Hunter Valley Property Market Update 2nd Half of 2020
In Q2 2020, Hunter Valley recorded a median house price of $470,000, and a median unit price of $325,000. This represents a slight annual (Q2 2019 – Q2 2020) median price softening of -3.1% for houses and growth of 1.6% for units. Between Q2 2019 – Q2 2020 total house sales slowed, by -9.7% (to 155 sales), while unit sales increased by 45.5% (to 16 sales). Overall, the Hunter Valley market remains in a fairly steady position amidst COVID-19 conditions, which is encouraging for current owners and perspective buyers.
Average vendor discounts between Q2 2019 and Q2 2020 have tightened for both property types, to -3.7% for houses and -3.6% for units. Market conditions in the Hunter Valley provide unique opportunities as sellers can now achieve a final sale price closer to first list price, yet buyers can still benefit from a discount. Now is the time to transact in Hunter Valley.
Over the past 12 months, house rental yields in the Hunter Region increased strongly, to reach 4.2% in June 2020. This suggests the house rental market is in a healthy position, particularly when combined with the 2.7% increase to house rental demand, to 266 rentals in the 12 months to Q2 2020.
3 bedroom houses have provided investors with +2.6% rental growth annually, achieving a median rent of $390 per week.
The Hunter Region recorded a vacancy rate of 1.1% in June 2020. This represents a continues declining trend since June 2017, and an even sharper decline since December 2019 – despite COVID-19 rental market expectations. Vacancy rate in the Hunter Region is positioned well below Sydney Metro’s 3.8% average and travelling in an opposite direction. This confirms there is a healthy rental market and a conducive investment environment in the Hunter Region.