Appetites increase for NSW South Coast properties

Canberra’s annual exodus to the NSW South Coast is under way and locals are bracing themselves for the influx – and the welcome injection of funds into their economies.

However, many local real estate agents are saying the region’s popularity combined with increased buyer appetite – particularly from Sydney and Canberra purchasers – could push prices skyward in 2017.

Grant Gillett at First National Batemans Bay says demand has more than doubled from 2015 and he could not source enough homes to sell.

“I could sell another 10 today – if I could get a hold of them,” he says.

“Holiday homes tend to be tightly held. Tight supply and huge demand means prices will go up.”

Gillett says four-bedroom, two-bathroom family homes are highly sought-after and the most popular price points are between $300,000 and $500,000.

“Surfside and Sunshine Bay are the hot-spot locations, with Lilli Pilli attracting higher end sales around the $1 million mark,” he says.

First National’s 27 rental properties are booked out over the holiday period at rents between $1000 and $3500 a week.

Nicole Cooper of Elders Merimbula has also noticed an increase in buyer demand, and says much of it in her area is driven by Canberra retirees.

“They are looking at properties around $550,000 and want [three bedrooms and two bathrooms] with study and two living areas,” she says.

“Demand has risen significantly this year, but the supply side is very tight. We just can’t get enough.”

Cooper says Pambula Beach is highly sought-after but is a relatively small enclave of just a few hundred homes.

“It’s a lovely, beachy area, but it’s very tightly held,” she says.

One of her biggest sales of the year was there – a $1.18-million, four-bedroom, three-bathroom home on a 645-square- metre block.

Cooper says she has seen the rise of a new trend with younger retirees who are looking for hobby farm-type properties within five minutes of the beach.

“They’re looking for small acreage, but still want to be able to quickly access amenities,” she says.

“Those types of properties are also very scarce.”

LJ Hooker Batemans Bay principal Donna Newell says anything on the waterfront or with views is always in demand among buyers and renters who are now coming from beyond Canberra.

“We’re seeing more people from Sydney and Melbourne in their 40s and 50s who are looking to buy,” she says.

“Not only do they want one to live in, but they’re also looking for investments, too.”

Newell says the $350,000 to $500,000 price range is popular and that demand has increased by about 10 per cent in the past 12 months.

“Higher priced homes in the $1 million to $2 million band are also selling well,” she says.

Rentals are also performing well and LJ Hooker has booked 4348 bed nights in 2016.

“Our prices range from $500 to $4000 per week,” Newell says.

“We have houses and apartments to suit all budgets from small beach shacks to eight-bedroom prestige properties.”

The LJ Hooker principal says renters are demanding clean, comfortable furnishings and bedding and well-equipped kitchens.

And she has her own theory on the renewed popularity of local holiday destinations.

“In the past people would have opted for an overseas getaway,” she says.

“I think they are now holidaying closer to home simply because they feel safer in Australia.”

Standout 2016 South Coast sales

50 BEACH PARADE, GUERILLA BAY

Known as Camp David, this architecturally designed beachside retreat sits on a lane that fronts onto Guerilla Bay. Sold for $1.7 million by LJ Hooker Batemans Bay.

31 MURRAMARANG ROAD, BAWLEY POINT

A substantial seven-bedroom, seven-bathroom home set on an impressive 1.2 hectares of land with water views. Sold for $1.4 million by First National Batemans Bay.

2 CORAKI DRIVE, PAMBULA

A modern open-plan, four-bedroom, three-bathroom home with a double garage on 645 square metres. Sold for $1.18 million by Elders Merimbula.