Shepparton Property Market Update 1st Half of 2022
In Q1 2022, Shepparton, which in this report include the suburbs of Kialla, Shepparton, Shepparton north, Shepparton East, Mooroopna, and Toolamba; recorded a median house price of $430,000, and a median unit price of $317,500. This represents annual (Q1 2021 – Q1 2022) median price growth of 19.1% for houses and 24.5% for units. Total sales declined between Q1 2021 – Q1 2022, by -19.9% (to 214 sales) for houses and by -4.8% (to 40 sales) for land. The market is undersupplied, as median price growth is due to lower sales figures. Homeowners can benefit from this, as can developers.
Average vendor discounts between Q1 2021 and Q1 2021 have tightened to -0.9% for houses and returned to a discount of 2.7% for units. House market conditions in Shepparton have shifted to favour sellers, where buyers are offering closer to the first list price. Unit buyers are benefitting from a discount, however past performance indicate a more fluctuating market.
House rental yields in Shepparton (postcode 3630) was an attractive 4.9% 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 - as median house rental price have increased by 7.1% in the past 12 months and average days on market a low 22 days in Q1 2022.
3 bedroom houses have provided investors with +6.1% rental growth annually, achieving a median rent of $350 per week.
Shepparton (postcode 3630) recorded a vacancy rate of 0.5% in March 2022, below Northern Victoria of 0.6% and Melbourne Metro 1.9%. Vacancy rates in the area have consistently remained below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, even throughout COVID-19. Vacancy rates have trended within the 1.0% mark for the past 6 months, indicating increased demand coupled with limited supply in the market. These key indicators create a conducive and sustainable environment for investors, due to quicker rental occupancy.
