Ballarat Property Market Update 1st Half of 2023
In Q4 2022, Ballarat recorded a median house price of $551,250, and a median unit price of $400,000. This represents annual (Q4 2021 – Q4 2022) median price softening of -3.7% for houses and growth of 2.6% for units. On a quarterly (Q3 2022 – Q4 2022) basis median house prices softened by -3.5%, whilst units continue to grow, at 2.6%. For the house market this reflects cash rate hikes, lower consumer confidence, and current economic conditions. Q4 2022 recorded the lowest number of house sales, of 362 sales. There are now new opportunities for buyers ready to enter the market.
Average vendor discounts between Q4 2021 and Q4 2022 have widened to a higher discount of -5.9% for houses and swung from a premium to discount of -4.0% for units. Market conditions in Ballarat have shifted to favour buyers, as sellers are willing to negotiate below the initial listing price. Now is the time to buy.
House rental yields in Ballarat was 3.4% in December 2022, higher than Melbourne Metro (2.7%). This was paired with a 5.3% increase in median house rental price in the 12 months to Q4 2022, and stable demand for rental properties. Average days on the market remained at a low 21 (days) during this time, which suggest a resilient market. The unit market shows an undersupply, as median unit rental price increased by 7.9% whilst the number of units rented increased by 1.3%.
2 bedroom houses have provided investors with +6.7% rental growth annually, achieving a median rent of $320 per week.
Ballarat recorded a vacancy rate of 1.5% in December 2022, which is slightly below Melbourne Metro’s 1.7% average. Vacancy rates in Ballarat saw a slight spike in the late 2022, potentially due to investors responding to higher interest rates. However, it is still below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and pre-COVID-19 levels. This suggests a conducive investment environment, especially with a decrease in median house price in the past 12 months.
