High yields, low supply: Tallebudgera’s market heats up for investors
Tallebudgera has emerged as a strong investment prospect, with strong yields, limited supply and rising demand in a tightly held, high-end suburb known for land and lifestyle.
Tallebudgera’s property market continues to strengthen, recording a median house price of $1.8 million in the December quarter of 2024, marking an annual growth of 9.0 per cent.
While house sales in Tallebudgera declined by 4.0 per cent year on year to just 24 transactions in Q4 2024, the limited number of listings highlights a highly competitive and undersupplied market.
Despite a slight quarterly decline of 2.7 per cent in the median house price, PRD’s Q1 2025 Property Market Update showed that demand is outpacing supply, creating a competitive environment for buyers.
“With all of this on offer, we have an increase in demand for property in the area but not enough stock,” PRD chief economist Dr Diaswati Mardiasmo said.
Mardiasmo further emphasised that Tallebudgera’s appeal lies in its unique positioning and lifestyle offerings.
“The houses are quite magnificent – larger blocks with all the bells and whistles. It’s somewhat secluded but still close to the beach, just behind Burleigh Heads, so residents can enjoy everything Burleigh Heads and Palm Beach have to offer,” she said.
“There’s minimal infrastructure and industrial development – mostly residential – so buying in the area really gives you that secluded, suburban living feel, away from the hustle and bustle.”
However, Mardiasmo acknowledged that the suburb remains largely out of reach for first home buyers.
“Tallebudgera is a premium market on the Gold Coast, with a median house price of $1.8 million in the December quarter of 2024,” she said.
“This figure is well above the current Qld property price cap of $700,000, meaning first home buyers would not qualify for federal government grants or schemes.”
Despite the high price point, Mardiasmo noted Tallebudgera’s enduring appeal to discerning buyers, particularly families and lifestyle-driven purchasers.
“Most properties in the area are owner-occupied, especially by families and those in their 50s or retirees seeking larger blocks, more land and a quieter lifestyle,” she said.
“For the same price in Palm Beach or Burleigh Heads, you don’t get as much land. Tallebudgera offers the best of both bush and beach living.”
From an investment standpoint, Mardiasmo highlighted the suburb’s strong fundamentals, underpinned by robust rental yields.
“Tallebudgera’s rental yield stood at 4.3 per cent as of December 2024, outperforming the broader Gold Coast’s 3.4 per cent,” she said.
John Fischer, principal and sales specialist at PRD Real Estate Burleigh Heads and Tallebudgera, pointed out that the suburb’s 2.2 per cent vacancy rate remains below the Real Estate Institute of Australia’s healthy benchmark of 3.0 per cent.
“This creates a sustainable environment for investors seeking stable rental returns, even with the higher median house price in Q4 2024,” he said.
The property market update also revealed that no stand-alone houses are scheduled for construction in 2025.
Surrounding suburbs such as Miami and Burleigh Waters are primarily delivering apartments or townhouses, ensuring Tallebudgera’s secluded character is preserved.
“Currently, there are no residential projects planned specifically for Tallebudgera, which means there are no new houses in the area,” Mardiasmo said.
She added that the suburb’s future appears promising but remains constrained by limited supply.
“With ongoing undersupply and potential future cash rate cuts making premium properties more attainable, the Tallebudgera market is likely to continue growing, with prices rising further,” she said.
“Many properties have been held by families for generations, and with no new houses planned for 2025, the value of existing homes is well preserved,” she added.