Beachside boom still going strong
Over one-third of coastal housing markets have hit record highs, despite the general slowdown of regional house prices after the COVID-19 peak.
CoreLogic has revealed that 35 per cent of regional seaside markets around Australia are recording record high median home values “despite multiple rate rises, cost-of-living pressures and market uncertainty”.
A further 8.7 per cent of coastal markets recorded a value drop of under 1 per cent over 2023, bringing the total of resilient beachside markets up to almost 44 per cent.
“The divergence between cities and regions was a defining trend of 2023, and coastal regions were no exception to the increasing gap between top and bottom performers,” said CoreLogic research director Tim Lawless.
“Buyers who found better value in regional areas of Western Australia and Queensland not only bought into the upswing, but will have contributed to the resilience of these top performing spots,” he said.
The highest capital gains in beachside areas were seen in Western Australia, which “dominated the list of top coastal suburbs”.
Over half of the top 20 suburbs were located on the West Coast, with some areas of Mandurah, south-west Perth and Bunbury seeing 12-month gains of up to 28 per cent.
“The performance of those with the largest gain and the highest growth rates are not the glamorous hotspots that rose to prominence during COVID,” said Mr Lawless.
Instead, he emphasised that cost-of-living concerns were the top of buyers’ priority lists, with “markets that offer a combination of value and lifestyle attributes” outperforming pricier areas.
He stated: “Suburbs in areas such as Western Australia and more northern regions of Queensland where it’s still possible to make a seachange for less than $1 million were the strongest performers last year.”
“Although home values in these regions are mostly at record highs, they remain relatively affordable for seachangers selling out of more expensive metro markets.”
Not all coastal markets in regional Australia performed well – some suburbs, particularly in NSW, saw drops from their COVID-19 highs.
Suburbs like Brunswick Heads and Byron Bay saw prices fall up to 8 per cent over the past 12 months, while the south coast towns of Berry and Dalmeny saw home values drop over 40 per cent from their COVID-19 highs.
“Arguably these markets overshot the mark of what could be considered fair value through the worst of the pandemic, with increases in value of more than 60 per cent in some areas,” said Mr Lawless.
For those seeking to snag a seaside property, Mr Lawless suggested that Ceduna in South Australia and Wongaling Beach in Far North Queensland are hidden gems that still offer good value for money, with median home values still under $300,000.
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