The Australian South Coast is the narrow coastal belt that stretches from Sydney to Victoria. It is a region under the state of New South Wales. You will find the coastal incline of the Southern Tablelands at its west while its east is the Pacific Ocean coastline. While it can be said many cities in Australia are experiencing a brutal property downturn, a lot of areas in the South Coast are bucking the gloomy trend.
What is it in the South Coast that is helping prop up the real estate market?
When you talk of Australia, what are the things that come to your mind? Perhaps, spectacular wilderness, kangaroos, koalas, white sand beaches, and many more, right? Well, the South Coast area offers that and more. Fun adventures, delectable food and wine, plus a plethora of things to do which include tours to see whales, seals and dolphins. There are even unspoiled waterways where residents and tourists alike can go kayaking. For those with fearless spirits, there are spots to go rock climbing and enjoy spectacular views. It is possible that these features help sustain the real estate market in this area.
Aside from the rich features of the South Coast, experts say it is experiencing renewed interest from various sectors, particularly retiring baby boomers. Younger families who are also making a lifestyle decision to leave the hustle and bustle of Sydney are seen to be also fueling this renewed interest. This is perhaps why despite the gloomy outlook of the property market elsewhere, property values in the South Coast have been rising.
Affordability is Key
Another driver of this upward trend is the affordability of rental properties in the South Coast area. Compared to Sydney, the price points are lower with stronger yields. Despite these positive developments, property experts are advising investors to do proper research on the South Coast local market. While price points may be better than those of Sydney, it should be noted that every market has its own particular drivers. Furthermore, aside from the yields, there is also a need to check on the vacancy rates. These factors, combined with physical aspects, can help generate a better picture as to the needed capitalization and its return on investment.
The South Coast Real Estate Market
Rental property prices in the South Coast area vary and would always depend on the property’s location. For instance, the Malua Bay on the New South Wales south coast is found to be among the highest-yielding suburb with an advertised weekly median rent of around AUD$1,300. According to official data, rental properties usually start at AUD$600,000 with an estimated yield per annum of around 6%. Experts also say that it has a potential capital growth of 8% or more with completion upside of up to 30%.
It is hard to say whether such a positive outlook on the South Coast real estate market will be impacted by Brexit. For now, the real estate market in the South Coast area appears to remain stable and vibrant. Property analysts are hoping it will remain that way long after Brexit date has passed.