“Those that may have not wanted to buy a holiday home are changing their mind, as they can’t see themselves travelling overseas for some time.”
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Alexander First National Real Estate sales manager Regan Alexander agreed, saying while COVID-19 had caused prices to rise in Bright and surrounds over the past year, it was also people’s ability to holiday in the area that had boosted sales.
“It’s one of the key factors that drives prices here,” Mr Alexander said.
“Obviously, we are an extremely popular tourist destination, so people are always thinking about how they can make money during the peak season.”
He said that while huge price rises were good news for those who owned property in the area, for those looking to get into the market it had made things much more difficult.
Mr Alexander said the jump in prices meant first-home buyers would be unable to buy a house in the regional areas they grew up in.
Bright house prices rose by the biggest percentage over 2021.
“First-home buyers have really been priced out of the market in Bright, and with what’s happened in Myrtleford and Mount Beauty, where prices have also gone up,” he said.
On the Surf Coast, sea-changers have continued to move to popular suburbs such as Torquay and Jan Juc.
McCartney Real Estate director Tim Carson said the market was still strong, though more homes were now hitting the market, which could flatten prices.
“I think it will still stay pretty strong, but it will get back to a bit of normality. Prices definitely won’t fall,” Mr Carson said.
House prices on the Surf Coast, including Torquay, have skyrocketed.Credit:iStock
AMP Capital chief economist Shane Oliver said rising capital city prices had put pressure on demand for regional areas during the pandemic, but this could ease as Melbourne offices reopened.
House price rises in Melbourne, where the median hit a record $1,101,617 in December, on Domain data, would also have an impact on people’s property decisions.
“That pressure is on [regional areas] given the huge affordability problems in Sydney and Melbourne,” Dr Oliver said.
“If anything, it’s been intensified. As we eventually return to the office to some degree – maybe not five days, maybe two or three days – that may slow down the shift to regional Australia.”
House prices in Melbourne could cool as people make a choice to work from home from anywhere, economists say.Credit:Wayne Taylor
HSBC chief economist for Australia and New Zealand Paul Bloxham noted increased demand for houses in regional areas, although the effect was not as strong for tree-changers moving out of Melbourne, where prices had not risen as much as Sydney.
“There’s still quite a lot of momentum for houses in regional cities,” he said.
“Typically the big cities lead the upswing and the other cities play catch-up as people get squeezed out.”
He said some workers will have permanently shifted to a work-from-anywhere policy, allowing them to make choices about not living in the capitals.
“That might extend the support for the regional areas and cities, while [capital] cities cool.”
Figures quoted are based on Domain data from its Quarterly House Price report, released yesterday.
Regional house prices surge as Melburnians flood coastal and tree-change hotspots
Source: Philippines Alive
