Tweed Heads Property Market Update 1st Half of 2021
In Q4 2020, Tweed Heads recorded a median house price of $738,000, and a median unit price of $500,000. This represents annual (Q4 2019 – Q4 2020) median price growth of 7.8% for houses and 8.1% for units. Between Q4 2019 – Q4 2020 house sales declined, by -1.8% (to 482 sales), but increased for units, by 6.2% (to 343 sales). Price growth and lower stock suggest a potential undersupply in the house market. The unit market shows real return on capital investment, as price growth is matched by an increase in sales. Now is an ideal time to transact, with unique opportunities for both sellers and buyers.
Average vendor discounts between Q4 2019 and Q4 2020 have tightened for both property types, to -3.0% for houses and -2.9% for units. Market conditions in Tweed Heads are shifting to favour sellers, however buyers still have some room to negotiate. Now is an opportune time to transact in Tweed Heads.
In December 2020, house rental yields in Tweed Heads were recorded at a healthy 5.8%. In the 12 months to Q4 2020, median house rental price increased by 0.3% to $580 per week. This is in conjunction with average days on the market declining by -36.0% (to 16 days). This establishes the Tweed Heads rental market as a highly demanded area.
4+ bedroom houses have provided investors with +9.7% rental growth annually, with a median rent of $680 per week.
In December 2020, Tweed Heads recorded a significantly low vacancy rate of 0.2%, well below that of Tweed Shire LGA (0.7%) and Gold Coast Main (0.7%). Vacancy rates in Tweed Heads are at record lows, and well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This confirms there is resilience in the rental market despite COVID-19, thus investors can be confident of a conducive investment environment in Tweed Heads.