Tweed Heads Market Update 2nd Half 2024
In Q2 2024, Tweed Heads* recorded a median house price of $1,075,000 and a median unit price of $760,000.This represents annual (Q2 2023 –Q2 2024)growth of 10.3% forhouses and 5.6%for units. Comparing Q2 2023and Q22024total sales increased by 6.0% forhouses (to 351 sales in Q2 2024), and by 17.9%for units (to 257sales in Q2 2024). There is high demand in Tweed Heads*, which has created a buffer against higher interest rates. This is evident through the price growth in the past 12 months and 3 months, making it an ideal time for owners to capitalize on their investments. Further, with no new stand-alone houses planned, home buyers should actfast before further price growth occurs.
CHANGE FROM LAST
Tweed Heads will see approximately $216.5Mofnewprojectscommencing inthe2nd halfof2024
YEAR HALF YEAR
HOUSE SALES
HOUSE MEDIAN PRICE
HOUSE RENTAL PRICE
SALES
RENTAL PRICE
MEDIAN PRICE Q2 2024
$1.07M $760K
MEDIAN PRICE Q2 2024
AVERAGE DAYS ON MARKET Q2 2024
55
AVERAGE DAYS ON MARKET Q2 2024
These projectswill stimulate economic growthandcreatelocal jobopportunities in TweedHeads.This will havea spill-over impacton the real estatemarket,in the form of higher demandfor housing.
A main mixed-use project in 2024is Kings Forest At Kingscliff Master Plan Community ($100.0M),which plans to add 4,500dwellings. This includes constructing 2,700low-density and 1800medium-density dwellings. This is a long-term plan, with a planned completion timeframe in mid-2030.
Residential projects include:
• Kai Residences Kingscliff (14 Units)
• 75Kingscliff Street Townhouses (3 Townhouses)
There are still nonew ready-to-sell houses planned in the short term. This suggests further price growth.
AVERAGE VENDOR DISCOUNT*
Average vendor discount reflects the average percentage difference between the first list price and final sold price. A lower percentage difference (closer to 0.0%) suggests that buyers are willing to purchase close to the first asking price of a property.
Average vendor discounts between Q2 2023and Q2 2024 have tightened to -3.7% for houses and -0.8% forunits. The peak discount has passed for both property types, which was mostly in Q1 and Q2 2023. Tweed Heads* still favour buyers, as the final sale price is still below the first list price. Thatsaid Q2 2024average vendor discount is now smaller than 12months prior, suggesting a shift towards sellers. Thus,buyers wishing toaccess a discount must act fast.
The suburb of Tweed Heads has performed onpar with the Tweed Shire Local Government Area (LGA) in bothhouse and unit median price for the past 5 years. However, in 2024# Tweed Heads saw a notable increase in median house price, with growth outpacing the broader LGA. The unit market is still onpar, thus an opportunity for buyers.
The dominant proportion of homes sold in Tweed Heads* across 2024#were in the premium price bracket of above $1.2M (38.0%)for houses and above $900K(24.2%) for units. Affordable options are also available, with 34.6%of houses sold for less than $899,999and 23.0%of units sold for below $599,999.Overall, there are opportunities for both buyers and sellers across all different budgets
MARKET COMPARISON
Tweed Heads (2485) House
Tweed Heads (2485) Unit
Tweed Shire LGA House
Tweed Shire LGA Unit
The market comparison graph providesa comparative trend for median price of houses and units over the past 5 years. The main LGA chosen was based on their proximity to the main suburb analysed, which is Tweed Heads.
PRICE BREAKDOWN 2024 #
$700,000 to $799,999 $800,000 to $899,999 $900,000 and above
RENTAL GROWTH 2024
€
House rental yields in Tweed Heads¥ was 4.2%as of July 2024, higher than Tweed Shire LGA (3.5%) and Gold Coast Main (3.2%). This was supported by a 3.4% annual growth in median house rental price, now at $750per week (as of Q22024) and a stable number of houses rented. This indicates a resilient house rental market. The unit rental market experienced a 9.2% growth in median rental price and a -23.3%drop in the number of rentals, suggesting an undersupply. Both rental markets are beneficial for investors, despite a higher median sale price in Q2 2024.
4+ bedroom houses have provided investors with a remarkable +18.2%rental growth annually, achieving a median rent of $1,300per week.
Tweed Heads¥ recorded a vacancy rate of 1.3% in July 2024,lower than Tweed Shire LGA average (1.5%) and Gold Coast Main (1.7%). Vacancy rates has increased in the past 12months, due to investors re-entering the market. However, a 1.3% vacancy rate is well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This indicates a quicker occupancy of rental properties in Tweed Heads*, confirming a conducive and sustainable environment for investors.
RENTAL VACANCY RATES 2024
Tweed Heads (2485) Tweed Shire LGA Gold Coast Main REIA 'Healthy' Benchmark
RENTAL YIELD 2024§
TweedHeads¥
PROJECT DEVELOPMENT MAP 2 nd HALF 2024
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REFERENCES
* Tweed Heads sales market data and key indicators encapsulates aggregate property market conditions within the Tweed Shire Local Government Area.
** Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value.
# 2024 encapsulates sales transactions for 1st Half 2024 (01/01/2024 – 30/06/2024) only, other years encapsulates sales transactions for the full year (i.e 01/01 to 31/12 of the relevant year).
€ Annual rental growth is a comparison between Q2 2023 (01/04/2023 – 30/06/2023)and Q2 2024 (01/04/2024 – 30/06/2024) house median rent figures.
¥ Tweed Heads rental market data encapsulates aggregate property conditions within the postcode of 2485.
§ Rental yields shown are as reported as of July 2024.
₳ Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes.
£ Projects refers to the top developments within the Tweed Shire Local Government Area.
µ Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value.
ψ Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRD does not hold any liability to the exact date.
Source: APM Pricefinder, Cordell Connect database, SQM Research, Esri ArcGIS.
Disclaimer: PRD does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRD will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material.
Prepared by PRD Research. © All medians and volumes are calculated by PRD Research. Use with written permission only. All other responsibilities disclaimed. © Copyright PRD 2024.
