Coastal areas continue to drop in value, according to the latest property statistics from RP Data.
It found the 10 largest coastal regions in Australia are “now sitting well-below historically high values” experienced prior to the GFC.
RP Data’s research analyst Cameron Kusher claimed the number of people moving to coastal areas had dropped “significantly.”
“A slowdown in migration has had a negative impact on [these] market conditions,” he said.
Across the states, performance varied with far-north Queensland reporting a major decline, while coastal NSW, including Port Macquarie
and Coffs Harbour saw a slight increase.
Kusher also highlighted a disparity between the value of detached housing and units, the latter showing more fluctuations.
“This result is due to different factors across certain markets but can broadly be attributed to the downturn in demand for holiday apartments, downturn in the tourism sector of the economy and overbuilding of units in some areas,” he said.
The issue of domestic tourism was highlighted earlier this month, with increased arrears occurring in coastal towns.
Nelson Bay in NSW was highlighted as the worst postcode for arrears. Local broker Ben Eick confirmed to Australian Broker Online a lack of holidaymakers was a key factor.
“The rental market up here isn’t especially strong, as opposed to other areas that are driven by the mining industry further up the valley.
“It can have a direct effect on whether they can pay their mortgage,” he said.