Whitsunday Property Market Update 2nd Half of 2023
In Q2 2023, Whitsundays, which in this report encapsulates postcode 4802, recorded a median house price of $660,000 and a median unit price of $339,000. Annually (Q2 2022 – Q2 2023) median price grew by 5.6% (house) and by 2.7% (units). On a quarter-by-quarter basis (Q1 – Q2 2023) median prices softened by -3.3% (house) and -9.1% (units). This is a reflection of increasing cash rates and higher market uncertainty, even in a market where the number of sales has continued to decline for the past 12 months. There are now new opportunities for buyers, thus an ideal time to enter the market.
Average vendor discounts between Q2 2022 and Q2 2023 have widened for both property types, to higher discounts of -4.2% for houses and -3.9% for units. Market conditions have shifted to favour buyers, as vendors are willing to accept below the first list price. That said Q2 2023 average vendor discount is like Q1 2023, thus the market is stabilising. There is a limited time for buyers seeking affordable options.
House rental yields in Whitsundays was 5.7% in June 2023, lower than Queensland North Coast and Whitsunday LGA (6.2%). That said median house rental price increased by 14.8% in the 12 months to Q2 2023, to $700 per week, whilst the number of houses rented grew by +21.8%. Median unit rental price increased by 26.4% to $550 per week, whilst the number of units rented declined by -8.5%. Overall, this suggests an undersupplied rental market, in good news for investors.
2-bedroom houses have provided investors with +29.1% rental growth annually, achieving a median rent of $710 per week.
Whitsundays recorded a vacancy rate of 0.8% in June 2023, which is below Whitsunday LGA’s 1.8% and North Coast’s 1.1% average. Vacancy rates in Whitsundays saw a slight increase in the past 12 months, potentially due to investors re-entering the market. However, it declined slightly in the past 3 months to June 2023. Vacancy rates are still well below the 3.0% healthy benchmark set by the Real Estate Institute of Australia, thus indicating a conducive environment for investors.
