Ramsgate Beach Property Market Update 2nd Half of 2020
In Q3 2020, Ramsgate Beach recorded a median house price of $1,500,000, and a median unit price of $712,000. This represents annual (Q3 2019 – Q3 2020) median price growth of 18.7% for houses and 7.5% for units. Between Q3 2019 – Q3 2020 total unit sales increased by 20.2% (to 131 sales), while houses remained steady with 46 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 Ramsgate Beach, thus creating an ideal market for real estate transactions.
Average vendor discounts between Q3 2019 and Q3 2020 have swung to a premium of 2.2% for houses, while units have swung to a discount to sit at -2.7%. House market conditions in Ramsgate Beach have shifted to favour sellers, as buyers are willing to offer above the initial listing price. Now is the time to sell.
In September 2020, house rental yields in Ramsgate Beach were recorded at 2.8%. In the 12 months to Q3 2020, the median house rental price softened slightly to sit at $600 per week, however average days on the market declined by a notable -23.1% (to 20 days). Overall this suggests a relatively resilient rental market despite COVID-19.
4+ bedroom houses have provided investors with +6.3% rental growth annually, with a median rent of $850 per week.
Also in September 2020, Ramsgate Beach recorded a vacancy rate of 5.0%, on-par with Bayside LGA (5.0%), but above Sydney Metro (3.5%). Vacancy rates in Ramsgate Beach are above the Real Estate Institute of Australia’s (REIA) healthy benchmark of 3.0%, due to COVID-19 conditions. Pre-COVID-19 vacancy rates sat at 4.5% and recovered to 3.0% in May 2020, thus there is proof of market recovery. That said landlords may wish to sign tenants to longer leases for security.