Byron prices at record levels amid low stock: HTW

Market conditions throughout the Ballina Shire remained strong throughout 2016 and there are early signs that the market will remain strong into the first quarter of 2017, according to HTW’s February 2017 update.

The valuation firm says price levels across most market segments are at record levels and stock remains low.

“Given that price levels are at record levels any further increases in value would appear unlikely in the short term however low stock levels, particularly throughout the sought after beachside localities may result in some further growth in prices,” the report says.

“The lack of stock and strong demand resulted in the Byron Shire area having tremendous growth in 2016 and it is predicted to remain this way into 2017.

“If interest rates remain low, it will cause demand in the area to become very high, particularly in the coastal resort towns of Lennox and Byron Bay.”

HTW tips the suburbs that are worth watching this year in the Byron Shire to be Ocean Shores, New Brighton and South Golden Beach.

These have had an entry level pricing point of $500,000 to $1 million for a coastal place for many years and are well sought out on the coast due to proximity to Byron.

But the firm is less keen on Mullumbimby, which it says seems to be a particular suburb to treat with caution.

“This is a suburb that has had a very strong price increase in recent years and the worry is that if interest rates rise, it may not be sustainable,” the report says.

“The overall feel for the Byron Shire is that if interest rates and stock levels remain low there will be a strong demand for the area and the markets in Lennox, Byron and Suffolk will have growth, particularly Lennox Head as buyers choose this suburb as a less expensive alternative to Byron Bay.”