020, house rental yields in the Buninyong area were recorded at 2.4%. In the 12 months to Q3 2020, median house rental price softened by 24.4% at $340 per week. That said, average days to rent a house declined by 56.7% (to 13 days). Overall, this represents a resilient rental market amidst COVID-19, due to increased demand in regional areas.
4+ bedroom houses have provided investors with +5.4% rental growth annually, with a median rent of $490 per week.
In September 2020, Buninyong recorded a significantly low vacancy rate of 0.4%, sitting below Ballarat LGA (0.7%) and well below that of Melbourne Metro (3.8%). Vacancy rates in Buninyong is now at a record 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.