Batemans Bay expected to experience surge in price growth over coming years

Prospective NSW South Coast investors would do well to consider buying a property in Batemans Bay.

The seaside town is expected to experience a surge in property value over the next eight years, according to the latest Residex Predictions Report.

Batemans Bay ranked third in the list, which reveals 109 Australian suburbs and towns where growth is expected to reach between 5.1 per cent to 8.4 per cent per year over the next eight years.

The report, which was calculated based on each locality’s median value rather than recent sales data, predicts home values in Batemans Bay will grow an average of 8.29 per cent each year over this period.

The town’s median house price sits at $355,000, with units at $350,000, according to Domain Group data.

Domain chief economist Andrew Wilson said towns along the NSW South Coast had underperformed as recently as 12 months ago, however median house and unit prices surged 18 and 58.4 per cent respectively in 2016. 

Dr Wilson attributed the massive rise in unit prices to new, higher priced developments hitting the market in Batemans Bay.

He said the Batemans Bay market could be volatile, as the town experienced a low turnover of stock.

However, total sales figures from the Eurobodalla Shire were more reliable. These figures demonstrated house and unit prices rose 10.6 and 4 per cent in 2016. 

Eurobodalla’s median house price is $415,000, while the median unit price is $291,000. 

Dr Wilson said rising house prices in Wollongong, Shellharbour and Shoalhaven had seen some seachangers, downsizers and holiday home-buyers head further south for more affordable options. 

“You can almost see the heat moving down from Sydney to the southern parts of NSW,” Dr Wilson said.

NSW South Coast agents are expecting prices to rise this year with increased buyer appetite for residential properties in the region, particularly from Canberra and Sydney.

First National Batemans Bay has previously said demand for houses in the areas has more than doubled since 2015.

Similarly, LJ Hooker Batemans Bay recently cited a 10 per cent jump in demand for homes in the past 12 months.