Tweed Coast Property Market Update 1st Half of 2024
In Q4 2023, Tweed Coast recorded a median house price of $1,430,000, and a median unit price of $900,000. This represents annual (Q4 2022 – Q4 2023) softening of –4.7% for houses and 3.6% price growth for units. On a quarterly basis (Q3 –Q4 2023), median house price declined by -13.3% but median unit price grew by 5.1%. Total sales surged by 20.0% (to 102 sales) for houses and by 22.1% (to 83 sales) for units in the past 12 months. Latest quarterly data suggests a more balanced market, as although there is higher demand property prices grew at a slower pace. There is a more affordable house market, in good news for buyers.
Average vendor discounts between Q4 2022 and Q4 2023 have tightened, to -3.4% for houses and -3.2% for units. This is the tightest discount recorded for houses in the past 18 months. The peak of a discount has passed (in Q3 and Q4 2022). The market still favours buyers, with vendors willing to accept below the initial listing prices. However, it is starting to shift towards sellers, with less discount. Buyers looking for a more affordable final price must act fast.
House rental yields in Tweed Coast was 3.0% as of December 2023, lower than Tweed Shire LGA (3.9%). That said median house rental price increased by 5.3% in the past 12 months to Q4 2023, to $948 per week, and the number of houses rented declined by -8.3% (to 77 houses). Further, average day on the market declined by -22.6%, to 24 days. The same pattern can be seen in the unit market, thus there is an undersupplied and resilient rental market in Tweed Coast.
3-bedroom houses have provided investors with +6.3% rental growth annually, achieving a median rent of $580 per week.
Tweed Coast recorded a vacancy rate of 1.0% in December 2023, slightly below the Tweed Shire LGA average (1.1%) and on par with Gold Coast Main (1.0%). Vacancy rates increased in late 2022 – early 2023, due to investors re-entering the market. However, it has notably decreased for the past 9 months due to an increase in rental demand. Further, a 1.0% vacancy rate is well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental properties in Tweed Coast. This suggests a conducive environment for investors.
