Houses more popular than units
AN investigation by PRD Nationwide's Property Watch into the historic and current market trends of the Tweed coast, has revealed that during the six months to April, the property market registered a total of 102 transactions, one sale more than the 101 transactions registered for the unit market.
The coast encompasses Fingal Head, Chinderah, Kingscliff, Cudgen, Bogangar (Cabarita Beach), Hastings Point and Pottsville.
"This represents only the second time in over a decade where demand for house stock has surpassed what has predominately been a unit market, fuelled by a mix of investors, downsizers and sea-changers," according to the report.
"The vacant land market has regained traction during the six months to April 2012, registering a total of 63 transactions on the back of new stage releases from a number of established projects on the north coast."
According to the investigation, the availability of more affordable stock in the land market has possibly been the catalyst for the uplift in activity from the performances recorded during 2011.
The report suggests a combination of substantial land releases and further price corrections will be necessary in order for sales performances in the area to recover to levels recorded prior to the economic downturn in 2008.
"The resilience of the Tweed coast area property market during the six months to April 2012 suggests that vendors are continuing to revise prices in order to meet the market," the report said.
"Increased mortgage affordability resulting from consecutive interest rate cuts since November 2011 (currently on hold at 3.5 per cent) also appears to have made a positive impact to impeding a further decline in activity, as lenders continue to pass on these rate cuts (mostly in part) and develop more flexible, better value mortgage products."