Palm Beach Property Market Update 2nd Half of 2023
In Q2 2023, Palm Beach recorded a median house price of $1,515,000, and a median unit price of $857,000. This represents annual (Q2 2022 – Q2 2023) softening of -0.7% (house) and -9.7% (unit). That said on a quarterly (Q1 – Q2 2023) basis median prices grew by 0.7% for houses and softened by a lower percentage of -8.8% (units). Thus, cash rate hikes did impact the market, but consumer confidence is returning. Buyers looking for a more affordable market must act fast. 44 houses were sold in Q2 2023, a -12.0% decline in the past 12 months. This suggests an undersupply and further explains the price growth.
Average vendor discounts between Q2 2022 and Q2 2023 have widened for houses, to -2.3%, and tightened for units, to -0.9%. There is a shift in market dynamics, one that still favour buyers, but they now need to offer closer to the first list price. For both property types, the period for peak of average vendor discount has passed (in Q4 2022).
House rental yields in Palm Beach was 3.7% in June 2023, on par with Gold Coast Main and Brisbane Metro. This was paired with a 6.1% increase in median house rental price in the 12 months to Q2 2023, to $955 per week. The number of houses rented declined by -9.1% (to 50 rentals), which suggest an undersupplied house rental market. With median house sale prices softening in the past 12 months, this creates an opportunity for investors to re-enter the Palm Beach¥ market.
3-bedroom houses have provided investors with +11.8% rental growth annually, achieving a median rent of $950 per week.
Palm Beach recorded a vacancy rate of 1.7% in June 2023, slightly above Gold Coast Main’s 1.6% average Vacancy rates in Palm Beach grew slightly in the past 12 months, due to investors returning and capitalising on the tight market. However, 1.7% vacancy rate is quite a low reading and well below the Real Estate Institute of Australia’s healthy 3.0% benchmark. Overall, this still points to quicker rental occupancy and thus a conducive and sustainable investment environment.
