Ashmore Property Market Update 2nd Half of 2021

In Q2 2021, Ashmore recorded a median house price of $704,000, and a median unit price of $420,000. This represents annual (Q2 2020 – Q2 2021) median price growth of 15.6% for houses and 28.1% for units. Between Q2 2020 – Q2 2021 total sales increased for houses, by 40.0% (to 70 sales), but slightly slowed by -2.2% for units (to 44 sales). This is a clear indication of increased consumer confidence, with real returns on investment in the house market as price growth is accompanied by higher sale numbers. There is a slight undersupply in the unit market, thus an ideal time to transact.

Average vendor discounts between Q2 2020 and Q2 2021 have swung to a premium for both property types, of 1.9% for houses and 0.8% for units. Ashmore has now shifted to favour vendors, where buyers must offer above the initial listing price. Now is the time for vendors to achieve premium results.

In June 2021, house rental yields in Ashmore were recorded at 4.5%. In the 12 months to Q2 2021, the median house rental price increased by 13.0% to reach $650 per week, while average days on the market significantly declined by -39.3% (to 17 days). These figures indicate a surge in investment returns, inviting astute investors to enter the market.

3 bedroom houses have provided investors with +18.4% rental growth annually, with a median rent of $580 per week.

Also in June 2021, Ashmore recorded a vacancy rate of 0.4%, below that of Gold Coast Main (0.7%) and well below Brisbane Metro (1.3%). Vacancy rates in Ashmore have continued to decline and remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, as the economy recovers from COVID-19. There is a sustainable healthy rental demand and investors can be confident of a conducive investment environment in Ashmore.