Coolangatta and Tweed Heads apartment values reached new heights in 2008, defying the downward pressure on property prices across Australia, new research by Colliers International has revealed.
Preliminary figures show 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 percent per annum.
Three buildings in the area achieved an average resale price of more than $1million – those being Niecon’s Reflection on the Sea and Reflection Tower Two in Coolangatta and Lindor on Greemount Beach.
Colliers International director of project marketing Brinton Keath said “Localities that experienced an increase in values last year only did so due to strong fundamentals and a lack of supply. The majority of new high-rise apartment delveopment 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 remain strong. Billions of dollars is also being poured into major infrastructure improvments in the area, further fuelling 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 Varisity Lakes and the $70 million expansion of Southern Cross University to a site adjoining the airport” Mr Keath said “The area was becoming increasingly desirable to residents and investors. “Coolangatta and Tweed Heads have developed a reputation as more relaxed and affordable alternatives to comparable suburbs further up the coastline.
All the facilities including quality restaurants and shops are on the doorstep, there are fewer crowds and there is 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 1950′s – 1970′s so the baby boomers now holiday there with their children.
Developers have also recognised the areas’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. Mr Keath said ” The report revealed that the area remained popular with tourists”.
Coolangatta remained solid, sitting at about 66.2 per cent for the September quarter inline with the same period in 2007 when 67.9 per cent was achieved.
Report complied by Research Manager