Tweed Coast fringes attracting buyers as beachside property prices spike: HTW
The fringe areas of Queensland's Tweed were discussed by valuation firm Herron Todd White in their April property clock -- a simple broad brush means to suggest where property prices are and where they are headed.
The fringe suburban areas at the southern extremity of the Gold Coast and Tweed are the inland locations of Bilambil Heights, Chinderah, Cudgen, Tumbulgum and beach side towns of Pottsville, Cabarita and Bogangar.
Within Bilambil Heights , the average range in selling prices for units in the past six months is between $325,000 and $400,000. Weekly rents range between $300 and $425. Gross yields generally range between 5 percent and 6 percent. The average range in selling prices for houses sits between $400,000 and $550,000 with gross yields generally ranging between 4.5 percent and 5.5 percent.
At Chinderah, Cudgen and Tumbulgum, the average range in selling prices for units in the past six months is between $200,000 and $300,000. Weekly rents range between $225 and $350. The range in selling prices for houses is between $325,000 and $550,000 with rents between $350 and $550 per week, with an example of gross yields of circa 4.75 percent to 6 percent.
The beachside townships of Pottsville, Cabarita and Bogangar have unit sales within the past six to eight month from as low as $250,000 up to $450,000 generating gross yields of up to 5.5 percent. The houses appear a better investment as they have no body corporate fees. Sales between $450,000 and $625,000 generate rents between $475 and $600 per week reflecting gross yields of up to 5.5 percent.
Sales activity and prices have improved within the beachside, sought after Tweed Coast locations, making it more difficult for buyers as stock levels have tightened. Accordingly, some buyers are opting to purchase better properties in fringe localities which provide more property for their money.
History has however generally shown that it is wiser to invest in property in localities closer to the coastline and urban amenities. Although, based on affordability restraints, some buyers can only afford to purchase in fringe areas which have lesser capital growth in comparison to ‘in demand’ localities.
Property Observer looked up some recent sales in the fringes of Tweed on www.realestate.com.au around the average range for some of the mentioned suburbs.
1. A two-bedroom house at 82 Wommin Bay Road, Chinderah sold for $385,000.
2. A three-bedroom duplex at 1/43 Newcastle Drive Pottsville traded for $420,000.
