By Jonathon Howard (Printed Thursday, September 20)
TWEED REAL estate continues to boom in 2018 with record growth, according to the latest house prices from CoreLogic, and predictions from local real estate agents that it’s unlikely to slow down in the next five to seven years.
The announcement of the Tweed Valley Hospital at Cudgen may have also spurred on house prices with Casuarina houses rising by $80,000 since the hospital announcement in April 2018 and Kingscliff increasing by $68,000. In part, this announcement could be made due to the fast approval for the commercial building development. Perhaps the process was expedited by professionals from firms similar to CIVAC who can help in handling land acquisitions and approvals.
Anyway, all coastal suburbs have experienced high growth during the past three years, with Casuarina’s median house price topping the million-dollar mark in July to $1.03 million, the first to do so in the shire’s history. It seems that the house has been renovated keeping in mind the latest trends in the real estate market. Moreover, a look at the house can reveal that good preparation and a clean, solid base were used to make the painting on the exteriors of the house look more refined (go through this article to learn how it can be done). The interiors are no less beautiful– they appear to be finely decorated with modern-day amenities and fixtures. Hence, it can be understood why the price is so high.
Over the past three years Casuarina median house prices have rose by $269,000 (35 per cent), Pottsville recorded the highest percentage increase of 42 per cent ($210,000), Bogangar increased by $199,000 (38 per cent) and Kingscliff by $208,000 (29 per cent).
Growth in unit prices was substantially higher in most coastal suburbs with the median unit price increasing over the past three years by $178,000 (59 per cent) in Casuarina, Bogangar also increased by 59 per cent ($202,000), while Kingscliff units gained $138,000 (36 per cent) and Pottsville $92,000 (24 per cent).
A drop in the number of properties selling has been observed over the past three years with Bogangar selling 41 homes and 25 units in the past year, compared to a total of 92 the previous year, Pottsville house sales decreased from 141 to 127 and units from 80 to 68 in the past year while Kingscliff decreased from 310 sales in 2016 to 263 sales in the past year.
Casuarina was the exception with a three year high of 91 units and 61 houses sold in the year to May 2018.
Murwillumbah property prices have experienced significant growth in the past three years up 31 per cent or $114,000 since August 2015 and at the current rate of growth could top the half a million-dollar mark by the end of the year.
Murwillumbah houses have had a steady growth of 31 per cent or $114,000 in the past three years.
Units have been up and down and only a small number of sales each year across Murwillumbah.
The number of sales has remained relatively steady over the past three years, with the same number sold in the year to August 2015 and a peak of 170 in the 12 months to April 2017.
South Murwillumbah’s median price was $385,000 one year ago and is now hovering around $425,000 and increased by 113,000 in three years.
Tyalgum has seen one of the steepest median house price increases in the valley from $352,000 in August 2016 to today’s median price of $508,000, but only 12 to 20 properties are sold in a year.
Stokers Siding has seen steady growth with 18 properties sold in the past year and a current median house price of around $705,000.
The Weekly put several questions to local real estate agents from both the Tweed Coast and Tweed Valley to get their thoughts on the shire’s housing market including whether they believe the current rate of growth will continue.
First National Murwillumbah Real Estate Agent Paul Stobbie said the Tweed market remains steady and relatively protected from any sudden or sharp price declines, especially due to a decrease in the number of properties for sale.
“This is due to the fact that it is still the most affordable area in the Northern Rivers and whilst enjoying good price growth over the last couple of years, it did not see the sharp increases that areas such as Sydney or even Byron saw leaving them more open to a large correction,” Mr Stobbie said.
“Stock levels in all sectors have been lower than usual over the last few quarters which again is protecting price point somewhat due to less competition in the market place.”
Mr Stobbie said many Tweed Valley buyers are coming from the major centres of Melbourne, Sydney, Brisbane and the Gold Coast looking for a tree change on a small acreage away from the hustle and bustle of city life.
“Whilst still being close to great infrastructure and the many natural wonders we are blessed with here in the Northern Rivers,” Mr Stobbie said.
“We are also seeing a steady stream of buyers coming from the Byron area after being price-squeezed out of the market down there which is keeping our pricing at a steady level.
“Small lifestyle acreage properties are most in demand with many tree-changers and retirees looking for a change out of the cities.”
Mr Stobbie said Tweed Valley properties are mostly being sold to owner-occupiers and there has been a drop in the number of investors, as seen across the country with the banks tightening their lending criteria.
“Predominantly we are dealing with owner-occupiers,” he said.
“Investors have certainly dropped off a bit with the banks being tighter on lending policy especially in that sector.”
DJ Stringer Principal David Stringer said enquires were running hot for coastal properties and is expecting continued growth for the next five to seven years.
“Yes, the enquiries for those areas (Kingscliff and Casuarina) have increased considerably and we have no doubt that prices will rise on the back of such strong demand for at least the next five to seven years,” he said.
Mr Stringer said beachfront properties of all calibres and family homes up to $650,000 were the most in demand and that rental properties are also in hot demand.
“The rents have steadily increased and in popular areas close to beaches and major amenities have increased by up to 25 per cent,” he said.
“The demand for rental accommodation is always in demand.
“As property prices go up and interest rates increase, the affordability for many to purchase is out of reach. Executive and family homes are in hot demand.”
Mr Stringer said he has not seen a slowing in the number of sales but instead the time of properties on the market is slightly increasing.
In relation to recent shifts in housing prices such as in Sydney, Mr Stringer said he believes the Tweed is more insulated from declines.
“Yes, we are a bit more insulated to those capital city areas,” he said.
“First and foremost, we offer a formidable and affordable lifestyle and property prices are still well below most other cities.”
Professionals Tweed Coolangatta Licensee Christian Petersen commented in relation to the hospital announcement but said it may be too early to determine a correlation in growth.
“Kingscliff is a very popular area to live, I believe the hospital will help to increase house prices in that area, I think it is too early to comment on growth due to the plans of the new hospital,” he said.
Mr Peterson said he has noticed a drop in the number of sales and attributes this to a reduction in the number of properties for sale.
“I would say that the number of sales in the area has decreased because there simply isn’t enough properties being listed for sale, there is still buyer demand,” he said.
“Whilst stock levels remain low, prices should remain stable.
“It is all about supply and demand and we have seen a shortage of supply for some time now.
“I have found houses between $550,000 to $750,000 have the highest demand.”
Elders Tweed Valley Principal Sally Mitchell said in the past month enquiries have increased.
“Properties that have been sitting on the market for a few months are now selling,” she said.
“This is a general trend as the weather warms up.”
Ms Mitchell said many of the enquiries lately have been on properties over an acre
“A lot of coastal families are looking in land for a tree change and to create a relaxed, country lifestyle,” she said.
“Our area has seen huge growth over the last few years but I think prices will stay steady at this stage.”
