Palm Beach Property Market Update 1st Half of 2021

In Q4 2020, Palm Beach recorded a median house price of $1,127,000, and a median unit price of Queensland Key Market Indicators$739,000. This represents annual (Q4 2019 – Q4 2020) median price growth of 21.9% for houses and 23.2% for units. Between Q4 2019 – Q4 2020 house sales declined, by -8.9% (to 51 sales), but increased for units, by 18.5% (to 154 sales). Price growth and lower stock suggest an undersupplied house market. The unit market shows real return on capital investment, as price growth is matched by an increase in sales. Now is an ideal time to transact, with unique opportunities for both sellers and buyers.

Average vendor discounts between Q4 2019 and Q4 2020 have tightened for both property types, to -0.6% for houses and -1.0% for units. Market conditions in Palm Beach are shifting to favour sellers, however buyers still have some room to negotiate. Now is an opportune time to transact in Palm Beach. 

In December 2020, house rental yields in Palm Beach were recorded at 3.0%. In the 12 months to Q4 2020 the median house rental price grew by 7.7%, to $700 per week. Furthermore, this is in conjunction with average days on the market declining by -26.3% (to 14 days). This establishes Palm Beach as a resilient and highly demanded rental market. 

4+ bedroom houses have provided investors with +5.6% rental growth annually, with a median rent of $898 per week.

In December 2020, Palm Beach recorded a significantly low vacancy rate of 0.3%, below that of Gold Coast Main (0.7%) and Brisbane Metro (1.8%). Vacancy rates in Palm Beach are at all time record lows, and well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This confirms that there is high resilience in the rental market despite COVID-19, thus investors can be confident of a conducive investment environment in Palm Beach.