Burleigh Heads Property Market Update 1st Half of 2024
In Q4 2023, Burleigh Heads recorded a median house price of $1,525,000, and a median unit price of $842,750. This represents annual (Q4 2022 – Q4 2023) softening of –3.8% for houses and a 1.2% price growth for units. During this time total sales decreased, by -1.3% (to 77 sales) for houses and by -31.8% (to 101 sales) for units, most likely due to an undersupply of stock. Interestingly on a quarterly (Q3 – Q4 2023) basis median house price grew by 2.0%, which suggest consumer confidence is returning and house prices are on the road to recovery. Thus, house buyers looking for a more affordable option need to act fast, especially due to low supply.
Average vendor discounts between Q4 2022 and Q4 2023 have significantly tightened, to -0.4% for houses and -0.7% for units. This is the tightest discount recorded for the past 18 months. The peak of a discount has passed (in Q3 and Q4 2022). There is a shift in market dynamics, transitioning towards a sellers’ market. Buyers can still benefit from a slight discount at present; however, time is limited.
House rental yields in Burleigh Heads was 3.2% as of December 2023, on par with the Gold Coast (4.0%). This was paired with a 15.2% increase in median house rental price in the past 12 months, at $1,100 per week, and a 1.0% increase (to 104 units) in the number of housed rented. Average day on the market declined by -4.8%, to a low 20 days. The same pattern can be seen in the unit market, thus there is an undersupplied and resilient rental market in Burleigh Heads.
2-bedroom houses have provided investors with +11.7% rental growth annually, achieving a median rent of $715 per week.
Burleigh Heads recorded a vacancy rate of 1.1% in December 2023, slightly above the Gold Coast City LGA average (1.0%) but below Brisbane Metro (1.2%). Vacancy rates in late 2022 – early 2023, due to investors re-entering the market. However, it has notably decreased for the past 6 months due to more people being priced out of the sale market and opting to rent. This indicates solid rental demand and quicker occupancy. Thus, a conducive and sustainable environment for investors, especially with property sales prices still on the road to recovery.
