Nagambie Property Market Update 2nd Half of 2022
In Q3 2022, Nagambie recorded a median house price of $565,000, and a median land price of $265,000. This represents annual (Q3 2021 – Q3 2022) median price growth of 6.3% for houses and 10.4% for land. However, on a quarter-by-quarter basis (Q2 2022 – Q3 2022) median price growth softened by –2.2% for houses and remained stable for land. This reflects interest rate hikes translating into the market. Total sales decreased between Q3 2021 – Q3 2022, by -34.8% (to 15 sales) for houses and by -33.3% for land (at 10 sales). Market conditions suggest new opportunities for sellers and buyers.
Average vendor discounts between Q3 2021 and Q3 2022 have swung to a discount for both property types, of -4.3% (houses) and -2.5% (land). Market conditions in Nagambie have shifted to favour buyers, as sellers are willing to negotiate below their initial listing price. Q3 2022 average vendor discount pattern is akin to that of Q2 2021, signalling a return to “normal market”.
House rental yields in Nagambie was 4.4% in September 2022, much higher than Melbourne Metro’s 2.6%. This was paired with a 6.3% increase in median house rental price in the 12 months to Q3 2022, as well as a -34.8% decrease in the number of houses rented. The same pattern can be seen in Nagambie’s unit rental market. A market undersupply is clear, which creates opportunities for investors looking for a more affordable investment option when compared to Melbourne.
4+ bedroom houses have provided investors with +21.6% rental growth annually, achieving a median rent of $450 per week.
Nagambie recorded a vacancy rate of 0.7% in September 2022, which is well below Melbourne Metro’s 1.4% average. Vacancy rates in Nagambie have fluctuated over the past 12 months, however remaining within the 2.0% rate, below the 3.0% Real Estate Institute of Australia’s healthy benchmark. These key indicators create a conducive and sustainable environment for investors, especially with the median house price slight downturn experienced between Q2 2022 – Q3 2022.
