Palm Beach Property Market Update 1st Half of 2024
In Q4 2023, Palm Beach recorded a median house price $1,519,500, and a median unit price of $1,100,000. This represents annual (Q4 2022 – Q4 2023) growth of 4.8% for houses and 41.9% for units. Total sales decreased by -6.8% (to 41 sales) for houses but increased by 17.6% for units (to 100 sales). There is an undersupply of houses, which prompted buyers to pivot towards. Consumer confidence has recovered, leading to a more dynamic market. Now is an ideal time for owners to transact and capitalise on their investment.
Average vendor discounts between Q4 2022 and Q4 2023 have tightened, to -2.2% for houses and -0.8% for units. There is a shift in market dynamics, one that still favour buyers, but shifting closer to a seller’s market. Buyers now need to offer closer to the first list price. The peak of a discount has passed for both property types, in Q4 2022, thus those looking for a discount must act fast.
House rental yields in Palm Beach was 4.2% as of December 2023, higher than Gold Coast Main (4.0%) and Brisbane Metro (3.6%). This was due to the significant median houses rental price growth in the past 12 months, of 17.5%, outpacing median house sales price growth, of 4.8%. Q4 2023 median house rental price reached $1,175 per week, and the number of houses rented declined by -23.7% (to 45 rentals). Thus, an undersupplied and competitive house rental market.
3-bedroom houses have provided investors with +11.8% rental growth annually, achieving a median rent of $950 per week.
Palm Beach recorded a vacancy rate of 1.0% in December 2023, slightly above the Gold Coast City LGA average (0.9%) but below Brisbane Metro (1.2%). Vacancy rates in Palm Beach saw a slight spike in late 2022 – early 2023, potentially due to investors coming back to the market and capitalising on a tight rental market. However, it is still well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This confirms there is still a healthy rental demand and investors can be confident of a conducive investment environment in Palm Beach.
