Coastal real estate prices soften
A $34,500 drop in the median house price at Ballina and Lennox Head region has resulted in a spike of investment property buying in the area.
A new report released by PRD-nationwide examines Northern NSW areas, including Ballina, Cumbalum, East Ballina, South Ballina, Skennars Head and Lennox Head.
PRDnationwide research analyst Josh Brown said investors capitalising on the recent price correction in those areas had driven a 39 per cent increase in sales activity, taking total sales for the six-month period up to 128.
“Over the most recent period, the Ballina and Lennox Head area registered a 6.6 per cent or $34,500 softening in median price to record $493,500,” Mr Brown said.
Lennox Head was the suburb which registered the most settled transactions over the half-year period, with 41 sales, followed closely by Ballina with 40 sales.
A resale analysis of product sold over this period identifies Lennox Head as the suburb which has out-performed all others in terms ofinvestment performance, with anaverage annual capital growth figure of 8.9 per cent per annum.
Activity in the unit market within the Ballina and Lennox Head area has increased by 18.8 per cent 2009 to register 126 settled transactions.
The research shows an average block of land now costs $265,000 in the region – a 20 per cent drop.