Coffs Harbour Property Market Update 2nd Half 2024
Coffs Harbour is a vibrant costal town on the mid north coast of New South Wales about 540km from Sydney. Known for its beautiful beaches and lush rainforests, Coffs Harbour is also home to the well-known tourist attraction the Big Banana. With a perfect blend of natural beauty mixed with modern amenities, Coffs Harbour is an ideal place to live.
Property Trends
In Q3 2024, Coffs Harbour recorded a median house price of $822,500, and a median unit price of $547,000. This represents an annual (Q3 2023 – Q3 2024) slight price softening of -3.8% for units and a relatively stable price growth for houses. Comparing Q3 2023 – Q3 2024, house sales declined by -25.6% (to 227 sales in Q3 2024) and unit sales grew by 7.8% (to 110 sales in Q3 2024). This suggests the house market is undersupplied, and unit prices show high demand, but the market is impacted by higher interest rates. With a slightly more affordable and stable market, now is an ideal time for buyers to act.
Project Development
Coffs Harbour will see approximately $42.1M of new projects commencing construction in 2024. Most of these developments will be commercial projects. There are 4 units, 6 townhouses, and 96 lots planned, however, this will not be enough to satisfy the current demand. The absence of ready-to-go housing is expected to affect house prices.
Rental Market & Growth
House rental yields in Coffs Harbour were 3.5% in September 2024, higher than the Sydney Metro (2.8%). This was paired with a 6.4% increase in median house price in the past 12 months to Q3 2024, at $630 per week. The number of houses rented has declined by -13.5% in the past 12 months, to 347 rentals in Q3 2024. The same pattern of higher rent and fewer properties rented can also be seen in the unit rental market. This confirms that there is an undersupply of rental properties in Coffs Harbour, which is beneficial to investors.
Vacancy Rates & Property Investment
Coffs Harbour recorded a vacancy rate of 0.9% in September 2024, which is below the Sydney Metro’s 1.6% average. Vacancy rates in Coffs Harbour decreased slightly in the past 12 months, signalling an even tighter rental market. Furthermore, a 0.9% vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting quicker occupancy of rental homes in the area. This confirms that Coffs Harbour is an attractive and sustainable place for investment.
