Upper Hunter Property Market Update 1st Half of 2021
In Q4 2020, the Upper Hunter recorded a median house price of $350,625, and a median unit price of $223,500. This represents annual (Q4 2019 – Q4 2020) median price growth of 6.3% for houses and a price softening of -16.3% for units. Between Q4 2019 – Q4 2020 total sales increased, by 23.3% for houses (to 196 sales) and by 154.5% for units (to 28 sales). Median price growth alongside increased market activity suggest real returns on capital investment, thus creating an ideal market to sell your house. The unit market has become more affordable for first home buyers.
Average vendor discounts between Q4 2019 and Q4 2020 have tightened for houses, to -3.5%, while units widened to -8.1%. Upper Hunter house sellers are achieving final sale prices closer to their first list price, thus now is the time to sell; whilst unit buyers are benefiting from wider discounts, thus a time to buy.
In December 2020, house rental yields in the Upper Hunter were recorded at 5.3%. In the 12 months to Q4 2020. The median house rental price increased by 2.6% to reach $400 per week, while average days on the market declined by -17.2% (to 24 days). Overall, this represents an extremely resilient rental market throughout COVID-19.
4+ bedroom houses have provided investors with +2.4% rental growth annually, returning a median rent of $420 per week.
In December 2020 the Upper Hunter recorded a low vacancy rate of 0.9%, similar to that of the Hunter Region (0.7%) and well below Sydney Metro (3.6%). Vacancy rates in the Upper Hunter is currently the lowest in 2 years and remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This confirms there is a healthy ongoing level of rental demand, suggesting investors can be confident of a conducive investment environment in the Upper Hunter.