Clarence Valley - a safe haven from a downturn in the market: HTW residential
COVID in the Clarence Valley is not having much impact as auctions, borders have been opened up allowing people to travel to the Valley more easily, according to the August Herron Todd White (HTW) residential report.
The valuation firm presented an 'investor playbook' of real estate performance within each service area this month.
The report suggests investors see the Clarence Valley as a safe haven from a downturn in the market due to broader economic conditions.
"Cashed up buyers are spending above $1 million on canal or Yamba Hill properties to be used as holiday homes or as longer term rentals.
"Investors also are seeking rural residential properties to get out of the city life due to the Coronavirus impact in the cities restricting movement of people," the valuation firm said.
Investors are mainly from the Gold Coast/ Brisbane and Sydney areas.
The Valley is typically cheaper than Ballina to the north and Coffs Harbour to the south. the Clarence also is benefitting from Government spending on a M1 Motorway upgrade and a new large Jail in the region, the report noted.
In Grafton, rental return net is expected to be around five per cent although in Yamba on the coast capital gain recently has been and strong 6.1 per cent per annum (realestate. com). Agents are reporting a lack of stock and good buyer enquiry.
"In the future the Clarence Valley will benefit from the M1 Motorway joining Ballina to Coffs Harbour reducing travel time also to the Gold Coast and Brisbane to two hours approximately and the new Jail creating jobs.
"However, the risk is the broader economy in Australia and the world with a rise of these threats," the valuation firm said.
First home buyers are able to apply for discounted mortgage rates, stamp duty rebates, and renovation/construction incentives which may help fuel this part of the market in the near future.
A three bedroom house on a 2,203sqm block in Grafton has recently been sold for $420,000.
The 39 Breimba Street home (pictured below) comes with three bedrooms, separate lounge, large kitchen and enclosed veranda.
The property was last sold in 2017 for $315,000.
A current listing is a South Grafton cottage priced at $279,000.
The three bedroom, one bathroom home is situated at 9 Gillett Street (pictured below).
Set on a 555sqm block, the house features open plan kitchen/living area, timber back deck, swimming pool and lock up garage.
A rental return of $350 - $360 is estimated for this property in the current rental market, according to Elders Grafton property management team.
