THE TWEED Shire real estate market has experienced a slight easing in the past quarter but remains one of the strongest areas for both lifestyle and investment opportunities in NSW, as the housing market pendulum swings in favour of buyers.
The Weekly has compiled its exclusive Tweed Shire real estate quarterly report this week with the biggest moves in both the housing and unit markets.
The report has also engaged some of the shire’s hardest working local real estate agents, who have shared their expertise with The Weekly readers.
Unit prices ease Several suburbs experienced a moderate easing across the Tweed over the past quarter with the largest quarterly losses coming from unit prices with Casuarina units down 7.2 per cent, Tweed Heads West down 6.8 per cent and Kingscliff down 5.9 per cent.
Units in Banora Point and Tweed Heads South had the only positive quarterly growth of 1.8 per cent and 1.7 per cent respectively.
There were mixed results for units over the past 12 months with Pottsville and Tweed Heads South making solid gains of 7.5 per cent and 6.7 per cent respectively, while Bogangar slipped down by 4.7 per cent and Tweed Heads West down by 6.8 per cent.
Housing holding strong Houses in most areas have eased over the past quarter with only three suburbs showing large gains include Tweed Heads (7.4 per cent), Stokers Siding (7.2 per cent) and Tweed Heads South (4.3 per cent).
Pottsville had a small gain of 0.7 per cent during the past three months while Tweed Heads West also experienced small gains of 0.6 per cent.
The largest quarterly losses were made at Terranora which dropped 7.6 per cent, Bilambil Heights was down by 3.3 per cent and South Murwillumbah decreased by 1.9 per cent.
Suburbs that performed well over the past 12 months for house prices were Tweed Heads South which showed strong growth of 12.1 per cent, Tweed Heads grew by 9.1 per cent, Kingscliff up 6.5 per cent and Casuarina up by 5 per cent.
Stokers Siding’s median increased from $685,000 to $820,000 but it should be noted there were only 11 sales made in the past year.
The outlook from local agents is optimistic with reports of strong demand from buyers a resilient local market.
First National Murwillumbah Sales Consultant, Paul Stobbie, said the Tweed real estate market remains strong with “very good sales results and strong buyer demand”.
“There seems to have been a resurgence in confidence with investors returning to the market post-election and in light of recently announced interest rate cuts and a loosening of lending criteria from the big banks,” he said.
“Prices remain strong in all sectors of our market despite a national downward trend with lifestyle changers continuing to relocate to the area from the big cities.”
Mr Stobbie said there is strong demand in all sectors of the market. “Lifestyle small rural properties remain popular,” he said.
“Residential town listings in Murwillumbah continue to have very strong interest with a good mix of first home buyers, investors and lifestyle changers vying for property especially in the lower end of the market (sub $500k).”
Mr Stobbie said with the Federal Government election out of the way and more surety now surrounding property investment policy as well as reducing mortgage interest rates and the signalling of more to come, “the outlook is positive for the months ahead”. This definitely is good news for all those in the country and outside looking forward to buying properties with the help of mortgages. However, before investing in any land in a foreign location, the latter might need to consult an Overseas Property Professional & Finance Specialist for getting a fair understanding of the process.
Anyway, he said, “We do tend to have a spike in buyer demand after end of financial year also, so everything is pointing to a continued strong buyer demand”.
“So, if you are thinking of selling the July-September quarter looks very strong indeed and with the superb winter weather here in the Northern Rivers it is a very good time to get a great result.”
DJ Stringer Principal, David Stringer, said the number of sales over the last quarter was down about 25 per cent.
“Which was largely due to a shortage of properties being listed and many buyers and sellers apprehensive about the outcome of the election,” he said.
Mr Stringer said the sorts of properties most sort after including “anything around the beach fringe and local suburban homes (sub $700K)”.
“With the election result pleasing the real estate industry, the outlook is very positive indeed,” he said.
“Buyers are trawling the market and ready to buy now and we simply need more stock to suffice demand.
“Sellers should be joyed with the high level of buyer enquiry and limited competing stock at this time, although setting price to offer value, whilst obtaining an optimum sale price, is the key.”
Elders Tweed Valley Director and Sales Consultant, Craig Dudgeon, said prior to the election first home buyers and investors took a back seat. “They are back and looking for value,” he said.
“The volume of buyers was not there as per previous quarter, however our sales still ticked over surprisingly well.
“Purchasers seem to have their finances sorted and were educated in what represented value.”
Mr Dudgeon said homes with character and period features seem to be in demand and certainly from southern buyers.
“Vacant land is still a standout that buyers are looking for and first-home buyers are trying to find their way into the market with homes $400-450K,” he said.
“I’m really positive that our valley is so sought after, we’ll always weather any uncertainty better than most.
“Byron Shire residents seem to be a majority of our enquires and not Sydney or Melbourne as previous quarters.
“Most sellers ask when the best time is to sell, and my advice is any time. “If your property is well priced and presented well, purchasers respond accordingly.”
Ray White Rural Murwillumbah Residential and Rural Sales Agent Belinda Franks said the Murwillumbah market has fared “quite well compared against the Sydney market (in particular)”.
“In that the price bubble that occurred in that market had deflated to the tune of more than 9 per cent late in the second half of last year,” she said.
“Murwillumbah homes remain more affordable than anywhere within a 30km radius and we have still have a range of different buyers seeking to make Murwillumbah their home or secure an investment property.
“Whilst our market has softened slightly, that adjustment has been driven by the buyers, primarily being more conservative in their assessment of what represents value, as opposed to 18 months ago when the market was being driven by an abundance of buyers active in the market place.
“Lending constraints imposed by the banks have eased somewhat over the last quarter and the benefit of the stamp duty concession for first home buyers has encouraged sales for the lower end price range ($350 – $500k), which is a positive for many of our vendors.”
Ms Franks said during the last quarter she has seen a positive swing back to original homes within the town centre precinct, which represent convenience, sound integrity and original character.
“Renovators are the flavour of choice among many of the younger buyers and investors on a budget, while more mature buyers or couples downsizing often want to consolidate their finances with little or no mortgage and enjoy a comfortable home that offers a convenient low maintenance lifestyle, giving them more financial freedom,” she said.
Ms Franks said the Murwillumbah market will remain stable in terms of values and the activity of the buyers will continue to ebb and flow.
“Properties that are positioned accurately on price from the outset will generally sell quickly (within four weeks) and this will be regarded as the best outcome in a market that is being driven by the buyers, not set by vendors,” she said.
Property value can change based on the condition of the house, which means a house might not actually sell at the market rate if it has a lot of damage. However, the variation in the value can be rectified by doing some basic repairs around the property and staging it properly.
There are various methods of financing that homeowners can use to make their properties look more appealing. One option is to use an equity release loan for some cash that can be used for home repairs. Along with that, they may need to consider all aspects of the home when renovating. Not only should they consider the repairs needed to increase the aesthetic appeal of the home, such as painting, landscaping, and remodeling, but they may also consider the structural integrity of the home and any potential maintenance issues that may need to be addressed.
For instance, while focusing on exterior staging, if the house has a broken window, perhaps the owners can contact a professional window replacement company for affordable repair and restoration services. Similar services could be hired for other renovations to improve the interior of the residence. This can, in turn, increase the property value and can fetch you a good house selling price.
Villa & Beach – Real Estate founder, Matt Nielsen, said the Tweed Coast market has been in a fortunate position of diminished supply and increasing demand.
“In any market place you will see contradictory data; the region’s days on market are lengthening and transaction numbers are down for the quarter and some discounting is evident in the market place, however the data is an indicator of market appraisals and agent strategy and not of true market fundamentals,” he said.
“What the data cannot represent well is market sentiment and in our opinion is what truly drives a market place.”
Mr Nielsen said most buyer enquiries are from interstate being Sydney, Brisbane then followed by the Gold Coast and Melbourne.
“We specialise in Kingscliff / Casuarina, with the area’s beauty, community feel and lifestyle being major drawcards for those wanting to regain a balance in their lives,” he said.
Mr Nielsen’s outlook for the next quarter is for the market to remain steady.
“Property prices in the region have grown considerably and in many markets this would be considered growth bought forward, however the Tweed Coast market (since 2012) has been steadily rising from a very low base, where we considered ourselves an undervalued market,” he said.
“We have matured, as a community and with infrastructure; and are in a phase of equilibrium now.
“When you look at the whole package the Tweed offers; this coast has it all and migration both interstate and local is expected to continue. Affordability is an issue.
“Kings Forest, a new master planned development on the doorstep is unlikely to resolve issues with supply and demand in the short term.
“Land will simply not come to market quick enough.”
