Lake Macquarie Property Market Update 2nd Half of 2020
In Q3 2020, Lake Macquarie recorded a median house price of $677,500, and a median unit price of $510,000. This represents annual (Q3 2019 – Q3 2020) median price growth of 5.4% for both houses and units. Between Q3 2019 – Q3 2020 total sales increased, by 17.8% for houses (to 199 sales) and by 11.4% for units (to 49 sales). Median price growth and increased sales activity suggest real capital growth in the area, in contrast to general COVID-19 predictions. This indicates high market resilience in Lake Macquarie, thus creating an ideal market for real estate transactions.
Average vendor discounts between Q3 2019 and Q3 2020 have tightened for both property types, to -3.1% for houses and -3.9% for units. Lake Macquarie provide unique opportunities. 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 Lake Macquarie were recorded at 3.2%. In the 12 months to Q3 2020, the median house rental price in Lake Macquarie increased to $500 per week, while the average days to rent a house declined by -44.0% (to 14 days). Overall this suggests Lake Macquarie has remained a resilient rental market throughout COVID-19.
2 bedroom houses have provided investors with +5.3% rental growth annually, with a median rent of $400 per week.
Also in September 2020, Lake Macquarie recorded an extremely tight vacancy rate of 0.2%, below that of Lake Macquarie LGA’s rate of 0.4%, and well below Sydney Metro (3.5%). Vacancy rates in Lake Macquarie is now at a historical low, well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, and continuing on a declining trend even amidst COVID-19 conditions. This confirms there is an ongoing healthy rental demand, which benefits investors.