Tannum Sands Property Market Update 1st Half of 2023
In Q1 2023, Tannum Sands recorded a median house price of $455,000, and a median unit price of $277,000. This represents annual (Q1 2022 – Q1 2023) median price growth of 5.8% for houses and -7.7% softening for units. On a quarterly basis (Q4 2022 – Q1 2023), median price softened by -3.2% (house) and -12.8% (units). This reflects cash rate hikes and low consumer confidence translating into the market. Sales decreased annually and quarterly, with Q1 2023 recording the lowest number (65 for houses and 6 for units). There is an undersupply, but at the same time a more affordable market for buyers.
Average vendor discounts between Q1 2022 and Q1 2023 have widened to a higher discount for both property types, of -6.0% for houses and -3.0% for units. Market conditions in Tannum Sands have now shifted to favour buyers, as vendors are willing to accept below the initial listing price and Q1 2023 recording the highest average vendor discount for houses in the past 18 months.
House rental yields in Tannum Sands was 5.5% in March 2023, much higher than Brisbane Metro (3.7%). This was paired with a 7.1% increase in median house rental price in the past 12 months to Q1 2023 (to $450 per week) and a -7.0% decline in the number of houses rented (to 66 houses). This suggests an undersupply in the house rental market, which is good news for investors. The unit rental market is proving resilient, with median rent price increasing by 25.9% (to $340 per week).
3-bedroom houses have provided investors with +14.3% rental growth annually, achieving a median rent of $400 per week.
Tannum Sands recorded a vacancy rate of 1.7% in March 2022, below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. Vacancy rates in Tannum Sands have fluctuated over the past 12 months, potentially due to investor uncertainty due to cash rate conditions. That said investment key indicators suggest high rental demand, thus a conducive environment for investors. Now is the time to act, as property prices have become more affordable in the past quarter.
