House prices in coastal areas have dived by up to $1.12 million, opening an opportunity for more Aussies to buy a weekender or holiday home.
New data shows the suburbs most affected by a peel back in prices are on or close to the water in Queensland or New South Wales, due what analysts call a “reverse sea change” unfolding in the market. In a couple of cases in the top ten, it is has pushed the median to under $500,000 in lifestyle destinations.
Sunshine Beach on the Sunshine Coast, the house price has declined from $3.5 million to $2.38 million – a dip of $1.12 million. In Minyama, also on the Sunshine Coast, the median has descended by $665,000.
National real estate agency Ray White crunched the numbers and found the top ten postcodes where house prices have gone backwards the most over 12 months are North Lismore, Dunbogan, Lismore, Minyama, Sunshine Beach, South Kempsey, Alexandra Headland, Lightening Ridge, Cumbalum and Berry.
National data showing the suburbs where house prices have dropped the most over 12 months, dominated by sea change destinations. (Ray White Group)
The reduced appetite to own a
beach house has been shaped by reforms to short-term letting rules, and the challenges of servicing a mortgage after 14 interest rate rises, Ray White’s data analyst William Clark found.
We see from the list that coastal suburbs have been heavily affected with a reverse
sea change occurring,” Clark said in the report.
“Interest in having a holiday home surged during the pandemic but with rising interest rates and growing restrictions on short-term rentals, this is a luxury that few can afford.
“As a result, prices are declining in these areas, particularly in parts of the Sunshine Coast and coastal New South Wales.”
In North Lismore, house prices have been shaved by 43.8 per cent, dipping from a median of $480,000 in 2022 to a new median of $270,00, according to Ray White’s own results data, which has topped the list.
The region was ravaged by floods in 2022, and this had a bearing on house prices, including in South Kempsey.
“And while it has been over 18 months since the waters receded, it looks like those who were left with homes in a marketable condition had to walk away with potentially more than 40 per cent losses on sales, or over a $200,000 loss on their net wealth for the median sale,” Clark said.
Lightening Ridge in outback New South Wales, north west of Sydney, is one of the last opal mining towns, but it has been down on its luck in the real estate sector, with a 25 per cent house price slide.
Clark said that although the top ten is dominated by holidays towns, it does not paint the broader picture.
“While many holiday home towns and some select mining towns have seen declining prices, it isn’t consistent across the board,” he said.
While some selected
Sunshine Coast suburbs have seen declines in prices, across the region, prices are back where they were during the 2022 peak.
“In Western Australia, green energy minerals are pushing up values in places that have previously been very low in growth. It is likely that in 2024, we will be looking at quite a different list of suburbs.”