Tweed Coast Property Market Update 2nd Half of 2022
In Q2 2022, Tweed Coast recorded a median house price of $1,750,000, and a median unit price of $875,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 26.8% for houses and 25.0% for units. Total sales decreased between Q2 2021 – Q2 2022, by -24.0% (to 76 sales) for houses and by -37.9% for units (to 72 sales). Current owners 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, which can provide a buffer in a cash rate hike environment.
Average vendor discount swung from a premium in Q2 2021 to a discount in Q2 2022, of -7.4% (for houses) and -1.0% (for units). Market conditions in Tweed Coast have returned to favouring buyers, as vendors are now 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 Coast were recorded at 3.3% 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 19.5%, to $950 per week. The number of houses rented declined by -22.5%, as well as average day on the market (by -12.0%). Overall, this indicates an undersupplied rental environment, a key indicator for investors to enter the market.
4+ bedroom houses provided investors with +18.9% rental growth annually, achieving a median rent of $1,100 per week.
Tweed Coast recorded a vacancy rate of 1.0% in June 2022, above that of Gold Coast’s 0.6% and Tweed Shire’s 0.9% average. Vacancy rates in Tweed Coast have held relatively steady over the past 12 months, within the 1.5-2.0%. 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.
