Tweed Heads Property Market Update 1st Half of 2023
In Q4 2022, Tweed Heads recorded a median house price of $1,000,000, and a median unit price of $655,000. This represents annual (Q4 2021 – Q4 2022) median price softening of -6.8% for houses and a softening of -3.7% for units. On a quarterly (Q3 – Q4 2022) basis median house prices softened by -3.6%, but units grew marginally by 1.5%. The house market is reflecting cash rate hikes, lower consumer confidence, and current economic conditions. Q4 2022 recorded the lowest number of house sales, of 224 sales. There are now new opportunities for houses buyers who are ready to enter the market.
Average vendor discounts between Q4 2021 and Q4 2022 have widened to a higher discount of -5.7% for houses and swung from a premium to a -6.0% discount for units. Market conditions in Tweed Heads 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 Tweed Heads was 5.0% in December 2022, higher than Tweed Shire LGA (3.7%) and Gold Coast Main (3.9%). Median house rental price has increased by 16.4% in the 12 months to Q4 2022, whilst the number of houses rented increased by 20.0%. The same pattern can be seen in the unit rental market; thus, Tweed Heads has a resilient rental market and continues to be an attractive option compared for investors.
3 bedroom houses have provided investors with +13.6% rental growth annually, achieving a median rent of $750 per week.
Tweed Heads recorded a vacancy rate of 0.6% in December 2022, below Tweed Head LGA (1.4%) and on par with Gold Coast Main (0.6%). Vacancy rates in Tweed Heads saw a slight uptick in late 2022, mostly due to the number of investors capitalising on a tight rental market. That said vacancy rates remain below pre-COVID-19 levels. This suggests a conducive and sustainable environment for investors, especially now with softer median property sale prices.
