Coastal Playground Draws Buyers
The Age
Wednesday January 18, 1995
Victoria's south-west coast is the drawcard for many holidaymakers who eagerly check prices for house and land bargains. Although bargains exist, the area is highly prized and remains relatively expensive, reports Antony Catalano.
FROM the historic township of Queenscliff to the spectacular surf coast from Torquay to Apollo Bay to the breathtaking natural formation of the Twelve Apostles along the rugged coastline from Cape Otway to Warrnambool, Victoria's south-west coast is a haven for holiday makers.
Each year thousands head to the coast to sample some of its wonders, including its world-renowned surf beaches. Others enjoy relaxing in rented accommodation with stunning ocean views, while others will sit and enjoy the relentless pounding of the waves.
For thousands of teenagers and young adults it's the permanent annual retreat where camping, surfing, and endless summer nights are spent partying.
From mid December to the end of January the mood is definately laid back, and the only ones likely to raise a genuine sweat from any hard work are the real estate agents.
It's that time of year when tourists become potential ratepayers and the activity among the coastal real estate firms turns decidedly frenetic as agents try to cope with the hundreds of inquiries from prospective buyers seeking a weekender or beach house to those considering a quiet coastal retreat for their retirement.
At a time when many get a chance to think about quality of life, it is not surprising interest grows in owning a holiday home that offers a chance to get away from the stresses of the city to recharge the batteries.
Like the Mornington Pensinsula, the south-west coast is turning up the heat and it is at this time of year that the best of the properties are offered for sale.
Unlike the Mornington Peninsula there is very little likelihood of many million dollar sales for luxury beach houses. Several properties are likely to sell for more than $500,000, but the norm along much of the coast is in the under $200,000 range.
Vendors in Ocean Grove, Torquay, Aireys Inlet and Lorne now appear more willing to sell, having held on to their properties for the past two years as property prices recovered from the slump in values through 1991/92.
More properties on the market is good news for buyers whose biggest frustration will now be making a decision about which property to buy.
The large selection is not likely to cause any noteable increase in property prices, but agents generally agree the ecomony, which is growing steadily, is likely to produce more buyers than at any time in the past two years.
The interest, they predict, will mainly come from the leisure market people seeking a comfortable weekender who are unlikely to be too worried by interest rate increases of one or two per cent predicted for the first half of 1995.
Most of the coast appeals to what agents refer to as the ``cashed- up leisure buyer", but all agree today's potential buyers are become increasingly more astute about the market.
Agents remain quietly optimistic about 1995 and will be looking closely at auction activity this weekend as an indication of what the rest of the summer has to offer.
Properties from Queenscliff to Ocean Grove are being offered as low as $79,000, while others are tipped to fetch more than $300,000 but, in general, $130,000 will buy good real estate.
Torquay, which has long been a favorite for those escaping the city, is showing strong signs of continued improvement with record attendances at recent auctions.
From Aireys Inlet through to Lorne local agent Ken Smyth says property prices are likely to remain relatively stable but predicts the ``buyers market" should result in good turnover.
``The inquiry level has certainly increased dramatically and therefore we're selling, but prices are staying fairly stable," Mr Smyth said.
Lorne, which is to the west coast what Portsea is to the Mornington Peninsula, has shown steady improvement over the past two years and should provide a good indication of buyer interests when a number of top-of-the-range properties go on the market over the next two weekends.
The auction of a century-old homestead and a Great Ocean Road property at nearby Eastern View are seen as the real test for the market.
At Apollo Bay, Mr Ken Redford, of Thomas, Joyce and Sears, says property prices have not reflected increases in business turnover and says there was a noticeable slow down in activity even before interest rates were raised.
Describing it as a ``very advantageous market for buyers", Mr Redford said large numbers of properties on the market meant buyers were being handed an open invitation to negotiate hard to snare properties at good prices.
Despite that, all agents agree potential buyers who think they have the advantage will find vendors who have waited up to two years to put their properties on the market and will continue to hold on for the right price.
``There is plenty of money around here and people are not going to give away property now," Mr Smyth said. ``Even during the worst of the recession we probably had only four of five stress sales during 1991/92."
© 1995 The Age
