iPlan - a NSW Government initiative coordinated by
Department of Planning

1.6 Property Market Characteristics

1.6.1 Recent Trends

The Tweed Coast has traditionally been seen as the poorer cousin of the Queensland Gold Coast. Lower sales, rental prices and even budget holiday accommodation have characterised the area for decades. However, there has always been a demand for property in the Tweed area by investors, owner occupiers and those renting homes.

Recent years have seen the gap between prices in the north and south decrease dramatically and indications are that this trend will continue due to the unique nature of the area, the limited supply of land (especially in the Central Tweed) and the revitalisation of Griffith Street, Coolangatta. Prices are now rising in line with the Gold Coast and the obvious potential for redevelopment offers opportunity for viable return on investments in the area.

It is also expected that rising sales prices will pull rental prices above the levels which properties within the town centre area currently achieve.

1.6.2 Residential Market Demand

Reasons For Living in The Area

The principal sources of appeal in the area are:

• Natural beauty of the Tweed - beaches, river and convenience to the hinterland
• Restaurants and facilities of Griffith Street, Coolangatta
• Clubs and shopping
• Convenience to all facilities for elderly
• Relaxed atmosphere
• Ability to enjoy the Gold Coast lifestyle without moving out of NSW
• Alternative to high-rise living and the "concrete jungle" of Surfers Paradise

Market Segments Seeking Accomodation

There is substantial demand from investors, owner occupiers and renters for properties in the Tweed Heads area. Existing demand comes primarily from retirees - in part because much of the available accommodation is targeted to this market segment. However, significant demand is also being generated from other market segments. These include:

• Baby Boomers/Empty Nesters (late 40's to late 50's) as owner occupiers. The majority of this market is currently coming from Sydney and Melbourne. Locals are also following this trend once their children have moved out of home.
• Young adults 18 - 35. Although prices generally prohibit this market from purchasing there is a strong demand for rentals in the lower price range of $160 - $240 per week.
• Young families. Most demand from young families is for areas such as Pigabeen to the west and Chinderah to the south due to availability of land, block size and the availability of larger traditional homes.
• Local Workers. A mixture of hospitality employees, commercial / office workers and hospital staff are always looking for accommodation closer to their workplaces. The overwhelming majority of the town centre precinct's workers live outside the precinct.
• Students studying at the Southern Cross University also search for rentals within the area, however, the limited supply of lower price rental accomodation and the short-term accommodation requirements restricts the potential for students to live within the area.

Rentals

Rental prices within the Tweed have historically been lower than the Gold Coast average, however recent trends have seen prices for rentals increase and the gap between rental prices in these two areas decrease.

• Demand for rentals is still strong due to the generally lower prices asked for the majority of properties.
• One real estate agent noted that up to 60 - 70 people a day were retrieving rental sheets from their office in Coolangatta with their Tugun office averaging almost double this number of enquiries.

Supply

• Supply in the town centre area is low as the area is a relatively small and available properties are limited in number.
• Rentals in the lower end of the market (ranging from $160-$240) are in fairly low supply and do not last long on the real estate agents' lists - there is a constant turnover of properties in this lower price range.
• The majority of properties are above this lower price range. Thus, younger markets tend to find accommodation in other locations such as Kirra, Bilinga and Tugun.

Market Segments

• There is substantial latent demand by a variety of market segments.
• The majority of interest is from older couples
• Retirees see the area as convenient and the existing infrastructure currently caters to their needs.
• Some baby boomers are moving to the area due to the location, preference for units and the lifestyle in the area.
• Hospitality workers of the Tweed and Coolangatta areas are searching for accommodation close to their workplaces.
• Higher priced properties are sought after by local professional workers and their families.
• Overseas students often live with their families whilst studying at the Southern Cross University and are looking for quality properties to rent.
• Overseas visitors looking to buy are also renting in the Tweed area so they can understand the local market and decide where it is they wish to invest and live.

Sales

Limits to the supply of dwellings typically sought after within the town centre area and the short time which they are on the market has seen an increase in the value of town centre property over recent years. The sales market for the Tweed Heads Town Centre is summarised below.

Demand/Supply

• The vast majority of properties in the Tweed central area are units.
• 2 bedroom and 3 bedroom units make up the majority.
• Agents note that the lack of supply in the central Tweed area has forced prices to rise and has also forced those seeking properties in the lower price ranges into alternate areas.
• Hospital staff primarily live outside of the town centre precinct, with many residing in Palm Beach, Tugun, Kingscliff and Currumbin.

Prices

• Prices in the town centre are below comparable areas in Coolangatta.
• Within the town centre prices range from $240,000 to $600,000, depending upon the size, quality, number of bedrooms and facilities. This range reflects properties currently listed on local Tweed and Coolangatta real estate agents' books.
• Prices are around the $330,000 to the mid $400,000 mark for 2 bedroom units. Some of these properties are approximately 20 years old.
• Newer 2 bedroom units are around the $450,000 price range.
• Larger new units with security, larger living areas, larger balconies and facilities such as lifts are in high demand and can reach over $500,000 for 3 and 4 bedrooms depending on their quality and points of differentiation.