The market for Coolangatta Tweed Heads area continues to be quite robust predominantly for home units and houses.
In June sales were evenly split by approximately 50% houses and 50% units. Units priced from $265,000 for two bedroom units up to $540,000 for large, well positioned units.
House prices range from $380,000 but the majority ranged between $500,000 to $600,000.
In July the house to unit ratio was on a 60% to 40% basis with sales occurring in the $300,000 to $400,000 range with a waterfront sale over $800,000 occurring. Unit sales were in the mid $300,000 range.
Generally all property priced to the market’s expectations has been turning over within a month to six weeks. The last financial year has seen a lot of investor properties sold off as vendors take advantage of an increased volume of sales in the market. Twelve months ago we had a softening in rental levels, however, with vacancy factors at a low level many landlords have taken the opportunity to increase their rental levels where the situation warrants.
Our property management department constantly reviews rental levels achieved for our investors and make recommendations regarding their investment.
Our advice to landlords is to consider small, incremental, increases over time. This will ensure your property is in line with market rents, and allow your tenant to more easily incorporate an increase into their budget, rather than having a situation where a substantial “catch up” increase is warranted.
Real estate pundits predict this volume market will carry through to early to mid 2016. While there is pressure on prices through increased volume there has not been significant increases in prices that reflect back to 2007-2009 levels.
At the moment we have an urgent need for more property to be listed for sale. Given the run in the market at the moment if you are thinking of selling it would be advisable to speak to one of our sales consultants sooner rather than later.
Interest rates are predicted to stay flat until years end and when the RBA starts to talk rate rises we will get the inevitable “cooling” again.