Summer real estate holiday boom

INCREASING interest from Melbourne buyers with record sales, coupled with a population boom throughout the region, are the makings of a regional renaissance housing market boom.
And the summer months for property sales haven’t taken a backward step, with the law of supply and demand firmly favouring those selling in regional areas due to capital city plummeting markets.
“The market is such that right now we are selling homes within two days of coming onto the market, with an entry price sitting at about $400,000 in Inverloch. It’s still very busy over the summer holiday period,” director of LJ Hooker Inverloch and Phillip Island Allan Mann said.
“There’s a number of factors boosting local sales to the point where we now see new records and holding prices. The population here in Inverloch has almost tripled in the past 20 years and a lot of development and growth surrounds that.
“We see a lot of buyer interest from the South Eastern Suburbs of Melbourne, particularly because that basin around Pakenham and Officer is now wall-to-wall.
“There’s a lot of commercial, free-hold interest in excess of the $1M mark too.”
Statistically, the Real Estate Institute of Victoria states median house price sales for Inverloch, Venus Bay and Cowes are $575,000, $315,000 and $485,000, respectively. The regional Victorian average is about $417,000, noting that figures are prone to skewing due to outlying sales prices from high value properties.
Houses haven’t stopped selling until the cows come home at Phillip Island, with Alex Scott Phillip Island director Greg Price noting a similar story over the San Remo bridge and within smaller, rural townships.
“It (regional Victoria) has gone gangbusters in terms of sales. We now see a renaissance period boom, particularly around those little hamlets of Loch, Korumburra, Koonwarra and the Gurdies,” Mr Price said.
“Though the entry point seems to be around the $400,000 mark for coastal Gippsland, there’s still plenty of good buying and good value on offer, especially when compared to the markets of the Peninsula and Yarra Valley.
“It’s not uncommon to see house and land packages gone within a day’s sale, due to a lack of sub-division plans with only in-fill areas generally available here at Phillip Island, on existing zones.
“Those buying up are retirees, tradespeople and small business owners, for the affordable lifestyle, lack of commute traffic and quality retail offerings particularly around Korumburra which is shining a light of its own.”
Once thought of solely as a holiday home market, Venus Bay housing demand has soared in recent years.
“Since 2016, we have seen so many people buy into town to live permanently. Some have bought existing homes and some blocks, with a view to build their permanent home,” director of Alex Scott Venus Bay Daniel Lawrie said.
“Traditionally, Venus Bay has been predominately a holiday home market. Because of this, average turnover of homes was 5-7 years, which meant stock levels were high, sense of urgency for purchasers was low, and the median house price sat at around $250,000-260,000.
“Fast forward to 2018, and we now have a high demand of permanents making the affordable sea change to Venus Bay. This has resulted in much lower stock levels of houses and blocks of land, making the market much more competitive which in turn has driven the median house price up to around $315,000; an increase of roughly 20%.
“Purchasers seem to hail from the outer suburbs of Melbourne, hot spots being the Knox areas such as Ferntree Gully, Rowville and also Ringwood. Many people come from inner city Melbourne too, which we believe could be due to upgrades in freeway infrastructure.
“Permanent residents in Venus Bay always hovered around 400-600 people in the past, but since the 2016 census stated 940 people, the numbers have been steadily rising and it would make sense to assume that we have now cracked the 1000 mark.  “We have had a mixture of young families, young couples, retirees and semi-retirees make the move into our affordable market.
“With no new sub-divisions on the immediate horizon, people are snapping up blocks whilst they can and whilst the pricing is reasonable.”

Pleasing sales: Brooke Cross, left, and Tani Gregorich of LJ Hooker Inverloch at the 9 Scott Place property. Prosperous sales are set to continue throughout the Bass Coast Shire with Melbourne buyers flocking to the seasides.

Short URL: http://thestar.com.au/?p=27065

Posted by on Jan 8 2019. Filed under Featured, News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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