Coastal areas continue to drop in value, offering a scary proposition for investors who want to take advantage of sea-changer and tourism opportunities.
New figures from RP Data have revealed that the 10 largest coastal regions in Australia now sit well-below historically high values experienced prior to the GFC.
RP Data research analyst Cameron Kusher attributed some of the poor performance to a levelling off of population growth, pointing out the number of people moving to coastal areas had dropped.
“A slowdown in migration has had a negative impact on market conditions,” he said.
Across the states, performance varied with far-north Queensland reporting a major decline, while coastal NSW, including Port Macquarie and Coffs Harbour, saw a slight increase.
Kusher also highlighted a disparity between the value of detached housing and units, the latter showing more fluctuations.
“This result… can broadly be attributed to the downturn in demand for holiday apartments, downturn in the tourism sector of the economy and overbuilding of units in some areas,” he said.
