Labrador Property Market Update 1st Half of 2024
In Q4 2023, Labrador recorded a median house price of $1,050,000, and a median unit price of $619,500. This is an annual (Q4 2022 – Q4 2023) 13.7% growth for houses and 16.9% for units. House sales increased between Q4 2022 – Q4 2023, by 16.7% (to 21 sales), but declined by -15.7% for units (to 113 sales). This suggest a highly demanded house market and an undersupplied unit market, as there was price growth even through successive cash rate hikes. The dominant proportion sold in 2023 were in the premium priced bracket of above $1,000,000 for houses (32.1%) and above $700,000 for units (29.2%). The two most affordable price brackets are still available, however continue to shrink in the past 12 months. Now is an ideal time for owners to transact and capitalise on their investment.
Average vendor discounts between Q4 2022 and Q4 2023 have tightened to a smaller discount of -1.7% for houses and -0.6% for units. The market still favour buyers, as sellers are willing to accept lower than their first list price. This creates an opportunity for first home buyers looking to enter the market. That said Q4 2023 average vendor discount is the tightest recorded in the past 18 months, thus for those who are looking for a more affordable time is of the essence; especially with an undersupply of stock.
House rental yields in Labrador was 3.7% as of December 2023, on par with the Gold Coast (4.0%). This was paired with a 7.1% increase in median house rental price in the past 12 months to Q4 2023, at $750 per week. The number of houses rented declined by -21.1% (to 30 sales), due to an undersupply. The same pattern can be seen in the unit rental market. With a more affordable entry price than the Gold Coast, Labrador is ideal for investors.
4+ bedroom houses have provided investors with +2.2% rental growth annually, achieving a median rent of $838 per week.
Labrador recorded a vacancy rate of 0.4% in December 2023, lower than the Gold Coast City LGA average of 1.0%. There is quicker occupancy of rental properties in Labrador, in good news for investors. Labrador vacancy rates have slightly fluctuated in the past 12 months, but have always remained below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This suggests a conducive and sustainable environment for investors, despite the current increase in median sale prices of property over the past 12 months.
