Lake Macquarie Property Market Update 2nd Half of 2021

In Q3 2021, Lake Macquarie recorded a median house price of $920,000, and a median unit price of $635,000. This represents annual (Q3 2020 – Q3 2021) median price growth of 35.3% for houses and 23.9% for units. Between Q3 2020 – Q3 2021 total sales slowed for houses, by -15.2% to 196 sales, and picked up for units, up by 46.4% (to 82 sales). With an uptake in sales and median price for units there is real returns in capital investment, whilst lower levels of housing supply and price growth suggest an undersupply. Now is an ideal time for property owners to transact in Lake Macquarie.

Average vendor discounts between Q3 2020 and Q3 2021 have tightened to -0.6% for units and swung to a premium of +2.4% for houses. House market conditions in Lake Macquarie have now shifted to favour vendors, as buyers are willing to offer above the first listing price. Unit buyers can still enjoy a discount, however limited.

In September 2021, house rental yields in the Warners Bay and Eleebana area - Postcode 2282- were recorded at 2.4%. In the 12 months to Q3 2021, the median house rental price increased by 16.0% to reach $580 per week, complemented with average days on the market declining by -6.3% (to 15 days). Despite lower rental yields caused by median house prices outpacing rental price, these figures represent a strong and resilient rental market throughout COVID-19.

3 bedroom houses have provided investors with +12.8% rental growth annually, with a median rent of $530 per week.

Also in September 2021, Postcode 2282 recorded an extremely low vacancy rate of just 0.5%, on par with the Lake Macquarie LGA (0.4%) and well below Sydney Metro (2.7%). Vacancy rates in Lake Macquarie have remained low in the past 12 months and remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. There is strong ongoing rental demand, suggesting investors can be confident of a conducive investment environment in Lake Macquarie.