Shepparton Property Market Update 2nd Half of 2022
In Q3 2022, Shepparton recorded a median house price of $459,500, and a median unit price of $310,000. This represents annual (Q3 2021 – Q3 2022) median price growth of 16.3% for houses and 14.8% for units. However, on a quarter-by-quarter basis (Q2 2022 – Q3 2022) median price growth slowed to 1.0% for houses and softened by -15.9% for units. This reflects interest rate hikes translating into the market. Total sales decreased between Q3 2021 – Q3 2022, by -19.4% (to 170 sales) for houses and by -20.5% for units (at 31 sales). Market conditions suggest new opportunities for sellers and buyers.
Average vendor discounts between Q3 2021 and Q3 2022 have rapidly shifted for both property types, to a wider discount of -3.1% for houses and a tighter -2.3% for units. Market conditions in Shepparton have now shifted to favour buyers. Q3 2022 saw the highest house average vendor discount in the past 18 months, thus opening new opportunities for first home buyers.
House rental yields in Shepparton was recorded at 4.7% in September 2022, higher than Northern Victoria (4.0%) and well above Melbourne Metro (2.9%). This was paired with an 11.1% increase in median house rental price in the 12 months to Q3 2022, despite a 10.3% increase (to 224) in the number of houses rented. Average days on the market declined by -8.3% during this period, which further confirms a rental undersupply in the market.
4+ bedroom houses have provided investors with +9.3% rental growth annually, achieving a median rent of $470 per week.
Shepparton recorded a vacancy rate of 0.6% in September 2022, below Melbourne Metro’s 1.7% average. Vacancy rates in Shepparton have held steady over the past 24 months, trending within the 1.0% rate. This suggests rental stability as well as quicker occupancy of rental properties. These key indicators create a conducive and sustainable environment for investors, especially with the recent quarterly downturn in property prices (between Q2-Q3 2022).
