Coffs Harbour Property Market Update 1st Half 2023
In Q1 2023, Coffs Harbour recorded a median house price of $835,000, and a median unit price of $555,000. This is an annual (Q1 2022 – Q1 2023) median price softening of -4.0% for houses and 1.1% growth for units. On a quarterly basis (Q4 2022 – Q1 2023) median house price softened marginally by -1.8% and unit median price grew by 3.3%. Cash rate hikes did translate into the market, but consumer confidence have recently returned. In the past 12 months sales declined by -28.1% (houses) and -23.8% (units), thus an undersupply of stock. For those looking for a more affordable market, time is of the essence.
Average vendor discounts between Q1 2022 and Q1 2023 have widened to further discounts, of -6.0% for houses and -3.0% for units. Market conditions in Coffs Harbour now favour buyers, with Q1 2023 recording some of the highest average vendor discounts since 2020. That said average vendor discounts have slightly stabilised between Q4 2022 and Q1 2023, thus sellers can be more confident of market conditions
House rental yields in Coffs Harbour were recorded at 3.9% in March 2023, well above Sydney Metro (2.9%). This was paired with a 5.0% increase in median house rental price in the past 12 months to Q1 2023, and a 30.6% increase in the number of houses rented. Average days on the market remained at a low 25 days in Q1 2023. Overall, this represents a resilient rental market in Coffs Harbour, which has a more affordable investment entry price compared to Sydney Metro.
3-bedroom houses have provided investors with +8.2% rental growth annually, achieving a median rent of $595 per week.
Coffs Harbour recorded a vacancy rate of 2.2% in March 2023, which is above Sydney Metro’s 1.3% average. Vacancy rates in Coffs Harbour saw slight spike in the last 6 months, potentially due to capitalising on a tight rental market. However, it is still below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This suggests a conductive investment environment, especially with a more affordable house price in the past quarter and year.
