Huge investment in public and private sector funded projects is driving growth and renewed developer focus on the Tweed Coast in far north NSW.
And with the region’s revival in full swing, fund manager Clarence Property has made its move to capitalise on the treasure hunt for developable sites.
After a number of “approaches” from Sydney and Melbourne developers, it has put the last remaining development sites in the oceanfront enclave of Casuarina Beach on the block.
Based on the most recent deals in the tightly held coastal strip, it is expected the divestment of the five lots—totalling almost 1ha—will deliver a windfall of well in excess of $20 million.
“The beachfront market up and down the coast seems to be pretty resilient,” Clarence Property managing director Peter Fahey said.
“But while the market at the top end is still strong there’s a scarcity issue.
“And we’ve been getting a fair few approaches, mostly from high-end residential developers.”
So the timing just seemed right to wind up its lucrative decade-long syndicate play and sell off the 9663sq m balance of its Casuarina Beach holding, he said.
Brisbane-based Azure Development Group settled an almost $21 million deal for a 7354sq m parcel within the town centre in March last year. Also, a few months earlier, a joint venture between Holm Developments and DeMartini Fletcher Property Development secured a neighbouring 4083sq m site for $8.69 million.
Fahey said the Tweed region had “its own head of steam” with a $1-billion injection of major infrastructure investment that was driving “big demand” for end-product.
The new $723 million, 430-bed Tweed Valley Hospital development at nearby Cudgen is scheduled to open in early 2024 and the Gold Coast Airport—just across the Queensland-NSW border at Coolangatta—has undergone a $260-million terminal expansion.
Fahey said both projects were having a major impact, strengthening demand for development sites and housing in the Tweed.
“The airport, in particular, is not to be underestimated for its influence … it’s a major talking point with buyers, quick access to the airport,” he said.
As well, concept plans were recently unveiled for the staged $900-million transformation of the Tweed Shopping Mall by fund manager Elanor Investors Group. It comprises 13 new buildings of up to 15 storeys, including more than 1400 townhouses and apartments.
Clarence Property is offloading the balance of its Casuarina Beach holding via an expressions-of-interest campaign led by CBRE’s Mark Witheriff and Daniel Doran and Colliers’ Brendan Hogan and Steven King.
The lots range from 1283sq m to 2482sq m and are being offered individually or in one line.
Witheriff said strong interest was expected from residential and mixed-use developers with the sites allowing for a mix of three and four-storey developments.
“The approved Casuarina Beach Town Centre plan permits a broad range of uses including shoptop housing with ground-level commercial, medical and retail spaces fronting Grand Parade as well as three-storey residential-only boutique apartments,” he said.
Hogan said: “The region is playing host to a massive amount of investment which is underpinning strong population growth and sustained long-term growth in property values.”
Casuarina Beach was developed by Consolidated Properties but in 2012 Clarence Property swooped on the remaining 21ha of land in the masterplanned community in a $6.1-million deal at what Fahey described as “the lowest ebb of the post-GFC market”.
