Spotlight On The Market | July 2018
In a different kind of market update, we fly over the demographics for the towns in our local area.
The features of the typical residents in an area will greatly impact the behaviour of the property market and influence demand.
We also see how social forces direct how property markets behave over time, and the composition of communities are in a dynamic relationship with the property market. As urban spaces are adopted and become fashionable, the gentry will become attracted and move in and the area becomes attractive to investors. This process is called gentrification and it often prices local or original residents of an area into new markets.
The people who live in an area will have a strong impact upon the lifestyle that develops there, how resources are allocated in a community and how the market forces that determine property prices will behave.
Who lives in Byron Bay?
What becomes obvious from the data on Byron Bay (as a town rather than a greater region,) is the dramatic increase in price over the previous 5 years. When this is combined with a high demand in current buyer numbers, then the social composition must react and adapt.
When we look at the demographic, we can see that the top 3 categories of residents are all independent, which in older people (in Byron Bay) who can absorb the increasing costs of living in town (possibly because they bought well,) or who have accumulated wealth to invest.
The third most popular category of resident for Byron Bay is younger independent people, who may be establishing themselves and need access to employment opportunities. Independent young people can stretch to the higher accommodation costs because they generally don’t have financial dependents.
The high demand will continue to push prices for the foreseeable future.
Who lives in Suffolk Park?
Suffolk Park, with a slightly lower demand level than Byron Bay, still boasts a healthy 5-year growth trend, but without the extreme market swing over that time. A more stable market, Suffolk Park is an ideal pocket for families who use their principal place of residence as the cornerstone of wealth.
The slightly older demographics, (established and older families,) along with the high median sale and rental price indicates that Suffolk Park might be considered an “upgrade” and is likely a few rungs up the property ladder than most younger families can access.
Who lives in Brunswick Heads?
Based on the statistics, Brunswick Heads looks like a neighbourhood in transition, and possibly about to go through a process of renewal. We see that the existing demographic is largely older families or couples, as well as older independent people.
We also see that the current demand level is ‘Very high’ – meaning that there are many more views per Brunswick Heads property listing than the average for NSW overall.
With the lowest recorded growth rate for the region, Brunswick Heads may represent a bargain for entry level property hunters, a new demographic seeking to move into the area or even investors looking for the next eligible market mover.
Who lives in Mullumbimby?
Mullumbimby is attractive to families in the region who, because of the cost of living and raising children, must look for affordable accommodation. With a median sale price of less than $1M and affordable weekly rent at a median of $550/week, Mullumbimby represents an excellent entry level or lifestyle opportunity for families and those who want to live in the region but who can not afford the more expensive properties in town.
The growth trend is still strong, making the area a sound investment, and it is likely that the demand for property and returns at this end of the market will continue to grow – given the scarcity of affordable accommodation in the region.
Who lives in Lennox Head?
The same folk who live in Brunswick Heads, as the areas promote very similar demographics and growth rates. With sale prices considerably cheaper than Brunswick Heads, and rental returns higher – the market is telling buyers to invest.
It is not surprising that the demand is ‘High’ for property in Lennox Head, it is definitely a market to watch.