Economic refugees fuel Tweed property boom
ECONOMIC refugees from hyper-expensive southern capitals are helping fuel the Tweed's real estate market.
According to property data group RP Data, house values in the Richmond-Tweed region increased by about $1000 a week or 11.5 per cent to $563,110 in the year to November, while unit values increased by 7.1 per cent to $413,992 over the year to December.
In dollar terms this is an increase of around $58,000 for houses and $28,000 for units.
DJ Stringer Real Estate principal David Stringer said the area was benefiting from people fleeing the nation's eastern states' capitals.
"It's a very, very strong market and sellers are getting record prices while rents are increasing as well which is bringing investors back into the fold,” he said.
"We are getting heaps of money coming out of Melbourne, Sydney and Brisbane and we are getting an influx of people as well.
"And with investors, first home owners and seniors, we've got a whole chain of different demographics in a small area.”
Mr Stringer said the southern Gold Coast and Tweed was still much more affordable than suburbs such as Broadbeach.
"As far as employment goes with the infrastructure being built on the Gold Coast, people coming to the area are finding work.”
The economic news was similarly rosy north of the border with the data showing that while the Gold Coast recorded the largest fall in the number of properties sold in Queensland, with sales volumes down 11.4 per cent, it was one of just two regions to record increases in both unit and house values.
According to REIQ Gold Coast president Andrew Henderson, the Gold Coast will continue to see strong real estate sales activity in the future thanks to the amount of infrastructure being built in the region.
"The Games are not the biggest thing on the Gold Coast's economic horizon, it's the infrastructure that is being built around it,” he said.
"Sunland's Lakes project, Westfield's Coomera Town Centre and the Jewell project in Surfers Paradise are all billion-dollar projects while you have other smaller developments like a hotel at the Gold Coast Airport set to proceed.
"That infrastructure that will continue to be developed in the next two years will help to create work.”
Mr Henderson said the amount of money being invested in those projects made the spend on venues for the Commonwealth Games look small.
"These are big projects with big spends and they are quality products with big companies behind them,” he said.
"Long term that means good sustainable dollars being invested that create extra jobs on their own.”
Mr Henderson tipped suburbs that were developed in the 1970s-80s as places that benefit from the growth in property prices.
"Places like Mermaid Waters where you have good sized blocks with houses that are ripe for renovation,” he said.
"In Ashmore there are houses on 600sqm-800sqm blocks that are still affordable.”