VIC Booming prices in Phillip Island 2018/2019

Good thread just picked up on it. I have a place in Surf Beach - bought it for $280k in 2004 and probably worth $420-440k now. Thats a guess, I didn't buy for growth and would never sell. The building around San Remo is going nuts with the new estate and even in Surf Beach, quite a few dwellings going up and one in particular is blocking my view of the bay.

PI will always be a sleepy coastal town. It will never be a Rye, and thankfully so. Personally I find the the place a dream and love to getaway but its hard to live there. Mates who do have to travel for work as there is not much around the beach and its hard for business, with cyclical demand based on tourism. The place that flourishes is the chocolate factory with all those bloody chinese tourist buses.

Good insights above
Cheers Ivan

 

This is a game changer for medical services in the area.

I don't see property price rises, strong demand, declining stock on market, low days on market, growing tourism, high construction and development and increasing online search interest changing anytime soon.

 

Surf Beach has seen growth of $130,000 in the median house price since 2010. Because of this I would assume your house has seen higher capital growth than the $130,000 - $160,000 you think on top of its 2004 value. Phillip Island has a lot of residents who tend to never sell and consequently it has become very tightly held. This has been fundamental in supporting property price growth accompanied by an increase in demand.

Construction as well as tourism significantly grow to the local economy. There is also a nearby estate being built in Newhaven which has really changed the overall look of the area.

The car ferry will likely make it easier to commute from Phillip Island and provide new opportunities for more accessible work on the Mornington Peninsula. The carry ferry would also see tourist numbers increase in Phillip Island. This is especially in the colder months as the Mornington Peninsula would still attract visitors who could then more easily explore Phillip Island as well.

International visitors continue be high in the area and are the top spenders. 'International Visitor Survey data revealed 53,000 international visitors flocked to experience tourism attractions on the island, spending $16 million in the year to December 2017. Tourism Research Australia’s survey shows international visitors rose by 54 per cent and spending increased by 23 per cent from the previous three years.'

 

Phillip Island is like Somers, Merricks Beach, Balnarring Beach and Shoreham on the Mornington Peninsula. Very peaceful and somewhat undiscovered.

 

The broader area of Bass Coast is also performing very well being one of the top 8th growth regions across Australia in 2018.

 

The 2019 Phillip Island Superbike World Championship is set to see almost 190,000 check ins at Phillip Island this month which will attract new interest in the holiday real estate market.

Phillip Island Circuit - Home

 

HOUSES in Cape Woolamai have been Gippsland’s strongest property performers over the past 25 years, a new report shows. 5 out of the top 10 list of top growth performers since 1993 were coastal suburbs by the bay. The top 4 best performers were also all located by the bay and mostly in Bass Coast.

 

French Island's former prison could become Chinese tourist destination

 

Phillip Island is still largely undiscovered despite its recent growth spurt.

Is this Victoria's most overlooked and undiscovered coastal destination?

 

'Cape Woolamai in the Bass Coast district has recorded price gains of 565% over the 25-year period. That’s taken the median house price from just $63,000 in 1993 to $419,000 today.'

Over a 8 year period since 2010 these have been the best performing suburbs in median house price growth (CoreLogic data):
San Remo $300,000
Silverleaves $250,000
Smiths Beach $240,000
Cape Woolamai $170,000
Cowes $170,000
Surf Beach 150,000
Ventnor 145,000
Rhyll 140,000
Newhaven 130,000
Wimbledon Heights 130,000
Sunset Strip 100,000

The Bass Coast area was also recording high and consistent turnover of properties for sale depicting strong demand in late 2018. Coastal regional areas are also performing better in total turnover when compared to the capital cities.

 

Hi John - don't get the Surf Beach figures - your saying median has $140k increase?

 

Yep Jan 2011 the median house price in Surf Beach was $320,000 and now its $470,000 today.

 

Cape Woolamai featured recently for its sea, serenity and well styled/designed houses in Domain. The rare position and proximity to a spectacular ocean beach is mentioned as a key drawcard and is more the reason to invest.

Sea, serenity and style combine to make this place pretty irresistible

 

Phillip Island has experienced the strongest house price growth not only in the whole of Bass Coast, but also in the entirety of the Gippsland region.

The top performers in the whole of Gippsland and Phillip Island are mostly located on the north/western Port Bay/Swan Bay side facing French Island. These following areas were the best performers in the past 10 years.

1. Rhyll $390,000 increase in median house price ($680,000 median house price)
2. San Remo $300,000 increase in median house price ($550,000 median house price)
3. Silverleaves $250,000 increase in median house price ($755,000 median house price)
4. Smiths Beach $240,000 increase in median house price ($650,000 median house price)
5. Cowes $200,000 increase in median house price ($511,000 median house price)

Wurruk with a 10 year gain of $307,000 was the only exception to gain a similar amount of growth in the Gippsland region outside of Phillip Idlsnd.

 

I think Phillip Island is a really lovely spot, but i do wonder about the merits of property investing there. I can understand folks wanting a holiday, maybe retirement home etc, its that kind of place. But i always notice there are so many properties on the market in estate agents windows - it seems in many areas every other house has a for sale sign on it - and it's always been like that.

wonder if this is just an indicator of people buying a holiday spot there and getting fed up of it a couple of years later? a lot of stock also seems to hang around. new stuff sells quite well and i think this is skewing the appearance of median price increasing. but i think the devil is in the detail with the stats here. there's a lot of property which hasnt increased much in value from what i can discern.

it always seems like theres a lot of choice with fair amount of newer property for buyers in this market, but the older bog standard stock which comprises the bulk of the properties on PI is a different story.

i also notice that an lot of the older properties seem to be really quite basic / shabby build quality and many areas feel quite "low", socio-economically speaking.

 

i would disagree with this

old vacant land in the "low socio" areas was selling for 150k a couple of years ago
late last year when market was peaking the same blocks woulf of fetched 280

the shacks you talk about often sell about 70-100k above land value which is a strange anomaly which you only see in holiday towns

so a shack now is about 360-380k
would of onky been about 250 a couple of years ago

all the new houses that are 'skewing' the data are mostly pretty cheap builds as well

not saying its a good time to invest on the island but to say its had little growth is incorrect

 

There hasn’t always been plenty of listings in the Phillip Island market. In fact, listings are at the lowest point they have been in the past 6 years or so. It is a very appealing area for holiday homes, retirement homes, investments and for first home buyers. It has become a tightly held market due to its attractiveness to a range of buyers at an affordable price. Since early 2013, the total amount of listings in Phillip Island has declined dramatically. Look at the lack of listings in postcode 3922 (Silverleaves, Cowes, Ventnor, Smiths Beach, Sunderland Bay) and the north-eastern side of Phillip Island in postcodes 3925 and 3923.

Residents don’t tend to purchase and then decide to sell shortly after. The majority have been held onto for many years for holiday homes and retirement homes. The older homes and new homes tend to both go up in value as the median house price increases like anywhere else. The older beach houses also tend to be in areas where there isn’t a lot of development which has restricted the amount of listings available in the area, further increasing the value of the older homes in particular. It is a relatively high socio-economic area likely due to there being a lot of holiday homes or retirement homes.

 

This Phillip Island property is also likely to sell for the first time in 150 years. It really shows how tightly held the market is.
Historic Phillip Island farm for sale

 

Both the Surf Coast and Bass Coast councils are set to experience more than 50 per cent growth in population in the next 13 years, while other councils are experiencing at least 30 per cent growth. This is set to sustain demand in the local property market.
Councils partner on population boom - Government News

There is also an investment of $24.7 million to build a new junior secondary campus for families across the Bass Coast and build a new indoor competition-grade gymnasium at Cowes Primary School. This is further attracting new families to the area. Families across Phillip Island and San Remo will get greater access to secondary education.
Delivering A New Junior Secondary School For Phillip Island Families

Bass Coast towns in Melbourne’s south-east like Wonthaggi and in Phillip Island are also now rising.
Suburbs to buy in right now

 

Phillip Island’s $58m new Penguin Visitor Centre just opened drawing more tourist to the region and supporting real estate prices

Phillip Island’s Penguin Visitor Centre just got a swanky $58 million upgrade