Road projects bring the surf and city closer

Written by Greville Pabst
CEO, WBP Property Group
 

As the weather heats up so too do buyers’ appetites for holiday and recreational property located along Victoria’s coastline.

Historically, the spring and summer seasons produce a rise in transaction and enquiry levels from buyers looking to capitalise on the lifestyle and capital growth prospects of coastal real estate. However, following the falls in the holiday market in late 2008 many buyers remain uncertain about the security of this property segment.

But whether you’re buying for investment purposes, for permanent residency or as a holiday retreat there are several ways to ensure you maximise your investment with coastal property.

When buying holiday homes buy property with water views and those within close proximity to beaches. Traditionally, properties offering these advantages outperform the general market, assisted further by stringent environmental and planning regulations, which restrict the supply of new coastal properties. With only a limited supply and a strong growing demand properties offering these features consistently perform better.

While these kinds of properties often sit within the higher price bracket those looking to purchase more affordable property should buy close to local shopping facilities and community amenities. Also, don’t hesitate to sacrifice quality for location and aspect. After all, it is the lifestyle offered by the location that determines the appeal.

When buying holiday property for investment purpose be aware that although holiday rental properties benefit from significant demand during peak periods they generally offer significantly lower returns through off-peek seasons when compared with city locations. This trend, however, is beginning to change with the support of flexible work choices enabling many buyers to permanently relocate to coastal areas.

This trend of relocating continues to gain momentum as new residential estates in the Geelong area such as Torquay, Ocean Grove, St Leonards and Portarlington offer good value coastal property. But despite their proximity to the coast these suburbs are considered fringe areas and are located away from service facilities which may limit their capital growth prospect during the short term.

As further benefit to Victoria’s coastal property both the Geelong Bypass and EastLink have significantly reduced travel times from Melbourne, which will underpin growth in surf coast suburbs Anglesea, Aireys inlet, Lorne and Fairhaven and Mornington Peninsula suburbs Sorrento, Portsea, Flinders, Blairgowrie and Red Hill.

This article was published in the Saturday Herald Sun 12 December 2009.