Regional NSW coastal towns outstripping capital cities for house price growth

Posted by | August 4, 2018 | Community, General, News

HU housing growth

While Sydney has posted its largest annual house price fall since a decade ago, several regional areas in NSW have experienced double-digit growth over the past 12 months.

The star performer was the Port Stephens local government area (LGA), just north of Newcastle, which recorded 16 per cent growth over the year, and 3.6 per cent over the quarter. The median house price for the area is now

$580,000, from $500,000 a year ago, although it remains below the Newcastle median of $631,500.

Ray Noonan, from Raine & Horne Port Stephens, said his area was trading quite well with many buyers relocating to the region.

“It’s predominantly people coming out of Sydney for lifestyle reasons and with future retirement plans,” Mr Noonan said. “They’re buying, looking to lease it out for few years, and then planning to retire here.”

Mr Noonan said local buyers upsizing and downsizing probably accounted for 30 to 40 per cent of their sales.

Port Stephen’s growth was closely followed by the Upper Hunter Shire, which includes towns like Merriwa, Scone and Aberdeen, posted 15.9 per cent over the year, but only 0.3 per cent over the quarter, landing on a median house price of $337,500.

On the South Coast, the Kiama LGA grew 14.8 per cent over the year to a median house price of $953,000. Ballina, on the North Coast, posted similar annual rates of growth off a lower base, up 14.6 per cent over the year and 7.2 per cent over the quarter to $637,500.

Celina Gregory, from First National Coast & Country, said the Kiama market was also being driven by buyers from bigger cities.

“We’re still getting buyers looking for a lifestyle change from Sydney,” she said, adding they were used to Sydney prices and were quite happy to pay for good qualities properties. The train access was also a drawcard for them.

“There’s not a huge amount on the market at the moment”, Ms Gregory said. “There’s more buyers than properties. Once people are here they don’t tend to want to move on, and that shows in our property prices.”

Ms Gregory said downsizers tended to be interested in the newer apartments and villas, while younger families, facing affordability issues in Sydney, were predominantly looking at land.

The holiday rental market was “extremely strong”, she added, and owners could let their properties while they were away and get excellent returns.

John Nicolson, principal of McGrath Ballina, said the Ballina region was very attractive to retirees because of its accessibility, via its airport connection.

“We still are getting a lot of demand, a lot of response to any new listings,” he added. “When the GFC hit years ago, that market dried right up. It’s certainly back now.”

Mr Nicolson said there had been a lot of new construction aimed at the retiree market, and recent infill developments had been “snapped up” by retirees looking to be close to town.

There were also buyers coming from Byron Bay. “If you’re selling in Byron, and buying in Ballina, you’re doing quite well,” he said.

Other LGAs to record median house price growth of above 10 per cent over the year were Orange, Cessnock, Eurobodalla and Byron Bay.

While several areas posted small drops over the last quarter, including Bega Valley, Tamworth regional, Port Hastings and Macquarie, and Shellharbour, it was only Wingecarribee, in the Southern Highlands, that was behind year-on-year. It recorded a median house price of $780,000, down from $800,000 a year ago.

 

Source: https://www.theherald.com.au/story/5552559/regional-nsw-coastal-towns-outstripping-capital-cities-for-house-price-growth/

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