Lake Macquarie Property Market Update 1st Half of 2020
In Q1 2020, Lake Macquarie* recorded a median house price of $657,000, and a median unit price of $542,500. This represents annual (Q1 2019 – Q1 2020) median price growth of 4.7% for houses and 22.3% for units. Between Q1 2019 – Q1 2020 total house sales slowed down by -21.2% (to 123 sales) and have increased by 71.9% for units (to 55 sales). With prices accelerating regardless of the number of available stock, now is a good time to transact in the Lake Macquarie* property market.
Average vendor discounts between Q1 2019 and Q1 2020 have tightened for both property types, to -1.6% for houses and -3.7% for units. Market conditions in Lake Macquarie* is conducive for sellers and buyers. Sellers are achieving final sale prices closer to their first list price, yet buyers can still access a discount.
Over the past 12 months, house rental yields in Lake Macquarie remained fairly steady to sit at 3.6% in December 2019. This suggests the house rental market is in a healthy position, despite a softening in demand for house rentals in the area over the same time period (down by -5.8% in the 12 months to Q1 2020).
4+ bedroom houses have provided investors with +0.9% rental growth annually, achieving a median rent of $540 per week.Lake Macquarie recorded a vacancy rate of 1.3% in December 2019, which is quite low and is well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. It is also well below Sydney Metro’s 3.6% vacancy rates, which confirms a healthy rental demand exists for properties in Lake Macquarie. This is good news for investors looking for a more affordable investment option outside of the Sydney Metro area.