Valuation firm Herron Todd White and Property Observer, the online property industry newsletter, did a report on Mullumbimby in May.
It said that even though traditional places like Ballina and Byron Bay are still in demand, previously overlooked towns like Mullumbimby are now in the highest demand. Prospective buyers are operating in a heated market and are prepared to overlook negative attributes.
The report advised the demand in Mullumbimby was being fueled by interstate buyers looking to find alternatives to the more expensive resort towns of Brunswick Heads and Byron Bay.
“The average house price point for the particular suburb of Mullumbimby ranges between $750,000 and $1 million,” the report advised.
“The product at this price point is varied between either an older style dwelling or newer product. The older dwellings comprise single level houses built about the 1950s located in the flat part of Mullumbimby close to the local township.”
The report went on to question the sustainability of the recent price rises in Mullumbimby if there is either a decrease in demand or an increase in stock.
“With significant increases in values over the past 24 months any increase in stock or reduction in demand will likely see a reduction in value,” the report stated.
Mullumbimby appears to be the most desired location at present, while demand for lower priced units in the Ballina area is strong, whilst the $1 million plus market in coastal areas such as Lennox Head and East Ballina continues to perform well.
It used two recent listings as examples:
A four-bedroom house at 2 Palm Avenue listed for $989,000. And a five-bedroom house at 871 Main Arm Road listed for $845,000.
“If interest rates remain low and the demand for these particular houses remains high, the current sustainability of these houses to the market place will remain unchanged,” the report said.
“People tend to be paying a significant premium for a renovated or revamped classic product in this suburb. There is both opportunity for renovation in Mullumbimby and for purchase of properties that have already had renovations done.”