Weekender market on an upswing

by Mackenzie McCarty28 Dec 2012

The weekender market appears to be experiencing a slight revival, as bargain prices and strong rental returns encourage buyers to consider a second home.

Figures from the Australian Property Monitors show a price growth in some seaside villages compared with the same time last year.

There were 54 sales in Callala Beach this year, for instance, compared with 41 last year – and more of them were above the $1 million mark.

Tod Gallant of Hyams Beach Real Estate told Sydney Morning Herald reporter Stephen Nicholls that properties in the exclusive area have seen a sales jump as well – 12 compared with just five last year.

“Properties are turning over but it’s just that the prices aren’t what they used to be. Holiday bookings are as strong or a bit better, but the demographic is changing…some who used to come are doing the overseas ski holiday instead.”

He says a two-bedroom unit with ocean “glimpses” in Coral Street was attracting a lot of interest, primarily because of its $185,000 price tag. A report from Australian Property Monitors shows it previously sold for $345,000 in 2004 and was being rented for $300 a week – but as a holiday rental, it had reached $585 back in 2007.

Australian Property Monitors senior economist, Andrew Wilson, says holiday home sales are closely aligned to the prestige market, which has been “very subdued” in recent years. But he says there are now signs of price growth “from a low base.”