Shepparton Property Market Update 2nd Half of 2023
In Q3 2023, Shepparton (which in this report include Kialla, Shepparton, Shepparton East, Mooroopna, Toolamba, Congupna and Tallygaroopna) recorded a median house price of $450,000, and a median unit price of $327,500. This represents annual (Q3 2022 – Q3 2023) softening of -2.2% for houses and 1.4% growth for units. On a quarterly basis (Q2 2023 – Q3 2023) median price softened also by -2.2% for houses and grew by 13.1% for units. There is an undersupply in the market, especially with unit stock unavailability leading to higher prices. That said there is a higher level of affordability for those looking for a house. Average vendor discounts between Q3 2022 and Q3 2023 shifted to a higher discount of -5.8% for (houses) and -5.8% for units. Shepparton market conditions favour buyers, as sellers are willing to accept below the first list price. Q3 2023 vendor discount figures have stabilised since Q1 2023, which is ideal for buyers. House rental yields in Shepparton was 4.6% in September 2023, higher than Northern Victoria (3.7%) and Melbourne Metro (2.9%). This was paired with a 10.0% increase in median house rental price in the past 12 months to Q3 2023, however with a lower number of houses rented (down by -13.1% to 193 houses). This suggests an undersupply in the house rental market, creating an attractive and affordable investment opportunity when compared to Melbourne Metro. 2 bedroom houses have provided investors with +12.9% rental growth annually, achieving a median rent of $350 per week. Shepparton recorded a vacancy rate of 0.6% in September 2023, which is slightly below Melbourne Metro’s 1.2% average. Vacancy rates in Shepparton have held steady over the past 12 months, indicating stability in its rental demand and quicker rental occupancy. These key indicators create a conducive and sustainable environment for investors, despite the current increase in median sale prices of property in the past 12 months and quarter.
Key Findings
- In Q3 2023, Shepparton (which in this report include Kialla, Shepparton, Shepparton East, Mooroopna, Toolamba, Congupna and Tallygaroopna) recorded a median house price of $450,000, and a median unit price of $327,500. This represents annual (Q3 2022 – Q3 2023) softening of -2.2% for houses and 1.4% growth for units. There is an undersupply in the market, especially with unit stock unavailability leading to higher prices.
- 2 bedroom houses provided investors with +12.9% rental growth annually, achieving a median rent of $350 per week. House rental yields in Shepparton was 4.6% in September 2023, higher than Northern Victoria (3.7%) and Melbourne Metro (2.9%).
- A total of $10.8M in project development is scheduled for the 2nd half of 2023, mainly focusing on the residential sector. 31 dwellings and 20 lots are planned, which will assist with current demand.
- Vacancy rates in Shepparton were a low 0.6% in September 2022, indicating strong rental demand. Vacancy rates in Shepparton have held steady over the past 12 months, indicating stability in its rental demand and quicker rental occupancy.
- Property prices in Shepparton are more affordable compared to Northern Victoria and Melbourne Metro, however with comparable and/or higher rental yields and lower vacancy rates. This makes Shepparton an ideal place for investment.
