AFFORDABLE OCEAN FRONT PROPERTYProperties within suburbs which enjoy ocean frontage have traditionally been viewed as a ‘safe haven’ for property investors. These properties are generally met with strong demand and due to the limited supply there has traditionally been no shortage of buyers.
The common belief that waterfront property is a safe haven changed dramatically during 2008 with some of the nation’s best known waterfront areas witnessing a sky rocketing number of listings, heavy discounting in order to sell and few buyers. This phenomena was largely due to the global financial market falls which saw some highly geared individuals suffer margin calls. Cuts to executive bonuses were also witnessed which saw many have to sell their non-core assets and in some cases even sell their luxury family home.
Some reports suggest that in the worst cases, vendors have had to discount up to as much as $1 million in order to sell their lavish waterfront properties. In spite of this, if buyers look to the regions, affordable properties can still be found in oceanfront locations throughout regional areas of Australia. Throughout the country, Port Pirie West is the most affordable regional seaside suburb with a current median house price of $140,000, in comparison the nation’s most expensive seaside suburb is Tamarama in Sydney where median house prices sit at $4.4 million.
NSW
Across NSW the most affordable regional oceanfront suburb is Corindi Beach, approximately 29km north of Coffs Harbour with a current median house price of $272,500. Interestingly four of the five most affordable locations detailed in NSW are found on the Mid-North Coast. Just like the better established and more expensive oceanfront areas, most of the suburbs have recorded a long average time on the market.
Source: rpdata property pulse
