Tweed Coast Property Market Update 2nd Half of 2023
In Q2 2023, Tweed Coast recorded a median house price of $1,587,500, and a median unit price of $821,000. This represents annual (Q2 2022 – Q2 2023) softening of -9.3% for houses and -8.8% for units. That said on a quarterly (Q1 – Q2 2023) basis prices grew by 5.8% (house) and 9.5% (units). Thus, cash rate hikes did impact the market, but consumer confidence have returned. 74 houses were sold in Q2 2023, a -7.5% decline in the past 12 months. This indicates an undersupply and further explains the price growth. Unit sales have increased, likely due to buyers being priced out of the house market.
Average vendor discounts between Q2 2022 and Q2 2023 have undergone significant shifts for both property types in Tweed Coast. During this period, discounts for houses have tightened to -3.9% while discounts for units widened to -4.5%. These changes indicate a shift in market dynamics, one that still favour buyers; however, they now need to offer closer to the initial listing price.
Over the past 12 months, house rental yields in Tweed Coast softened to sit at 3.0% in June 2023; now lower than Gold Coast Main (3.8%). Median house rental price softened by -5.6% in the 12 months to Q2 2023, while median unit rental price remained stable. The number of properties rented have increased, by 44.7% (house) and 20.6% (units), explaining the shift in prices. With unit rental yields at 6.0% as of June 2023 and less supply, there is an opportunity for investors.
2-bedroom units have provided investors with +4.5% rental growth annually, achieving a median rent of $780 per week.
Tweed Coast recorded a vacancy rate of 2.9% in June 2023, which is above Gold Coast Main’s 1.6% average. In the past 12 months vacancy rates in Tweed Coast have returned to pre-COVID-19 levels, most likely due to investors returning to market. The vacancy rate is just below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, which still points to a conducive and sustainable investment environment.
