Palm Beach Property Market Update 2nd Half of 2021

In Q2 2021, Palm Beach recorded a median house price of $1,358,000, and a median unit price of $881,000. This represents annual (Q2 2020 – Q2 2021) median price growth of 53.0% for houses and 41.0% for units. Between Q2 2020 – Q2 2021 total sales in both markets have increased, by 7.3% for houses (to 44 sales) and by 6.4% for units (to 100 sales). This is a clear indication of increased consumer confidence, with real returns on investment as price growth is accompanied by higher transaction volumes. This should encourage vendors to sell, as demand is exceeding supply levels.

Average vendor discounts between Q2 2020 and Q2 2021 have tightened for both property types, at -0.9% for houses, and have swung to a premium of 0.1% for units. The Palm Beach market is now shifting to favour vendors, where buyers must either offer closer to the initial listing price (houses) or above (units).

In June 2021, house rental yields in Palm Beach were recorded at 2.8%. In the 12 months to Q2 2021, the median house rental price increased by 21.9% to reach $780 per week, while average days on the market slightly increased by 5.9% (to 18 days). The increase in average days on market is offset by higher median rental price, indicating a resilient rental market.

2 bedroom houses have provided investors with +12.5% rental growth annually, with a median rent of $585 per week.

Also in June 2021, Palm Beach recorded a vacancy rate of 0.3%, below that of Gold Coast Main (0.7%) and well below Brisbane Metro (1.3%). Vacancy rates in Palm Beach have continue to tighten and recorded historical lows in the past 6 months, remaining well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% as the economy recovers. There is healthy rental demand and investors can be confident of a conducive investment environment in Palm Beach.