Southport Heads Property Market Update 1st Half of 2023
In Q4 2022, Southport recorded a median house price of $880,000, and a median unit price of $535,000. This represents annual (Q4 2021 – Q4 2022) median price softening of -2.2% for houses and 10.3% price growth for units. Further, on a quarterly (Q3 2022 – Q4 2022) basis median house prices fell by -3.8%, whereas units grew at a slower pace of 2.3%. The market is reflecting cash rate hikes, lower consumer confidence, and current economic conditions. Q4 2022 recorded the lowest number of house sales, of 67 sales. There are now new opportunities for buyers ready to enter the market.
Average vendor discounts between Q4 2021 and Q4 2022 have rapidly swung from a premium to discounts of -3.9% for houses and -1.2% for units. The market conditions in Southport have now shifted to favour buyers, as vendors are willing to accept below the initial listing price. Now is the time to buy.
House rental yields in Southport was 4.0% in December 2022, on par with Gold Coast Main (3.9%). This was paired with a 15.8% increase in median house rental price in the 12 months to Q4 2022 and a 5.4% increase in the number of houses rented. On a 6-month basis to Q4 2022 median house rental price increased slower, by 4.7% to $720 per week, with a 7.5% increase in the number of houses rented. The Southport rental market is becoming steadier, in good news to renters.
2-bedroom houses have provided investors with +22.2% rental growth annually, achieving a median rent of $550 per week.
Southport recorded a vacancy rate of 0.3% in September 2022, which is slightly below Gold Coast Main’s 0.6% average. Vacancy rates in Southport have held steady relatively over the past 12 months and under the Real Estate Institute of Australia healthy benchmark of 3.0%. This indicates rental demand stability and quicker occupancy. Thus, a conducive and sustainable environment for investors, especially with a decrease in median sale prices of property in the past 12 months.
