VIC Victorian coastal towns vs inland regional towns in the next 12-17 years

Discussion in 'Where to Buy' started by johnmteliza, 20th Nov, 2018.

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  1. johnmteliza

    johnmteliza Well-Known Member

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  2. johnmteliza

    johnmteliza Well-Known Member

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    The Victorian coastal hotspots bucking the property downturn

    'Ms Parkes and Ms Shergold are selling the Rye Opera House in Rye, a suburb which has become one of the most popular to buy a beachside home in Victoria. Like Ms Parkes and Ms Shergold did more than a decade ago, city dwellers have been flocking to coastal towns. Holiday home buyers, workers who split their time between the city and the coast, and young families moving to these areas have been bolstering sales along the coastlines, although the level of inquiries recently has been a little lower as buyers take time to get finance.

    On the Mornington Peninsula, south-east of Melbourne, and the Great Ocean Road near Geelong dwelling prices have been more resilient than in the city. Some 351 homes were sold in Rye between December 2017 and November last year, according to Domain Group data, while prices rose by a median 7.1 per cent last year compared to 2017. “Suburbs and cities within a reasonable commuting distance of the CBD have been more resilient than areas of Melbourne as they’re relatively more affordable,” Domain economist Trent Wiltshire said.

    On the Mornington Peninsula, sales have likewise remained strong. The only exception has been in Portsea, which saw a fall of 4.9 per cent between 2017 and 2018. Despite this, selling agent and director of Kay & Burton Portsea Gerald Delany said sales had remained strong over the busy summer period, especially in Rye.

    “Sales have been strong, equal to last year,” selling agent and director of Kay & Burton Portsea Gerald Delany said, adding buyers were looking for Mornington Peninsula homes that could range from the $1 million price point to about $6 million or even higher. “We’ve got one – a clifftop property – around the $10 million mark,” he said.

    Many buyers were moving to areas like Sorrento and Portsea wanting to spend part of their week working from home and the rest in an office in Melbourne. “They’re looking for one-level homes that are already done, they don’t want to buy an old clanger and do it up,” Terry Sparks from TJ Sparks Real Estate said.'
     
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  3. johnmteliza

    johnmteliza Well-Known Member

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  4. JohnPropChat

    JohnPropChat Well-Known Member

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    Past performance is not an indicator of future performance. Coastal towns while they do grow can have a short and unexpected boom cycle. Extra caution required.
     
  5. The Y-man

    The Y-man Moderator Staff Member

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    Agree - and not only that, IMHO if they are "going strong" now it would be insane to buy in unless you are going to do a flip (sellers market). Much better to buy into a "buyers market' where prices are cooling off.

    The Y-man
     
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  6. johnmteliza

    johnmteliza Well-Known Member

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    Some of these coastal markets were also "going strong" in 2017 and 2016 and continued to grow in 2018. This is ongoing growth. Flipping is particularly popular in the coastal markets I have mentioned with good success. JohnPropChat what you are saying is very general and can be said for all markets. The current boom cycle was to be expected and has been evident in the market for the past 2 years (not short). Some coastal seachange markets have experienced growth for over 5 years at a larger rate than treechange markets.
     
    Last edited: 20th Jan, 2019 at 7:40 PM
  7. JohnPropChat

    JohnPropChat Well-Known Member

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    That doesn't change the fact that the markets moved quite a bit. I am not on the ground there, I exited Melbourne market a year ago when I saw the writing on the wall and I am glad I did.

    Everyone's strategy is different but the one common thing that applies to all - entering the market when it is peaking/peaked is risky at best.
     
  8. johnmteliza

    johnmteliza Well-Known Member

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    I completely agree Melbourne's market has peaked. However, this forum has a focus on Victorian regional markets and coastal markets which haven't. Thanks for your input nonetheless.
     
  9. JohnPropChat

    JohnPropChat Well-Known Member

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    I said peaking/peaked markets. Thanks for your "info" nonetheless.
     
    Last edited by a moderator: 21st Jan, 2019 at 9:05 AM
  10. geoffw

    geoffw Moderator Staff Member

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    It's been a while since I checked, but Shepparton has had very sluggish growth. I can't comment on any other location. A part of the reason has been the availability of land on the outskirts (just like many rural towns); another has been infill, where a house is built on the rear of a very large block.

    Somebody I know in the legal community tells me that ice addiction is coming to be a big problem in rural Victoria - they have seen it blow out in the Wangaratta Shepparton area.

    'I'm scared to go out': Grandparents fear evils of ice as drug trashes towns
     
  11. johnmteliza

    johnmteliza Well-Known Member

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    Shepparton is pretty stable with only $10,000-$20,000 growth in 2018. Availability of land is a clear issue (likewise in Melbourne). Interestingly on the Mornington Peninsula there is a limited supply of land as they won’t allow subdivisions from Dromana on down. The Green Wedge zone has also limited the amount of urban sprawl.

    It could be becoming less of a problem with overall crime in Wangaratta down 6% in the past year. Thanks for your input.