Coffs Harbour market softens with reduced sales volumes: HTW residential
The Coffs Coast saw a subdued start to 2019 with buyer negativity creeping into the market, according to the latest Herron Todd White (HTW) residential report.
The report suggests that this negativity is a result of a combination of factors including the fallout from the Royal Commission into banking practices and the impact this has had on lending policies and available finance.
There has also been reduced interest from capital city markets, increased APRA lending restrictions for broader investment loans and continuing media reports of declining market conditions in the capital cities.
"The recent state and federal elections which have seen extensive campaigning with regard to property affordability (first home buyers), potential changes to negative gearing and superannuation tax laws, have all combined to put a very negative or uncertain picture in a potential buyer’s mind," HTW said.
"Notwithstanding this, the local market remains generally firm although sale volumes and general activity has softened, " the valuation firm said.
Current anecdotal evidence indicates that although most good quality property types are holding value, there is noticeable buyer resistance for property that is either overpriced, lacking in key features or in a secondary location.
There is still reasonable demand and some continuing increases in value being experienced for entry-level residential product or blue chip areas where supply is low and demand high.
The report notes that the rural residential market is continuing to remain strong with a noticeable increase in activity with short selling periods.
The market most affected by the general softening is the prestige sector ($1 million plus) which is predominantly driven by out of town purchasers.
"There are no real surprises in the market to report so far in 2019," the valuation firm commented.
A recent $1 million plus sale was a waterfront house at Sawtell, a coastal village near Coffs Harbour.
The two level house at 26 Tom Albert Place (pictured above) has been sold for $1,045,000.
Set on an 876 square metre block, it features a formal lounge room, separate open plan living/dining space, three bedrooms, central kitchen and boat access to the water.
A Mediterranean style mansion with ocean and coastal views is on the market with $1,895,000.
Built by one of Coffs Harbour's most respected builders, the home at 111G Sugarmill Road (pictured above) comes with five bedrooms, 4.24 hectares of low maintenance gardens and circular driveway plus formal entrance.