Coolangatta and Tweed Heads prices still on the up

Date released: 09/02/2009

Coolangatta and Tweed Heads apartment values have reached new heights, defying the economic turmoil impacting property prices across Australia, new research by Colliers International shows.

Preliminary figures reveal high-rise apartment resales in the two suburbs averaged $768,535 during 2008, up from $747,127 in 2007, and achieved an average capital growth of 7.1% per annum.

The report, compiled by research manager Lynda Campbell, showed three buildings in the area achieved an average resale price of more than $1 million – Niecon’s Reflection on the Sea and Reflection Tower Two in Coolangatta and Lindor on Greenmount Beach.

However, sales numbers plunged, with figures showing just 43 high-rise apartments traded hands during 2008, compared with 106 during 2007.

The research was based on 840 settled apartment resales in 22 high-rise apartment buildings in Coolangatta and Tweed Heads from January 1997 to the end of 2008.

Colliers International director of project marketing Brinton Keath said the research showed how strong the fundamentals of the area were in a quieter market.

“Localities that experienced an increase in values last year only did so due to strong fundamentals and a lack of supply,” he said.

“The majority of new high-rise apartment development in the area is along the beachfront strip, which is one of the factors driving up resale values as the demand for premier positions on the beach remains strong.”

“Billions of dollars is also being poured into major infrastructure improvements in the area, further fueling values growth.”

“Major projects include the $100 million redevelopment of Gold Coast Airport, the $920 million extension of the rail-line south to the airport, which has started with the extension to Varsity Lakes, and the $70 million expansion of Southern Cross University to a site adjoining the airport.”

“These significant projects come on the back of the completion of the $546 million Tugun Bypass, which has slashed travel time to the region, making it much more accessible from the rest of the Gold Coast and Brisbane.”

Mr Keath said the area was becoming increasingly desirable to residents and investors.

“Coolangatta and Tweed Heads have developed a reputation as a more relaxed and affordable alternative to comparable suburbs further up the coastline,” he said.

“All the facilities, including quality restaurants and shops, are on the doorstep, there are fewer crowds and a selection of the Gold Coast’s premier beaches and surf breaks.”

“Sydney investors love Coolangatta because it is so close to the airport, while Brisbane buyers love it because it was such a popular tourist spot during the 1950s to 1970s, so the baby boomers now holiday there with their children.”

“Developers have also recognised the area’s appeal with owner-occupiers and, along with projects targeted at the visitor market, are developing an increasing number of boutique projects designed to meet the residential market.”

“These projects typically achieve higher values and capital growth.”

“Several such projects are underway in the area with Niecon’s Nirvana by the Sea currently under construction at Kirra, Trinity Development Group’s $34 million Apara project planned for Duranbah and Elysee recently completed at Kirra.”

Mr Keath said the report revealed the area remained popular with tourists.

“The research found occupancy rates in Coolangatta remained solid, sitting at about 66.2% during the September 2008 quarter, in-line with the same period during 2007, when 67.9% occupancy was achieved,” he said.

The first high-rise towers were developed in the Coolangatta and Tweed Heads region in the 1980s, with a total of 10 buildings constructed during the decade.

A further three towers were developed during the 1990s and nine have been completed this decade to date, with several more in the pipeline.
 

By Lachlan Hibbert-Wells

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