Buyers love Pottsville
UNPRECEDENTED demand for housing under $500,000 has led to more than $2.4 million in land sales at Pottsville Seabreeze Estate in the past six weeks.
Only six of the 16 blocks in Stage 11D remain for sale, with demand coming from first-home buyers who are rushing to sign contracts before the current $21,000 in State and Federal Government grants are scaled back at the end of September.
But, according to agent Lance Cotterill, first-home buyers are not the only ones keen to make the most of low interest rates and government incentives, including stamp duty rebates for all homeowners who build a new home, up to $600,000 in value, before the end of the year.
“The current economic climate has driven the demand for property under $500,000 skyward across the Tweed region,” said North Estate Agents director, Mr Cotterill.
“We are seeing a slight influx of investors now mobbing into the market especially within new house and land developments.
“The dual demand is coming from both first-home buyers and investors, banking on solid returns once the market signals recovery over the next 18 months.
“The Tweed market is still buoyant with some investors realising they can almost positively gear their property, with the rent almost covering their mortgage repayments.
“With low interest rates and market recovery expected, there are many opportunities in the market for investors to receive strong returns.
“In the current market it is best to buy homes that are below the median house price, as these offer the best opportunities to make future gains once the market begins to swing up again.”
House prices in the Pottsville area are growing despite the economic downturn, and a downward trend in other coastal areas, with a recent report by Colliers International showing average prices increased b y 4.3 per cent, from $465,000 to $485,000, from March 2008 to 2009.
Interest from buyers keen to get into the Tweed Coast property market is similar to the boom times of 2006, according to established local agents.
The development's project manager Dale Scotcher said Seabreeze was helping to meet this increased demand for affordable housing.
With land priced from $240,000 and house and land packages priced from $412,000, Mr Scotcher said Seabreeze offered an affordable seachange.
“We expect to see a lot of interest generated from this new land release as people continue to look for value for money in the current market,” Mr Scotcher said.
“We are ensuring our house and land packages are some of the most competitive on offer.”