Essendon Property Market Shows Different Trends Houses Units

The property market in Essendon continues to demonstrate a clear divide between the performance of detached housing and higher-density units. Data provided by the Real Estate Institute of Victoria (REIV) and other industry sources indicates that prospective buyers are navigating a landscape where houses and units follow notably different trajectories in terms of pricing, growth, and investor appeal.

House Market Activity and Valuation

For those looking at house ownership, the market currently sits at a median house price between $1.73 million and $1.84 million. According to REIV market insights, this segment has experienced annual growth rates ranging from 4.1% to 11.0%. Sales activity has remained steady, with reports showing 58 houses sold within the most recent three-month period. Buyers should note that houses are currently taking longer to clear, with an average time-on-market of 48 days.

Rental demand for houses remains robust. Current data shows the median weekly rent for a house sits between $700 and $800, representing an annual increase of 2.9% to 10.7%. Investors looking at the house market can expect rental yields in the range of 2.2% to 2.7%.

Unit Market Dynamics and Investor Returns

The unit and apartment market in Essendon is characterized by a different set of metrics. The median price for units is currently recorded between $483,000 and $550,000. Unlike the growth seen in houses, the capital growth for units has shown mixed results, oscillating between a decline of 2.7% and a flat 0.0%.

Despite the more conservative capital growth figures, units remain a highly active segment of the local market. There were 60 units sold over the last three months, and these properties are moving more quickly than detached houses, with a median time on market of 36 days. For investors, units offer stronger immediate returns, with rental yields reported between 5.2% and 5.5%. Weekly rents for these properties currently range from $490 to $525, reflecting an annual increase of 5.8%.

Practical Considerations for Prospective Buyers

As market conditions fluctuate, prospective buyers and investors are encouraged to monitor the time-on-market metrics, which highlight a faster turnaround for unit sales compared to the more protracted sales process for houses. The distinct yields between the two categories suggest that those prioritizing immediate rental income may find the unit market more aligned with those objectives, while house purchasers are currently focused on the higher growth potential despite the lower yield profiles.

Produced with AI assistance and reviewed against our editorial standards. Sources are linked where available. Spotted an error or need a correction? Contact corrections@dailynetwork.news.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.