Whitsundays Property Market Update 2nd Half of 2020

Whitsundays recorded a median house price of $462,000 and a median unit price of $275,000 in Q2 2020. Annual (Q2 2019 – Q2 2020) median price for houses was stable, however units grew by 13.4%. In Q2 2019 - Q2 2020 sales declined, by -27.5% for house (to 29 sales) and by -30.0% for units (to 28 sales). A decline in demand was expected due to COVID-19, but stable price growth for houses and an increase for units indicates a highly resilient market. Now is an ideal time to transact, whilst there is less competition.

Over the 12 months to Q2 2020, average vendor discounting has tightened to -4.9% (houses) and -3.4% (units). Market conditions in Whitsundays provide unique opportunities. Sellers can achieve a final sale price closer to their first list price, whilst buyers can still benefit from a discount. Now is the time to transact.

In June 2020, house rental yields in Whitsundays was recorded at 5.4%. In the 12 months to Q2 2020 median house rental price softened by -4.3% at $440 per week, however unit median rental price grew by 3.9% at $335 per week.

4+ bedroom houses have provided investors with +4.2% rental growth annually, with a median rent of $500 per week.

Over the June 2020 Quarter, Whitsundays recorded a vacancy rate of 3.5%, above that of Whitsundays Shire LGA (1.9%) and North Coast Region (1.1%). Whitsundays vacancy rates in June 2020 were above the REIA healthy benchmark of 3.0% due to COVID-19 conditions and the tourism nature of the area, however they are lower than they were in June 2019 (3.6%). This confirms there is still an overall stable rental demand, further indicated by a decline of -7.6% in average days to let (to 27 days). Investors can continue to be confident of a conducive investment environment in Whitsundays.