Tweed Heads Property Market Update 2nd Half of 2022
In Q2 2022, Tweed Heads recorded a median house price of $1,100,000, and a median unit price of $678,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 20.2% for houses and 18.9% for units. Total sales decreased between Q2 2021 – Q2 2022, by -38.9% (to 276 sales) for houses and by -33.7% for units (to 218 sales). Current owner occupiers and down-sizers can benefit from real returns on capital investment, as median price growth has been fuelled by an imbalance in high demand and low stock levels. The market is still heavily undersupplied, in need for ready-to-sell stock.
Average vendor discount swung from a premium in Q2 2021 to a discount in Q2 2022, of -3.6% (for houses) and -1.8% (for units). Market conditions in Tweed Heads have now shifted to favour buyers, as vendors are willing to accept below the initial listing price. Combined with an increase in median sale prices, this creates a unique opportunity for buyers and sellers.
House rental yields in Tweed Heads were recorded at 3.1% in June 2022. This means that investors are making a strong return on investment. In the past 12 months to Q2 2022 median house rental price increased by 19.2%, to $825 per week. The number of houses rented declined by -6.4%, as well as average day on the market (by -8.7%). Overall, this indicates an undersupplied rental environment, a key indicator for investors to enter the market.
3 bedroom houses have provided investors with +15.4% rental growth annually, achieving a median rent of $750 per week.
Tweed Heads recorded a vacancy rate of 0.4% in June 2022, which is below of Gold Coast’s 0.6% and Tweed Shire’s 0.9% average. Vacancy rates in Tweed Heads have held steady over the past 12 months, trending under 1.0%. This indicates quick occupancy of rental properties and stability in rental demand. These key indicators create a conducive and sustainable environment for investors, despite the increase in median sale prices of property over the past 12 months.
