Many Australian home buyers are craving a lifestyle change after COVID-19 lockdowns, with new housing markets in coastal areas seeing an uptick in interest as a result.
Aussie house hunters have been increasingly opting for coastal living for some years now, but the trend has become more robust during the pandemic with remote working making it easier to spend more time away from the big smoke.
The REA Insights Regional Australia Report revealed that beachside property markets were among those that benefited the most from shifting working conditions during 2020. New home hotspots are no exception.
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Aussie house hunters are flocking to coastal regions post-pandemic, with new home markets seeing a surge in interest. Picture: Getty
Chief economist at realestate.com.au Nerida Conisbee said increased interest in coastal markets is coming from a range of buyer groups.
“When we look at buyer demand in the house and land categories in places like regional Victoria, New South Wales and Queensland, you see a lot of upgraders and young families looking for more space and moving out of the capital cities to get it at a more affordable level,” Ms Conisbee said.
“For the unit market, there’s likely to be a lot of activity from people looking for second homes. Holiday homes in beachside areas would be a significant market.”
From March to September 2020, the regions that saw the greatest change in views per listing on realestate.com.au were beachside locations within commuting distance to CBDs, such as Queensland’s Gold Coast region and Geelong in Victoria.
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Coastal regions have seen a surge in buyer interest since March 2020. Picture: Frasers Property Australia
Ms Conisbee said while living in a regional area has become more of a proposition through remote working, most people still need access to CBD offices.
“People will continue to work more flexibly [post-COVID], but even if they don’t go into the office every day they will likely have to go in a few times a week,” she said.
New home buyers are chasing the sun
Recent data from the Australian Bureau of Statistics has revealed people are moving from capital cities to regional areas in record numbers. Movement from southern states towards Queensland had also increased.
This trend has led to increased interest in Queensland new housing projects, particularly from buyers in New South Wales and Victoria, according to Jo Prince-Gillies, head of projects, Queensland, at McGrath Projects. She said there’s also been a jump in interest from overseas buyers.
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Habitat Twin Waters on the Sunshine Coast is getting lots of attention from interstate and overseas buyers. Picture: McGrath Projects
“We have noticed a definite increase in enquiry and sales across our entire portfolio with strong interest for our Sunshine Coast projects in particular,” said Ms Prince-Gillies.
“We have tracked enquiry from not only Sydney and Melbourne, but also overseas destinations. Enquiries have resulted in a number of sales to expats residing as far afield as New York and Dubai.”
Government incentives are also providing a boost
While Geelong in Victoria was already seeing increased interest from Melbourne buyers pre-2020, it has surged following new government incentives for off-the-plan buyers during COVID-19, according to Jim Cross, principal at McGrath Geelong.
The federal government’s HomeBuilder scheme and the Victorian government’s new stamp duty relief measures are incentives for buyers to consider a new home over an established property. Record low borrowing costs and Victoria’s first-home buyer grant for regional buyers of $20,000 are also boosting Geelong’s new home market.
Cashed-up Melbourne home buyers are being drawn to Geelong projects, such as Balmoral Quay. Picture: realestate.com.au/buy
“We have definitely experienced an increase in buyer demand in the Geelong region throughout 2020,” Mr Cross said.
“New properties being constructed in the Geelong region have benefited from government-funded first-home buyer grants, stamp duty discounts, grants for buyers signing new builds and regional government grants for eligible purchasers.”
New home buyers are also seeking an e-change
It’s not just the desire for a sea change that is driving people towards new homes in coastal areas. An increased awareness of environmental and sustainability issues is also a key driver.
Marie Pearson, sales team member at The Cape development at Victoria’s Cape Paterson, said remote working has enabled people to embrace a green lifestyle and new homes are leading the way in terms of energy efficiency.
The year 2020 has offered the perfect opportunity to embrace a sustainable lifestyle. Picture: realestate.com.au/buy
“The Cape has seen a strong increase in demand for sustainable, energy-efficient, high-quality coastal housing within two hours of Melbourne since COVID,” said Ms Pearson.
“Many people are moving from Melbourne to live in idyllic coastal environments seeking the best the coast has to offer – clean air, beach access, relaxed lifestyle, low energy bills and high-speed NBN for the ideal modern connected coastal lifestyle.”
Will the coastal shift continue?
Ms Conisbee said it is too early to know whether the trend towards coastal living will continue.
“Even though there has been a lot of population movement and interest in these parts of Australia, whether it continues we don’t quite know at this stage,” she said.
“It will depend on how much people have pulled back onto the office. I think it will reduce a bit of activity in areas that aren’t within commuting distance.”