First Half of 2024 Hunter Valley Property Market Update
During Q4 2023, Hunter Valley recorded a median house price of $700,000 and a median unit price of $561,000. The annual growth rate for houses is 2.4% and for units is 13.3%. The total number of sales declined in Hunter Valley during this period by 1.8% (to 224 sales) and by 2.9% (to 33 sales). Price growth coincides with lower sales, which indicates a market undersupply. With cash rates beginning to stabilise, Hunter Valley properties are in high demand, suggesting now is a good time for owners to transact, especially given the limited amount of ready-to-sell stock.
Between Q4 2022 and Q4 2023, the average vendor discount for houses has increased to -3.9% and for units it has remained relatively stable at -4.0%. The Hunter Valley has been a buyer’s paradise for the past 12 months, with sellers increasingly accepting offers below the first list price. Compared with early and mid-2022, when buyers had to pay a premium, this creates a unique opportunity for buyers and sellers. With sales prices trending upwards, this creates a unique opportunity.
In December 2023, Hunter Valley house rental yields were 3.7%, higher than Sydney Metro (2.8%). In the past 12 months, the median house price rose 3.6%, to $580 per week, and the number of houses rented decreased -8.7% (to 212). The rental housing market is undersupplied, so investors have an opportunity to profit.
At $620 per week, 3-bedroom houses provided investors with a +6.0% rental growth annually.
In December 2023, the Hunter Region recorded a vacancy rate of 1.4%, slightly lower than Sydney Metro’s average of 1.7%. As investors re-entered the market and capitalized on tight vacancy rates in the Hunter Valley over the past 12 months, vacancy rates have steadily increased. While the Hunter Region has a 1.4% vacancy rate, it is still below the Real Estate Institute of Australia’s benchmark of 3.0%, thus suggesting quicker rental occupancy. Even though median sale prices of property have increased over the past year, these indicators create a conducive and sustainable environment for investors.