Surf Coast: May 2021 Market Wrap
To say that Surf Coast property has enjoyed a strong start to 2021 would be an understatement.
In just three months between December 2020 and March 2021, the median Torquay house price lifted 5.2% to $910,000, while the median Anglesea house price lifted 6% to $1.15 million.
We look at what’s behind today’s booming property market and how we believe the rest of 2021 will play out in our local property market.
Leaving the median in our wake
While the Surf Coast property market has been booming, rising prices are, to some extent, part of a wider trend. Property values have been rising across Australia, with March 2021 recording the highest national monthly capital gain in 28 years, at 2.7%.
But it is more than that too.
After all, of all the capital cities, lockdowns and stagnant population growth have meant Melbourne has performed most poorly. Prices in Victoria’s capital lifted just 2.2% in the year to April 2021, compared to 7.5% in Sydney.
The good news is that our local area is easily outperforming Metropolitan Victoria, with Anglesea recording a median gain of around 17% over the past 12 months, according to CoreLogic data. Meanwhile, the average apartment price in Torquay rose an eye-watering 26.8% and Jan Juc house prices lifted 26% too, according to realestate.com.au.
Coastal appeal growing
The main reason for our area’s impressive property price growth has simply been the growing appeal of life here on the Surf Coast. We’re attracting more residents than ever before.
The seachange appeal of our area started some time ago but there’s little doubt this has accelerated under COVID-19, as a lot of city dwellers start craving a more relaxed lifestyle.
What has been most interesting about the past 12 months is that we’ve also noticed a real demographic shift in the people who are choosing to call the Surf Coast home. Increasingly, the people buying into our area are professionals and young families who work in Melbourne or Geelong but find they can now do most of their job from home.
We expect that, over the next few years, more families are likely to move in, bringing new energy and vitality to what is already one of Australia’s most desirable lifestyle destinations.
No change to the market anytime soon
We also expect that the current booming market will last for some time to come.
Just researching the market?
The only way we see it changing in the immediate future will be an economic shock, such as a spike in unemployment, rapidly rising interest rates or a prolonged lockdown.
Otherwise, we’d have to see a sharp increase in housing stock to absorb the high level of demand. As it currently stands, there simply isn’t enough stock on the market to meet demand. Buyers need to act decisively.
Until we do see more stock, we expect that demand will continue to exceed supply by some distance, forcing prices to rise.
In other words, our view is that Surf Coast property remains a solid long term investment on every level.
Here’s where the property market was at on 31 March 2020, according to realestate.com.au data
Houses median property price: $910,000
Houses median weekly rent: $540
Units median property price: $685,000
Units median weekly rent: $460
Houses median property price: $1.15 million
Houses median weekly rent: $520
Houses median property price: $1.14 million
Houses median weekly rent: $500
If you’re looking to buy or sell on Victoria’s Surf Coast contact me for further information.