BUGLE ARTICLE JUNE 2021
FAVOURABLE SELLING CONDITIONS FOR LOCALS
First National Coast and Country Real Estate has seen an increase to residential properties sold in the Kiama region over the past 6 – 8 months compared to previous years, this can be attributed in part to the exceptional increase in property values which is now prompting locals to bring their selling plans forward and sell now to take advantage of these unprecedent times.
Several articles over the past six-months had indicated increases by 20 per cent to property prices in coastal areas over the next two years, it is apparent that this increase has been extremely rapid with a 29% increase in Kiama, 27% for Gerringong and 104% in Gerroa over the past 12months. This is largely attributable to Sydney buyers looking to relocate to less populated locations and the flexibility to now work from home. Buyers are seeking larger properties, coastal locations and less populated areas. Major infrastructure works, including the $400 million Princes Highway upgrade, resulting in improved commute times makes the transition from city to coastal far more desirable than previously.
OUR LATEST PROPERTY MARKET STATISTICS
The interest in the Kiama region remains high with values increasing over the year. Over the past three months in particular, clearance rates have increased with the average property on the market for less than three weeks. We are continuing to see realistic asking prices being exceeded regularly as buyers seek to quickly lock-in suitable properties.
Our rental market continues to remain exceptionally strong with properties being leased quickly following advertisement. The figures below show the current house and unit values, increase percentage to median house and unit price and an overview of the number of properties sold in the past 12 months.
RENTAL MARKET UPDATE
First National Coast & Country
The trend in rents has remained positive across most regions and housing types, but growth conditions have eased a little over recent months, according to CoreLogic.
Generally, the first quarter of the year is a seasonally strong period for rental markets, so the easing in rental growth is unsurprising. The monthly increase in capital city dwelling rents has eased from an average of 1.0% over the March quarter to 0.6% over the past two months. Similarly, the rate of growth in rents across the combined regional areas of Australia has eased back from an average of 1.4% in the March quarter to 1.0% through April and May.
Weakest rental conditions in Sydney & Melbourne
Sydney and Melbourne are still recording the weakest rental conditions, especially across the unit sector where closed international borders have had a more significant impact on tenancy demand. Whilst Sydney house rents are up 2.0% over the past three months and unit rents are 1.8% higher, unit rents remain -7.5% below their 2018 high and are -3.0% lower over the past 12 months. Melbourne rental conditions have been softer, reflecting larger exposure to overseas migrants. House rents are up 0.9% over the past three months while unit rents are down -0.4% remaining -8.5% below their 2019 peak.
The local rental markets remain strong, where rents have surged on the back of tight supply and rising demand, with only 24 properties for lease in the Kiama areas, 7 properties for lease in Gerringong and Gerroa and 2 in Shoalhaven Heads. On average, houses in Kiama rent out for $575 PW with an annual rental yield of 2.6% and units rent for $500 PW with a rental yield of 3.6%. In Gerringong, on average houses rent out for $578 PW with an annual rental yield of 2.7% and units rent for $555 PW with a rental yield of 4.1%. In Shoalhaven Heads on average houses rent out for $520 PW with an annual rental yield of 3.5% and units rent for $385 PW with a rental yield of 4.3%. The rental market has steadied, however we are still seeing prices holding with people continuing to move out of the city suburbs, chasing the relaxed coast lifestyle, working from home and travelling to the office a few days a week.
High quality commercial properties and development opportunities are rare in the Kiama region, particularly those sought after zoning.
First National Coast and Country have three such opportunities on the market.
Two of these properties are located in Gerringong; central to the central business district on Fern Street and Belinda Street.
The other property is located in Central Kiama; located in the heart of Kiama’s main shopping area.
With shops, cafes and commercial offices nearby to each of these three locations, each of these properties offer investors and owners long-term opportunities for income and capital growth.
A big thank you to all of First National Coast and Country Real Estate supporters who voted for us in the Illawarra & South Coast Local Business Awards.
At First National nothing gets in the way of you and your needs. Whether you are buying or selling, you will always be treated as our top priority.