Burleigh Heads Property Market Update 2nd Half of 2023
In Q2 2023, Burleigh Heads recorded a median house price of $1,367,500, and a median unit price of $821,000. This represents annual (Q2 2022 – Q2 2023) softening of -2.3% (houses) and -3.4% (units). That said on a quarterly (Q1 – Q2 2023) basis median house prices softened at a lower rate, of -0.7%. Thus, cash rate hikes did impact the house market, but consumer confidence have returned. 178 houses were sold in Q2 2023, a -4.3% decline in the past 12 months. This suggests an undersupply and further explains the price growth. Thus, time is of the essence for those looking for a more affordable market.
Average vendor discounts between Q2 2022 and Q2 2023 have tightened to -2.8% for houses and -1.7% for units. For units, average vendor discount has remained relatively stable in the past 12 months. For houses, the peak of a discount has passed (in Q4 2022). There is a shift in market dynamics, one that still favour buyers, but they now need to offer closer to the first list price.
House rental yields in Burleigh Heads was 3.9% in June 2023; slightly higher than Gold Coast Main (3.8%) and Brisbane Metro (3.7%). Median house rental price softened by -5.6% in the 12 months to Q2 2023, while median unit rental price remained stable. The number of properties rented have increased, by 44.7% (house) and 20.6% (units), explaining the shift in prices. With unit rental yields at 6.0% as of June 2023 and high demand, there is an opportunity for investors.
3-bedroom houses have provided investors with +9.2% rental growth annually, achieving a median rent of $928 per week.
Burleigh Heads recorded a vacancy rate of 2.2% in June 2023, which is above Gold Coast Main’s 1.6% average. In the past 12 months vacancy rates in Burleigh Heads have significantly increased, due to investors returning and capitalising on the tight market. Vacancy rate in Burleigh Heads is just below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, which still points to quicker rental occupancy and thus a conducive and sustainable investment environment.