Lismore, Casino and Kyogle residential markets likely to improve in 2020: HTW residential
The residential market for the 2020 year ahead in the Lismore, Casino and Kyogle area is likely to experience some improvement, continuing on the heels of the last six months of 2019 when sales activity started to show signs of confidence after six months of subdued activity, according to the latest Herron Todd White (HTW) residential report.
The valuation firm asked their values to give an educated outlook on the residential market in their service areas.
"Key factors to potentially influence house prices for 2020 include the projected low interest rate environment which last saw a 0.25 percent cut in October 2019 to an unprecedented low of 0.75 percent Reserve Bank rate, and it appears there possibly may be more cuts!
"However, it will be interesting to see how lenders react in their lending decisions which ultimately impact the success of most first home buyers and investors," the valuation firm said.
Providing that all the lender’s boxes are ticked, the savvy first home buyer and investor could do quite well this year as banks competitively seek their business.
"And yet, we are still stuck with the limited stock available complaint (as oft repeated by local real estate agents)," the valuation firm said.
So whilst the low interest rate environment may be considered conducive to an increase in potential property enquiry, if there is no product available, then competition will ultimately rise for what is available and potentially see prices improve.
"It is interesting to note that in both Casino and Kyogle, there is very limited supply of vacant residential lots available for sale," the valuation firm stated.
This concern has been expressed with the Richmond Valley Council taking the initiative in acquiring one of the very few residential englobo lots available for sale in Casino.
The Council has some good form on this initiative, having recently completed the sale of all available vacant residential lot stock in the Settlers Estate on the eastern fringe of Casino.
"It is expected that due to the limited supply of vacant residential land, demand for such a product is likely to be relatively strong especially since the prices are still considered to be reasonable for flat land.....think sub $150,000," the valuation firm said.
Lismore City is faring rather better with new residential estates coming to fruition such as Hidden Valley Estate and other planned estates at Eastwood in Goonellabah which has already received positive enquiry with approximately 135 new lots to be created.
The market for vacant land has been steady up to this point in the Lismore City area.
The report notes level blocks are expected to continue to remain steady, however more steeply sloping blocks requiring significant foundation works and increased construction costs may require some discounting from developers to shift.
Prices continue to improve to the point where the vast majority of level blocks are now well in excess of $200,000.
"With much of the land in Lismore City becoming available throughout 2020, local builders and project building companies will have plenty on their plates, so much so that we have noted a significant increase in construction costs in 2019 and likely to continue in 2020," the valuation firm said.
However, this does not appear yet to be dissuading owner-occupiers from building.
The demand for rental accommodation in Casino, Kyogle and Lismore City throughout 2020 is likely to remain relatively strong, particularly if first home buyers can not secure finance and therefore need to look for places to rent.
Newcomers to the area have also raised the enquiry level for accommodation.
A one bedroom unit located within walking distance to Lismore CBD has been listed for rent with a price of $240 per week.
Located at 4/9 Jubilee Street (pictured below), the unit features floorboards throughout kitchen and living area, garage and plenty of storage.
Properties north of $550,000 within Lismore City still appear to be in demand for the well-heeled owner-occupier looking to upgrade.
For Casino and Kyogle, residential properties in the $400,000 plus bracket are generally limited in number but tend to sell reasonably swiftly when offered for sale.
A new listing is a Casino three bedroom house priced at $388,000.
The freshly painted house is located at 17 Cumberland Street (pictured below).
Nestled on an 837sqm of land, it features modern kitchen, open plan family and dining area, and covered outdoor entertaining area.
"In summary, Lismore City is a quiet achiever with Casino and Kyogle holding their own.
"Their proximity to some of Australia’s best coastline, a strong employment base from the government, education and rural sectors combined with relative affordability is likely to insulate these areas from significant falls that seem to befall larger, metropolitan areas," the valuation firm stated.
"In a market where the expectation is that improved properties are likely to continue be restricted in supply and coupled with a low interest rate environment, we should see some up-tick in prices across the board."
In short, 2020 is expected to be a year of slightly improved growth for Lismore City, Casino and Kyogle, however the rural lifestyle or rural farmlet sector can expect some hurt, especially if the protracted dry conditions continue.