Predictions that coastal properties had their moment in the sun during the Covid-related property boom, and would experience price drops, appear to hold absolutely no water.
New research has found that a third of Australia’s entire coastal property market has held on price, despite the 18-month period of interest rate rises designed to bring down Australia’s peak inflation rate of 9.1%.
A study by industry researcher CoreLogic looked at 368 coastal markets within 50km of the capital cities.
The most expensive real estate by the water can be found on the outskirts of Perth where 10 suburbs ranked in the top 20 in terms of price gains.
While you can still do a seachange for less than $1 million, if you want the dress circle you’ll have to dig deeper into your pockets and head for Victoria.
The coastal villages of Portsea ($3.03m), Flinders ($2.33m) and Sorrento ($2.05m) on Melbourne’s Mornington Peninsula dominated the top three most expensive coastal suburbs in terms of median dwelling value.
CoreLogic says that between March 2020 and their cyclical peak, Portsea values shot up 65.3%, Sorrento increased 69.8% and Flinders lifted 63.7%.
But, not everyone has enjoyed strong price trends. The Richmond Valley in Northern NSW recorded the largest drops in value relative to their COVID peak.
Nearby, Byron Bay recorded a spectacular increase in values during the worst of the pandemic.
CoreLogic said that with 2022 price growth of more than 60%, Byron Bay “overshot” the market.
These tips will help you decide whether a seachange is right for you.
Keep active
Many people entering retirement and making a sea or tree-change look for a part-time job to keep themselves occupied. If this sounds like you, then research the local job market. Consider remote work with an employer back in the city.
The essentials
The quality of healthcare services is a vital consideration. You will want easy access to a doctor’s surgery and a hospital.
Your location
You’ll travel greater distances in rural areas, of course. When picking a location for your home, make sure you don’t face a 30-minute drive to get milk and bread, or be prepared to plan your shopping accordingly.
Tribe and vibe
A successful change depends on your ability to make friends and enjoy the amenities of the local area. Find out whether your target area has the “tribe that gets your vibe”. Many adventures fail because sea and tree-changers can’t establish a social network.
Future proof
Investigate any planned infrastructure developments, such as roads, resorts and commercial developments, that might affect the local environment and your lifestyle.