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Sydney sea and green changers are driving up spring demand for regional and coastal real estate in NSW, according to Raine & Horne.
Executive chairman Angus Raine said that Sydney downsizers were underpinning value in the Southern Highlands, the Central Coast and the South Coast of NSW.
“Towns such as Gosford, Bowral and Ulladulla offer real estate prices that are significantly below the Sydney median, while rental returns between 4 per cent and 5 per cent compare favourably against those generated by investment properties in the capital city,” Mr Raine said.
“These robust population and services hubs appeal to downsizers because they can deliver quality healthcare facilities, employment, diverse economies, and comfortable and affordable lifestyles.”
Sought after
Principal of Raine & Horne Gosford Geoff Tilden said that downsizers would be a “significant” factor in Central Coast real estate markets this spring.
“Gosford is an area traditionally sought after by retirees, and this has always driven demand for downsizer properties on the Central Coast,” the principal said.
Mr Tilden said that about 40 per cent of the enquiries received by Raine & Horne Gosford were from downsizers, with around 50 per cent looking to relocate from Sydney.
“Many empty-nesters hail from the Upper North Shore and the Hills District, and the affordability of the Coast means they can enjoy a substantial release of equity in their Sydney homes.
“Nevertheless, it’s still possible to secure a modern two-bedroom apartment in Gosford, featuring amenities such as lifts, gyms and swimming pools, for under $600,000.”
By contrast, the principal said that the median house price in Willoughby on Sydney’s North Shore is over $2.3 million, while it’s almost $1.6 million in Castle Hill in the heart of Sydney’s Hills District.
Cashed-up
Principal of Raine & Horne Southern Highlands Matthew Anstee said that spring is in the air in NSW’s famous Southern Highlands, with many owners preparing their homes for a sale.
“Real estate markets across the Southern Highlands have not recorded falls in values because we have strong demand for properties in this region from cashed-up Sydney buyers,” Mr Anstee said.
“Around 95 per cent of our buyers are downsizers from Sydney aged 55 or older.”
He said that many of the downsizers were moving from Sydney’s Hills District.
“While prices in Sydney are plateauing, we’re still seeing plenty of downsizers from the Hills District selling up a Castle Hill or Baulkham Hills house for $2 million and buying a very nice property in Bowral, Mittagong or Moss Vale for $1.2 million.”
High-end
Principal of Raine & Horne in Mollymook Ben Pryde said that real estate markets on the South Coast of NSW should enjoy a “robust” spring season.
“On the first couple of weekends of September we had good results, especially for properties priced at the higher end of the market,” Mr Pryde said.
“It seems that buyers from Canberra are propping up activity and prices in Mollymook, Milton and Ulladulla.”
He also said that Sydney sea changers continued to make their presence felt.
“Sydney retirees are biting the bullet and selling for a bit less than 12 months ago and moving to our region to retire. They recognised that after the strong run the Sydney market had, they are still well up financially and that they can get plenty of real estate value in this region.
“We’ve settled into a more normal market where there will be some value for buyers and sellers this spring.”
He said that downsizers were buying South Coast properties valued between $700,000 and $1.5 million.
“This is a relatively wide range because the properties that retirees are buying in this region depends on where they lived in Sydney and the prices they achieved for their former family homes.”
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