Lake Macquarie Property Market Update 2nd Half of 2022
In Q3 2022, Lake Macquarie, recorded a median house price of $937,500. This is an annual (Q3 2021 – Q3 2022) 1.4% median price growth. That said, on a quarter-by-quarter basis (Q2 2022 – Q3 2022), the median house price softened by -4.8%. This reflects interest rate hikes translating into the market. Total house sales decreased annually and quarterly, with Q3 2022 recording the lowest number (130 sales). The unit market recorded an 8.3% median price growth annually and 3.4% quarterly, whilst also recording lower number of sales. Opportunities exist for sellers and buyers in both markets.
Average vendor discounts between Q3 2021 and Q3 2022 have rapidly shifted for both property types, to discounts of -3.1% for houses and -3.2% for units. Market conditions in Lake Macquarie have started to shift towards favour buyers, as vendors are willing to offer below the initial listing price.
In September 2022, house rental yields in Lake Macquarie were recorded at 3.0%, higher than Sydney Metro (2.5%). In the 12 months to Q3 2022, median house rental price increased 5.1% to reach $620 per week, despite a 21.6% increase (to 180) in the number of houses rented. Average days on the market remain low at 17 days. Overall, this represents a resilient rental market in Lake Macquarie, which has a more affordable investment entry price compared to Sydney Metro.
3-bedroom houses have provided investors with +11.3% rental growth annually, achieving a median rent of $590 per week.
Lake Macquarie recorded a vacancy rate of 0.4% in September 2022, which is well below Sydney Metro’s 1.6% average. Vacancy rates in Lake Macquarie have held steady over the past 12 months and have stayed within the 1.0% range over the past 18 months. This indicated stability in the area’s rental demand. These key indicators create a conducive and sustainable environment for investors, particularly with the median house price downturn in the past quarter.
