Northern Beaches Property Market Update 1st Half of 2024
Northern Beaches in Queensland boasts stunning coastal scenery and pristine beaches, perfect for a relaxed, outdoor lifestyle. The area also offers a strong sense of community and excellent amenities, including schools, shops, and recreational facilities.
Property Trends
In Q1 2024, Northern Beaches recorded a median house price of $495,000 and a median unit price of $360,000. This represents annual (Q1 2023 – Q1 2024) price growth of 10.0% for houses and 10.3% for units. During this time total sales grew by 17.1% for houses and by 16.7% for units. Thus, high demand for both property types has created a buffer against cash rate hikes, making now an ideal time for owners to transact. With very little new supply planned, now is the time for buyers to enter the market.
Average Vendor Discount
Average vendor discounts between Q1 2023 and Q1 2024 have swung from a discount to a premium of 2.2% for houses and tightened to a discount of -2.5% for units. The peak discount periods have passed for both property types (in Q1 2023), thus there is limited time for buyers before further price increase.
Market Conditions
Market conditions in Northern Beaches have shifted to favour sellers, as buyers are willing to offer above or closer to the first listed price. Now is the time to sell.
Rental Market & Growth
House rental yields in Northern Beaches was 6.0% as of April 2024, much higher than Brisbane Metro (3.4%). This was paired with a 16.8% increase in median house rental price in the past 12 months to Q1 2024, at $590 per week. The number of houses rented declined by -22.8% (to 257 rentals), indicating a rental undersupply. The same pattern can be seen in the unit rental market, which confirms a highly demand and undersupplied rental market. This is good news for investors looking for an alternative, more affordable option to Brisbane Metro.
3-bedroom houses have provided investors with +10.6% rental growth annually, achieving a median rent of $520 per week.
Vacancy Rates & Property Investment
Northern Beaches recorded a vacancy rate of 1.5% in April 2024, higher than QLD Northern Coast’s 0.9% and Brisbane Metro’s 1.0%. Vacancy rates in Northern Beaches have decreased significantly in the past 3-4 months, indicating a tighter rental market. Further, a 1.5% vacancy rate is well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, which suggests quicker occupancy. This confirms there is a conducive environment for investors.
