Tweed Heads Property Market Update 2nd Half of 2023
In Q2 2023, Tweed Heads recorded a median house price of $957,150, and a median unit price of $688,500. This is an annual (Q2 2022 – Q2 2023) -14.3% softening for houses and growth of 0.5% for units. On a quarterly (Q1 2023 – Q2 2023) basis median house price softened at a lower rate, of -6.6%, and unit prices grew even further at 5.9%. This suggests cash rate hikes translated into the market; however, consumer confidence is returning. Total house and unit sales increased annually and quarterly, thus there is high demand. Time is of the essence for those looking for a more affordable house market.
Average vendor discounts between Q2 2022 and Q2 2023 have widened to a lower discount of -5.5% for houses and -3.8% for units. The market conditions in Tweed Heads still favour buyers, as vendors are willing to accept below the initial listing price. That said, Q2 2023 average vendor discount are slightly tighter than the past 6 months, thus buyers must act fast.
House rental yields in Tweed Heads was 3.5% in June 2023, above Tweed Shire LGA (3.2%). Although median house rental price did soften by -2.7% (to $798 per week) in the past 12 months to Q2 2023, there was a 34.7% increase in the number of houses rented (291 rentals). With a lower median house sale price in the past 12 months this created a resilient house rental yield. Median unit price increased by 6.6% (to $650 per week) and number of units rented grew by 32.3%.
2-bedroom houses have provided investors with +7.5% rental growth annually, achieving a median rent of $570 per week.
Tweed Heads recorded a vacancy rate of 1.0% in June 2023, below Gold Coast Main (1.6%) and Tweed Shire LGA (1.7%) average. Vacancy rates in Tweed Heads grew slightly in the past 12 months, due to investors returning and capitalising on the tight market. However, 1.0% vacancy rate is still a very low reading and well below the Real Estate Institute of Australia’s healthy 3.0% benchmark. This suggests quicker rental occupancy and creates a conducive environment for investors.
