Oceanfront property prices have risen ten times the national average in the past 12 months as the demand for vacation and primary housing soars in response to the aftermath of the COVID-19 crisis and growing confidence.
The largest increases have been seen in beach suburbs, commuting within two hours from central business districts, typically Sydney and Brisbane, which also have the infrastructure to support remote working.
There have also been great deals on trophy houses in Victoria’s prestigious coastal addresses such as Portsea, traditionally a summer playground for the wealthy, located about 109 kilometers southwest of Melbourne.
Real estate and buyer agents say demand is much higher than the seasonal increase for oceanfront properties around Christmas, New Years, and the January holiday season.
Liz Jensen, the manager of a real estate agency in Portsea, says she has just completed her biggest quarter of sales in 33 years of buyers looking for a vacation home or permanent home to work from.
Jensen says the agents will work through the normally quieter vacation period due to the unusual demand.
She says a lot of stores are out of the market, such as the recent sale of a large Portsea home on a cliff with its own pier that raised about $ 25 million.
« People can’t travel overseas and aren’t sure when they’ll be able to, » says Jensen. « Buyers tell me they would normally hop on a plane for an overseas vacation, now they’re hopping in a car to their vacation home. ”
Figures are based on an analysis of 12 month changes in property values for oceanfront zip codes by CoreLogic, which monitors property prices.
High prices are also being paid for oceanfront storefront properties by a new generation of buyers looking to combine luxury resort-style apartments with a secluded office to work in, says Paul Arthur, executive director of Queensland Sotheby’s International Realty.
« They usually go skiing in Aspen this time of year, » says Arthur. “Instead, they are here in Australia spending a lot of money in Australia on large discretionary items, including property, boats and RVs. ”
According to Finder, who oversees interest rates and financial services, Australians spent around $ 1. 1 billion a week traveling last year before the pandemic stopped overseas travel.
According to Arthur, luxury home prices in popular locations on Australia’s northeast coast have increased 10 to 15 percent, compared to a national average of around 2. 4 percent.
Recent sales include $ 6 million for a 2,228-square-foot luxury home on Hamilton Island, about 890 kilometers north of Brisbane.
« COVID-19 has not affected the market. There have been some significant sales in huge volumes, ”says Arthur.
House prices in Sunshine Beach near Noosa, about 160 kilometers north of Brisbane, have increased by more than 24 percent. The increase in apartments was around 14 percent.
Ben Edwards, director of sales at LJ Hooker in Palm Beach, 44 kilometers north of Sydney’s central business district, said around nine out of ten buyers were looking for a vacation home before COVID-19.
But « many now have more remote working flexibility and are looking for primary residence, » says Edwards.
« This has started to translate into a demand for areas that are very desirable but are often considered too far away for a five-day commute, » he says.
Recently, a record price of more than $ 20 million was set for a two-story, five-bedroom, four-bathroom Palm Beach home on a 2,074-square-foot block.
Brooke Flint, a Sydney-based buyer, says demand is « huge » in the northern suburbs north of Manly, from Dee Why to Avalon, about 23 miles from downtown Sydney.
House prices in Mona Vale, 17 miles north of Sydney, have increased about 14 percent and apartments by about 6 percent over the past 12 months.
House prices in Henley Beach, about seven miles west of Adelaide, rose more than 10 percent, while house prices in Two Rocks, 39 miles north of Perth, rose about 8 percent.
According to investment bank Morgan Stanley, the general outlook for the real estate sector remains positive despite trade tensions with China and the economic setbacks caused by the pandemic.
« While some signs of real estate stress may emerge as general stimulus measures rejuvenate, we expect the stronger underlying economic recovery to support positive price growth and likely to beat previous highs in national prices, » the bank wrote in their report analysis.
CDC calls for the « universal » use of face masks; Wall Street closes at record highs by the end of the week. The US virus death toll was over 500 in March. 000. Stimulus-relief conversations are gaining momentum. Follow the developments here.
All three major US benchmarks rallied towards the end of their week when November’s disappointing job report raised hopes for further impetus. Iron ore exceeds $ 145 per ton.
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