Kyogle PRD Market Update 1st Half of 2020
In Q4 2019 Kyogle recorded a median house price of $305,000 and a median land price of $172,000. This represents annual (Q4 2018 – Q4 2019) median price softening of -12.9% for houses and a growth of 13.2% for land. Over the same period, demand softened for houses by -32.5% (to 27 sales), however land demand was stable (at 7 sales in Q4 2019). Current market conditions in Kyogle provides great opportunity for first home buyers, as there is less competition and higher affordability in the housing market.
Average vendor discounting between Q4 2018 and Q4 2019 has tightened for houses to -4.5%. There is a shift towards favouring vendors, where buyers are willing to offer closer to the initial listing price. This indicates that buyer confidence is increasing, due to current low interest rates and lenient access to finance.
House rental yields in Kyogle were 3.3% in December 2019, below that of Gold Coast Main (4.1%) and North Coast Region (4.2%). However, over the past 12 months to Q4 2019 house rental median prices remained stable, at $300 per week. Further, unit rental median price grew by 12.1% to $325 per week. This should further establish investor confidence.
2-bedroom houses provided investors with +19.0% rental growth annually, resulting in a median rent of $250 per week.
Kyogle recorded an extremely low vacancy rate of 0.4% in December 2019, lower than Gold Coast Main (2.3%) and North Coast Region (2.2%). There is a healthier rental demand in Kyogle, with rental properties occupied quicker. Combined with a lower median price entry compared to Gold Coast and North Coast Region, Kyogle is an ideal place for investment.