Coastal homes in demand
IF you want bang for your buck, South Gippsland has amongst the most affordable coastal real estate – but not for long as property prices continue to climb.
With the perfect blend of seaside and country, all within a 90-minute radius of Melbourne, it’s no wonder this once-hidden-gem has become a hot spot for tourists and investors.
“In 10 years we’ll look back on property prices and think ‘I should have bought two’,” Greg Price, director of Alex Scott and Staff, said.
“South Gippsland region is still very good value in comparison to a lot of other areas around Victoria that are within 60-90 minutes of Melbourne, particularly through rural Gippsland.”
But it won’t stay that way with Mr Price saying there is a lot of “shrewd money” coming into South Gippsland at the moment.
The South Gippsland realtor of around 20 years also said that while summer was traditionally their busiest period, that isn’t the case anymore.
“As the population grows, those surging periods are disappearing – it’s busy all year round now,” he said.
Online listings and virtual inspections are also now allowing foreigners or those living further afield easier viewing access.
In Cowes, the median house price is up by eight per cent since last year, currently sitting at $525,000.
In Wonthaggi, there has been an 86 per cent increase in median house prices in the last five years.
The town now comes in at number 15 in a list of Victorian towns with the highest growth in land value.
Venus Bay’s median house price has also jumped $80,000 in the last three years from $250,000 to $330,000.
This price climb in Venus Bay is expected to continue with another $90,000 plus leap in the next five years.
Daniel Lawrie, realtor at Alex Scott and Staff Venus Bay for 17 years, said he attributed the spike to more people wanting to escape the hustle and bustle of Melbourne.
“Everything is so fast-paced and now more so than ever, having genuine peace and quiet is what people want,” Mr Lawrie said.
He said the installation of the NBN two years ago has also helped to put Venus Bay and surrounds on the radar of people wanting to work from home and has resulted in more permanent residents moving to the area.
Meanwhile, there has been strong price growth in Inverloch, especially among some of the more expensive properties, with some properties experiencing upwards of 10 per cent price growth in 12 months.
But according to Lewis Stone from Lewis Stone Real Estate, unit sites are leading the way with up to a 20 per cent jump in prices.
“Units were going for $250,000 to $270,000 three years ago and are now selling for between $310,000 and $340,000,” Mr Stone said.
“There seems to be a lot of retirees from Melbourne or people looking to retire who are buying, renting out the homes for a year or two, then refurbishing or rebuilding so that they can move into them,” he said.
Mr Stone suspected 65 per cent of buyers were from outside the immediate region with many newcomers hailing from the Mornington Peninsula.
And while the go-to price point is between the $600,000 to $700,000 range, more buyers are inspecting properties priced at between $1.5 million to $2.5 million.
Demand is also at an all-time high in Yarram.
Greg Tuckett from Elders Real Estate said more homes are being sold than coming back on the market.
“Stock is diminishing,” he said.
“Property is very affordable, especially at the current interest rates. The repayment of a loan on these properties is less than or no more than rental value.”
While prices continue to climb across South Gippsland, the ultimate game changer would be improved transport, Mr Price said.
“Transport from Melbourne to Lang Lang, Clyde and Koo Wee Rup is what is missing,” he said.
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