Byron Bay retail picks up: HTW
The far north coast of New South Wales has seen strong demand for properties with a strong tenant profile at the mid to upper levels of the market.
The lower end of the market has seen increased interest from owner occupiers which reduces the need for a strong tenant profile, according to valuers Herron Todd White.
The most significant change was noted along the coastal strip with the stand out performer being Byron Bay.
"The rest of the coastal strip has also performed well," the report noted.
Inland, retail areas have also seen growth albeit more modest.
Coastal localities have seen growth as a result of increasing rents and strengthening yields, while inland localities have tended to have little movement in rents and growth as a result of slightly stronger yields (driven by owner occupier.)
The sales evidence falls broadly within the following ranges:
Non-coastal locations have had relatively stable rents over the past two years. Retail has been adversely affected in Lismore as a result of the March 2017 flood with increased vacancies.
Rents have held but there is a risk of a downturn.
Coastal localities have been predominantly stable with the exception of Byron Bay, with strong demand, limited supply, upward pressure on rents, and reported incidences of key money.
A strata shop located in the heart of the Lismore CBD has been listed for sale recently with $275,000 hopes (pictured below).
Situated at 154 Molesworth Street, the three suites comprising of 76 square metres.
The floor area is 76 square metre.
The rental evidence falls broadly within the following ranges:
A Lismore retail space in the middle of Moleswoth St between Woodlark and Magellan Sts currently on the rental market is priced at $4,800 per month plus GST.
Great exposure to vehicle and pedestrian traffic, the 100 Molesworth Street property comes with 108 square metres of retail (which could be extended) plus 78.5 square metres of office/storage space.
There is also a loft of approximately 20 square metres, rear lane access and two allocated car spaces.
"Traditionally, the market in northern New South Wales has followed the trend of Sydney to a certain extent with a time lag.
"Sydney and Melbourne’s markets have exhibited softening in demand and uncertainty in relation to value," it noted adding the New South Wales far north coast was a great place to live (good weather, strong tourist destination, solid and stable economy). The increasing population will assist in maintaining strong growth and increased market depth.
"The growth in residential supply will help to underpin local industries.
"Funds are being invested in infrastructure and facilities.
"Owner occupiers and more investors are trying to secure premises to operate businesses at low-interest rates."
