The affordability of housing and a more relaxed lifestyle in Merimbula is attracting the interest of major city buyers who have been priced out of their local area, but can afford to cherry pick the NSW regional market.
According to a recent report in The Daily Telegraph the Sydney property clock is at the top of the price cycle. “Valuers Herron Todd White have warned that Sydney’s property boom is into its dying stages, with a national property clock showing prices have peaked and may soon fall.”
The median Sydney house price has risen by $200,000 in just 3 years to $786,000 Q1 this year. While according to Realestate.com.au the average Merimbula price of just $465,000 means affordability is now driving the area’s housing market.
And it’s not just home buyers looking for a better deal . With the Far South Coast an “underperformer” in terms of the NSW market overall, that affordability and a higher rental yield of 5%,compared to Sydney’s 3.9%,is catching the eyes of investors as well. Capital growth in the area is set to increase while investments in Sydney sit at the “top of the clock”.
In the last decade the Far South Coast median house price has increased from $325,000 to $375,000. That’s 15% capital growth in 10 years. Last years growth sat at 8.8% and although it is down marginally so far in 2015, real estate analyst Andrew Wilson from Domain.com is predicting a moderate price growth of 5%.
It’s the knock on effect of the real estate cycle for NSW with Sydney nearing its peak prices and an expected “flattening” of the market. But the same is not true for Merimbula. In fact the property market cycle here has just come through the bottom of the curve, past the last peak and prices are on the rise.
Another driver for the local market are the so called “ripple effect” purchasers. A buyer who can’t afford Sydney prices moves to Wollongong, pushing a Wollongong buyer further south to Nowra etc. until they reach the Far South Coast. Of course retirees have always been attracted to the area, but now even more so with the them being able to get a lot more “bang for their buck” after selling the family home in the city.
Seller, buyer or investor it’s a good time to get into the market, upgrade your home or find a great investment property in Merimbula. Give the team at Fisk and Nagle First Choice a call.
Contact David, Robert, Kym or Chrisi from Fisk and Nagle Real Estate today on 02 6495 4545.