Morisset Property Market Update 1st Half of 2023
In Q1 2023, Morisset (postcode 2264) recorded a median house price of $835,000. This is an annual (Q1 2022 – Q1 2023) 4.7% growth. On a quarterly basis (Q4 2022 – Q1 2023) median price grew at a faster rate, of 9.3%. House sales decreased annually and quarterly, with Q1 2023 recording the lowest number of sales (68 sales). This suggests that despite cash rate hikes there is still confidence in the market, most probably due to the undersupply of stock. Median unit price softened by -7.0% annually, while quarterly it softened at a lower rate of -5.7%. This creates an opportunity for first home buyers.
Average vendor discounts between Q1 2022 and Q1 2023 have widened to a higher discount for all property types, to -6.4% (from -0.5%) for houses and to -8.7% (from -2.6%) for units. This suggests a move towards a buyer’s market, as sellers are willing to accept lower than the first list price. Now is the time for buyers to enter the market.
House rental yields in Morisset were recorded at 3.4% in March 2023, slightly above Sydney Metro (2.9%). This was paired with a 10.0% increase in median house rental price in the past 12 months to Q1 2023, and a 54.5% increase in the number houses rented. Average days on the market remained low at 29 days. This confirms there is a healthy level of rental demand in Morisset, thus a more attractive and affordable investment option compared to Sydney Metro.
2-bedroom houses have provided investors with +15.8% rental growth annually, with a median rent of $440 per week.
Morisset (postcode 2264) recorded a vacancy rate of 1.6% in March 2023, which is above Sydney Metro’s 1.3% average. Vacancy rates in Morisset have slightly fluctuated in the past 18 months, with an uptick in the past 6-8 months due to investors re-entering the market. That said vacancy rates in Morisset have declined again in early 2023, and still within the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This suggests a high yielding environment for investors.
