Written by Michael Murray
Byron Bay had a very strong twelve months to June 2015. Property research company, RP Data, say the median stand-alone house price increase for the year was 21.6%. Suffolk Park increased 17.3%. Sydney had a median price rise of 22.9% for the same 12 months. Byron and Sydney out in front with lots of daylight between the rest (Melbourne 10.3%).
Lets have a look at our other towns. Also in the top 5 are: Brunswick Heads gaining 8.4%, Ewingsdale 8.3% and South Golden Beach at 7.0%. I expect the Byron CBD still has more steam in it as long as the demand from the sea-changers continues. I do not see that diminishing in the short term. Couple that with very little stock available and there will probably be more growth ahead but I doubt if it will sustain that same rate. Already I think it is levelling off, at least for the holiday season. Investors may not return to Byron as quickly but sea changers cashing out of the city will still be buying.
Higher prices spell a reduction in the rental yield. There can be no more growth in rental return as they are already excessive. I know that many businesses cannot find staff – you cannot live here and pay rent and come out with nothing. South Golden Beach had the best rental return of ythe year at 5.4%. Brunswick Heads has 4.9% while Suffolk Park, Ocean Shores and Mullumbimby all have a return of 4.8%. Due to this recent price growth, I would expect Byron Bay is nowhere near the top 5 and may be closer to a 3% yeild.
Many investor buyers are turning to regional areas. Dubbo has been a star regional performer with 4-5% price rises but also rising rental returns of between 7-17%. With a $230,000 median house price this is attractive. Lismore and Tweed Heads are also listed in top picks for growth. I attended an auction for a client in Ballina on the weekend which went way above the reserve. All the agents involved stated they have never seen it this strong.
Photo Credit: The Byron photo above is frome Jeff Dawson’s website. As you can see it still has the logo on it so I have ripped it off. Jeff Dawson is the Echo photographer and his “Off My Facebook” image gallery is very entertaining. If you like the pics please buy them and not rip him off the way I so blatantly did. Thanks Jeff!
