Bargara and Coastal Property Market Update 2nd Half of 2020
In Q3 2020, the Bargara and Coastal area recorded a median house price of $383,000 and a median unit price of $312,000. This represents annual (Q3 2019 – Q3 2020) median price growth of 2.1% for house, and a -20.5% decline for units. Total sales between Q3 2019 – Q3 2020 declined by -31.5% for houses (to 63 sales) and by -3.1% for units (to 31 sales), due to low levels of stock on the market and COVID-19 conditions. Now is an opportune time to enter the market, as positive median house price growth suggest market resilience and units have now become more affordable.
In the 12 months to Q3 2020, average vendor discount has tightened for houses to -2.7% but remained stable for units at -3.6%. The Bargara and Coastal area provide unique opportunities. Current market conditions benefits both parties, as vendors can still achieve a final sale price slightly closer to their first list price, whilst house buyers can benefit from a discount.
In September 2020, house rental yields in the Bargara and Coastal area were recorded at 5.0%, well above Brisbane Metro (3.7%). In the 12 months to Q3 2020, median house rental price grew by 7.1% to $375 per week. Further, average days on the market declined by 29.2% (to 17 days). Overall, this represents an extremely resilient rental market amidst COVID-19.
2 bedroom houses have provided investors with +13.2% rental growth annually, with a median rent of $300 per week.
Also, in September 2020, Bargara recorded a significantly low vacancy rate of 0.3%, on par with Bundaberg LGA and sitting well below that of Brisbane Metro (2.0%). Vacancy rates in Bargara is now at a historical low, well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and continuing on a declining trend even amidst COVID-19 conditions. This confirms there is an increasingly healthier rental demand and a conducive investment environment in the area.