Coolangatta Property Market Update 2nd Half of 2023
In Q2 2023, Coolangatta recorded a median house price of $1,000,000, and a median unit price of $690,000. This represents annual (Q2 2022 – Q2 2023) growth of 1.5% (house) and 7.1% (unit). That said on a quarterly (Q1 – Q2 2023) basis, median house price growth remained 1.5%, but tapered slightly to 5.3% for units. In the past 12 months to Q2 2023 the number of houses sold declined by -17.8%, thus an undersupply fuelling price growth. Overall, this suggests cash rate hikes have had a mild impact on the market and due to the undersupply buyers looking for a more affordable market must act fast.
Average vendor discounts between Q2 2022 and Q2 2023 have tightened for houses, to -1.5%, and widened for units, to -1.3%. There is a shift in market dynamics - one that still favour buyers, but they now need to offer closer to the first list price. For both property types, the period for peak of average vendor discount has passed (in Q4 2022 for units and Q1 2023 for houses).
House rental yields in Coolangatta was 2.5% in June 2023, below Gold Coast Main (3.8%) and Tweed Shire (3.2%). That said, median house rental price increased by 4.7% in the 12 months to Q2 2023, to $775 per week. The number of houses rented grew by +15.8% (to 1917 rentals), which suggest a highly demanded rental market. With median house sale price growth relatively stable in the past 12 months, there are new opportunities for investors to re-enter the Coolangatta¥ market.
4+ bedroom houses have provided investors with +10.7% rental growth annually, achieving a median rent of $830 per week.
Coolangatta recorded a vacancy rate of 1.8% in June 2023, slightly above Tweed Shire’s 1.7% average. In the past 12 months vacancy rates in Coolangatta have significantly increased, due to investors returning and capitalising on the tight market. However, a 1.8% vacancy rate is quite a low reading and well below the Real Estate Institute of Australia’s healthy 3.0% benchmark. Overall, this still points to quicker rental occupancy and thus a conducive investment environment.
