Nagambie Property Market Update 1st Half of 2022
In Q1 2022, Nagambie, which in this report encapsulate Nagambie, Avenel, Murchison, Kirwans Bridge; recorded a median house price of $522,000, and a median land price of $265,500. This represents annual (Q1 2021 – Q1 2022) median price growth of 9.3% for houses and 29.5% for land. Total house sales increased between Q1 2021 – Q1 2022, by 8.3% (to 26 sales), but declined for land, by -15.4% (to 22 sales). There are real returns to capital investment for houses, as price growth is alongside higher sales volume. The land market is undersupplied, an opportunity for landowners to benefit from their investment.
Average vendor discount between Q1 2021 and Q1 2022 have widened for houses, from -2.1% to -3.0%. This suggests sellers are willing to negotiate below their initial listing price. The land market saw a tightening in average vendor discount during the same time, from -4.5% to -3.1%. Land buyers need to offer closer to the first list price to secure their property.
House rental yields in Nagambie (postcode 3608) recorded an attractive rate of 4.0% in March 2022, above Northern Victoria (3.8%) and Melbourne Metro (2.4%). With a lower entry price compared to Melbourne Metro, this is ideal for investors - particularly as median house rental price have increased by 4.7% to $335, due to an undersupply of rental stock.
2 bedroom houses have provided investors with +14.3% rental growth annually, achieving a median rent of $320 per week.
Nagambie (postcode 3608) recorded a vacancy rate of 1.5% in March 2022, above Northern Victoria (0.6%) but lower than Melbourne Metro (1.9%). Vacancy rates in Nagambie have fluctuated over the past 12 months, due to a smaller rental market than other regional areas. That said vacancy rates in Nagambie have remained below the Real Estate Institute of Australia’s healthy benchmark of 3.0% for the past 18 months and under 2.0% for the past 6 months. These key indicators create a conducive environment for investors, however longer leases will safeguard against fluctuations in the market.
