Tannum Sands Property Market Update 1st Half of 2024
In Q1 2024, Tannum Sands recorded a median house price of $483,000 and a median unit price of $405,000. This represents annual (Q1 2023 – Q1 2024) growth of 6.2% for houses and 43.6% for units. During this time house sales grew by 37.3% (to 103 sales) and unit sales surged by 114.3% (to 15 sales). Confidence has returned to Tannum Sands and there is a high demand for both property types. This has created a buffer against higher interest rates, reflected in price growth for both property types. Without any new housing supply planned for construction, the likelihood of further price growth is high. Thus, now is an ideal time to transact.
Average vendor discounts between Q1 2023 and Q1 2024 have tightened to -0.6% for houses but widened to -3.4% for units. Although the peak discount for both property types has passed, the current discount, particularly for units, remain appealing. That said Q1 2024 recorded the tightest average vendor discount for houses, suggesting a market recovery. Thus, buyers must act fast.
House rental yields in Tannum Sands was 5.6% as of May 2024, much higher than Brisbane Metro (3.4%). This was paired with a 24.7% increase in median house rental price in the past 12 months, at $555 per week, and a -12.0% decrease (to 22 houses) in the number of housed rented. This indicates an undersupply in the house rental market. The unit market presented the same pattern. With a more affordable entry price than Brisbane Metro, Tannum Sands is an ideal investment alternative for investors.
4+ bedroom houses have provided investors with +18.4% rental growth annually, achieving a median rent of $580 per week.
Tannum Sands recorded a vacancy rate of 1.1% in May 2024, on par with Brisbane Metro’s 1.1% average. Vacancy rates in Tannum Sands have declined over the past 12 month, which suggests a tighter rental demand. Further, a 1.1% vacancy rate is well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, indicating quicker rental occupancy in Tannum Sands. Overall, this suggests a conducive environment for investors.
