Tannum Sands Property Market Update 1st Half of 2020
In Q1 2020, Tannum Sands recorded a median house price of $341,000, and median unit price of $205,000. This represents annual (Q1 2019 – Q1 2020) median price growth of 8.3% for houses, and slight softening for units by -2.4%. Between Q1 2019 – Q1 2020 total sales increased for houses, by 30.3% to 43 sales, however demand for units were at 4 sales. The Tannum Sands property market is showing signs of resilience, particularly in the house market as the increase in price was not due to less stock, signifying real capital growth.
Average vendor discounting between Q1 2019 and Q1 2020 has tightened to -6.0% (houses). This indicates that market conditions in Tannum Sands have shifted to favouring vendors, where buyers need to offer closer to the listing price. This is evident of a healthy and resilient market, with the potential for capital growth.
House rental yields in Tannum Sands were recorded at 4.3% in December 2019. This suggests that the house rental market is at a healthy position, particularly when combined with the 11.4% increase in median house rental price over the past 12 months, to $320 per week in Q1 2020.
2 bedroom houses provided investors with +15.8% rental growth annually, achieving a median rent of $220 per week.
Tannum Sands recorded a vacancy rate of 2.1% in December 2019, declining from 2.3% in December 2018. Vacancy rates in Tannum Sands have recorded a declining trend over past 12 months, which indicates an increasingly healthier rental demand. This is good news for investors as their properties are being occupied quicker.