Sea change 'hot spots'

12 November 2004

Whilst Queensland has for a long time been home to many of Australia’s premier holiday or “sea change” destinations such as Noosa, Port Douglas, Coolum, Coolangatta and Palm Cove to name a few, New South Wales has had Kingscliff, Port Macquarie, and Terrigal; and Western Australians have moved to seaside resorts such as Broome and Bunbury for a quieter life by the sea. So where are the new “hot spots” attracting the investor with a sea change in mind?

KPMG partner and demographer, Bernard Salt, sees driving time as a major factor in determining the next hotspot, but for a location to attract the affluent or serious investor it also needs good transport infrastructure, a tourist-based industry and an inclination towards retirees.

Agnes Waters, 5 hours north of Brisbane, has been getting a lot of publicity. With an estimated permanent population of 11,000 (Noosa has 60,000) and a holiday influx to 50,000, it is offering some attractive property deals. According to figures supplied by Australian Property Monitors, house prices have seen 20 per cent annualised growth over the past decade.

In Victoria, Apollo Bay is a typical seaside resort 3 hours southwest of Melbourne, where median house prices have seen 12 per cent annualised growth over the past decade.

Victor Harbour, located 83km south of Adelaide, was once the main port of the South Australian coast. Now the heart of the retirement belt, its median house prices are up 19 per cent over the past year to $251,250 - higher than metropolitan Adelaide. Asking price for property on the esplanade is currently around $1.5 million per block, while in the hinterland it’s around $200,000.

NSW can boast Pearl Beach, Merimbula and Mollymook as alternative sea change locations. Pearl Beach, just 93km north of Sydney's CBD is attractive, very expensive and is the chosen holiday home spot for many famous playwrights, TV personalities and advertising executives. Median house prices are around $950,000, up 29 per cent over the past year. If you had bought there 10 years ago you would have seen around 16 per cent annualised growth.

Merimbula may be a small seaside town 471km south of Sydney, but it has seen a massive 36 percent increase in house prices (to $459,200) over the past year. Median unit prices are around $240,000, a 23 percent change over the same period.

Since Mollymook has become part of the continuous coastal development, its average median house price has risen to $412,500, a 10 per cent increase over the past year and 13 per cent annualised growth over the past decade.

In Western Australia, investors are flocking to the beautiful seaside town of Yallingup. Just 264km south of Perth, Yallingup is picturesque with hills dropping towards the sea and beaches edged with wildflowers. The average unit price is around $640,000 and average house price $425,000.