Palm Beach Property Market Update 2nd Half of 2022
In Q2 2022, Palm Beach recorded a median house price of $1,440,000, and a median unit price of $895,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 6.2% for houses and 9.5% for units. Total sales for Q2 2021 – Q2 2022 decreased, by -14.3% (to 48 sales) for houses and by -27.0% for units to 81 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 supply levels. The market is undersupplied, in need for ready-to-sell new stock. This can create a buffer in a rising cash rate environment.
Average vendor discounts between Q2 2021 and Q2 2022 have rapidly shifted for both property types, to discounts of -2.4 for houses and -2.3% for units. Market conditions in Palm Beach have now shifted to favour buyers, as vendors are willing to sell below the initial list price. This creates an opportunity to enter the market.
In June 2021, house rental yields in Palm Beach were recorded at 3.4%. House rental yield has increased in the past 12 months due to median house rental price growth, of 14.6%, outpacing median house sales price growth, of 6.2%. Further, Q2 2022 median house rental price reached $900 per week, with a low average day on the market of 21 days. This indicates a strong and resilient rental market.
4+ bedroom houses have provided investors with +45.2% rental growth annually, with a median rent of $1,350 per week.
Palm Beach recorded a vacancy rate of 0.6% in June 2022, which is on par with Brisbane and Gold Coast Metro’s 0.6% average. Vacancy rates in Palm Beach have held steady over the past 12 months, trending within 1.0% for almost 2 years. This indicates quick occupancy 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.
