Positivity for Coffs property
A RAFT of good news on the local property front forecasts a bright future for the Coffs Coast.
Two separate reports have found not only is the Coffs property market performing comparatively well, it’s also tipped to boom in years to come.
An analysis by CoreLogic of where the majority of property sales has taken place over the past 12 months shows the greatest increase in the total value of sales have been located in regional areas.
Coffs Harbour featured in the list of the top 50 council areas across Australia that have recorded the greatest annual increase in the value of sales. Interestingly, only four of the 50 areas listed were in capital cities.
Coffs Harbour came in at number 40 on the list with 1817 sales in the 12 months to March 2016 which was a rise of 9.9%. The total value of the sales was $783,659,900, a rise of $117,766,513 year on year, or 17.7%
Bellingen recorded a 30% increase in sales to be at number 10 on the list, with $150,301,423 in total sales and a 39.5% rise in the value of sales. Nambucca was at number 26 on the list with $124,923,298 worth of sales which represented an increase of 20.2%.
Regional markets in NSW showed the highest levels of demand and value growth of all regional markets across the states and territories.
Another report has named Coffs Harbour as a future growth region for retiring baby boomers.
The report by national property market researcher Proprtyology found millions of baby boomers will flock to regional Australia during the next two decades seeking a cheaper retirement lifestyle.
Poor retirement planning and insufficient superannuation are behind the predicted trend.
“Baby boomers didn’t have their employer contributing towards superannuation until the back end of their working years. So, one way or another, around 90% of this generation will have some reliance on a government-funded pension,” Propertyology market analyst Simon Pressley said.
“Don’t be surprised if tens and possibly hundreds of thousands end up organising a removal truck and relocating to one of the many beautiful parts of regional Australia in search of a sea- or tree-change,” Pressley said.
Mr Pressley said with Australia’s baby boomer population equating to 4.45 million people, even a small portion of people relocating would create significant extra demand for housing in the regions.
“Whether coastal or rural, we believe that the regional cities that will be in highest demand by baby-boomer re-locators will offer a combination of quality lifestyle, good health care, and availability of free-standing houses for less than $400,000.”
Coffs Harbour was among 22 regional locations across Australia the Propertyology identified as being likely to experience strong demand from baby boomers. Other locations in NSW included Port Macquarie, Armidale, Orange, Tamworth, Dubbo and Wagga Wagga.
The report found markets like Coffs Harbour should be in the sights of property investors.
Mr Pressley said the advantages of investing in regional Australia include a smaller capital outlay to get into the market, higher rental yields and lower holding costs.
“When analysed on an average annual capital growth rate over the past 15 years, many regional cities have actually outperformed capital cities,” he said.
“And, with industries like agriculture, tourism and advanced manufacturing very well-positioned to prosper from the Asian Century, it shouldn’t be difficult at all to understand that the investment fundamentals are very sound.”