Coolangatta Property Market Update 2nd Half of 2022
In Q2 2022, Coolangatta recorded a median house price of $970,000, and a median unit price of $615,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 16.9% for houses and 16.0% for units. Total sales decreased between Q2 2021 – Q2 2022, by -31.6% (to 1,952 sales) for houses and by -36.5% for units (to 2,594 sales). Current owners can benefit from real returns on capital investment, as median price growth has been fuelled by an imbalance in high demand and low stock levels. The market is undersupplied, which can create a buffer in a rising cash rate environment.
Average vendor discounts between Q2 2021 and Q2 2022 have shifted for both property types, creating a two-speed market. Average vendor discount has swung to a discount of -0.1% for houses and to a premium of 0.4% for units. House buyers can now benefit from a slight discount, whereas unit buyers must offer above the first list price. This creates unique opportunities for both sellers and buyers for each property type.
Over the past 12 months, house rental yields in Coolangatta increased to sit at 2.0% in June 2022. This was paired with a slight increase in demand for rental properties across the same time (up by +31.4% to 1,855 rentals in the 12 months to Q2 2022). This is an expected dynamic shift in the market, as there has been a decrease in property sales. Median house rental price increased by 21.0% to $750 per week during this time, indicating high return for investors.
3 bedroom houses have provided investors with +17.6% rental growth annually, achieving a median rent of $700 per week.
Coolangatta recorded a vacancy rate of 0.5% in June 2022, which is slightly below Gold Coast’s 0.6% and Tweed Shire LGA 0.9% average. Vacancy rates in Coolangatta have held steady over the past 12 months, trending below 1.0%. This indicates stability in the area’s rental demand. These key indicators create a conducive and sustainable environment for investors, despite the increase in median sale prices of property over the past 12 months.
