Coastal properties enjoy strong growth in real estate prices

SOUTH Australia is bucking a national trend by recording strong growth in coastal real estate prices, latest figures show.

While east coast locations like the Gold Coast in Queensland recorded price falls of 5 per cent, popular seaside sites in this state are seeing a surge in house values, according to real estate sales analyst RP Data.

Last financial year many regional coastal areas "experienced a set back" in house prices, RP Data said, with the Sunshine Coast and far north coast in Queensland also falling 5 per cent and the Illawarra area in NSW down almost 3 per cent.

RP Data research analyst Cameron Kusher said falls in tourism and a slowdown in migration had contributed to the decline in property values in these areas.

In contrast, North Beach and adjacent Wallaroo on the Yorke Peninsula saw prices jump by 28 per cent and 23 per cent respectively.

Whyalla and the outer Adelaide suburb of Port Willunga also recorded 17 per cent increases in house prices last financial year.

The Real Estate Institute of SA said this state's coastal regions had been undervalued "for quiet some time" compared to the eastern states and southern WA.

"And metropolitan coastal areas have shown good growth in the past five years but those areas further out have been undervalued," institute president Greg Moulton said yesterday.

The popularity of owning a holiday shack and the demand from baby boomer investors looking for a sea change were among the factors driving sales in coastal areas, Mr Moulton said.

Source: http://www.heraldsun.com.au/news/national/coastal-properties-enjoy-strong-growth-in-real-estate-prices/story-fndo471r-1226473433670