3228 property market update
WITH One Agency Surf Coast senior sales consultant Olivia Swann
As the spring selling season started in September last year, it presented a slower start compared to the bustling activity typical for the season.
However, what followed was an impressive surge in market momentum, leading to a remarkable performance throughout the year.
In Quarter 4, the local property market achieved its pinnacle, boasting the highest number of sales for the entire year. A total of 92 properties changed hands, marking a significant 27 per cent increase from Q3, 18 per cent from Q2, and a resilient 1 per cent rise from Q1. While the market remained dynamic, house prices experienced a marginal 4 per cent decrease from the start of 2023 to the end. In Q1, the median house price stood at $1,340,000, gradually stabilising to about $1,286,500 by the conclusion of Q4.
The real estate landscape in postcode 3228 exhibited noteworthy shifts over the past year. A total of 257 homes and 57 units were sold, indicating a market that remains robust. To put this in perspective, in 2018, the corresponding figures were 358 homes and 77 units. During this period, the median house price has seen a notable increase, rising from $741,250 in 2018 to an average of $1,292,000 in 2023.
Interestingly, the end of last year witnessed an uptick in the number of investment properties hitting the market. Notably, 29 per cent of the houses One Agency sold in Q4 were investment properties. Various factors, including escalating interest rates, the high cost of living, increased insurance expenses, and stringent compliance regulations, led owners to reconsider the viability of holding onto these investments.
This trend had a cascading effect on the rental market. Our property management team observed a surge in new tenant applications, predominantly from individuals who had regrettably received notices to vacate due to property sales or owners moving back into their residences.
The heightened demand for rental homes inevitably contributed to an increase in rental prices, posing challenges for tenants. The average cost of a four-bedroom rental property in Torquay now stands at $670, while in Jan Juc, it has climbed to $850.
Looking ahead in 2024, the Surf Coast real estate market appears poised for further evolution and growth. Despite challenges, the market has demonstrated resilience and adaptability.
For those seeking more detailed insights or with specific questions about the real estate market in postcode 3228, feel free to reach out at 0499 053 114.