Weekender Becomes A Reality As Buyers Recover Their Nerve

Sun Herald

Sunday January 15, 2006

By MICHELLE SINGER

STRONG coastal holiday sales and rentals during Christmas and the new year has seen the property market bounce back from last year's downturn.

Popular holiday areas north and south of Sydney are recording a resurgence in inquiries, resulting in a number of sales since the beginning of December.

Real estate agents along the state's South, Central and North coasts have reported strong rental and sales figures for the holiday period, despite initial nervous expectations.

Raine and Horne Kiama sales manager Peter Ward said sales had picked up substantially on last year's figures to return to what is generally considered "a strong January".

"We have been nervous in the past year or so about how things would go," Mr Ward said. "But inquiry [numbers have] been really good and producing sales."

The level of interest in Kiama, a seaside town 90 minutes south of Sydney, had led to price falls of between 10 and 15 per cent since the introduction of the vendor tax in June 2004.

The lack of investor dollars coming into the area "hurt" Kiama badly and caused the first drop in prices that he had seen, Mr Ward said.

However, interest had picked up as people believed prices would not fall any further.

Further south, Callala Bay First National principal Joanne Hindmarch agreed that sales in the last part of 2005 had been strong.

Sydneysiders had bought into the top end of the market, while the lower price bracket had appealed to locals upgrading and middle income earners looking for a weekender.

"We had a great 2005, especially for waterfronts," Ms Hindmarch said. "We sold eight waterfront properties and set price records in Callala Bay, Currawong and Culburra.

"The lower price bracket, around $300,000, has also seen a lot of activity, especially at this time of year as people look for holiday homes."

Ms Hindmarch said $300,000 would buy a two- or three-bedroom single-storey cottage in a street back from the beach, but with the water still within an easy 400-metre walk.

Strong prices and fully booked holiday accommodation indicated the area was still being "discovered" by many of the tourists coming through, she said. More than half the office's sales were "lifestyle investment properties".

"More people are coming south each year with our holiday rental income steadily increasing 25 per cent each year," she said.

"It's still considered affordable and a good option compared to driving the same distance north, even for the beachfront properties."

The Hawkes family from Bossley Park in Sydney's south-west considered buying coastal property 10 years ago, and finally realised their dream last year when they bought a two-storey house a couple of streets back from Callala beach.

Christine Hawkes, husband David and their three children Isabella, 11, Cameron, 9, and Gemma, 3, spent the school holidays in the house.

"We looked up the North Coast but eventually settled here because it's nice and safe for the children," Mrs Hawkes said. "It doesn't get really hot at Christmas and it's quite unspoilt around here with the bush and the beaches.

"When we first started looking about 10 years ago we really should have purchased then but we got quite a good deal and we already believe it's gone up in value."

They have been coming to the area every other weekend since buying the house just over six months ago.

"The beaches are really quite pristine - you don't have any pollution and there's white sand everywhere," Mrs Hawkes said.

The Central Coast hot spots this year are North Avoca and Wamberal. McGrath Estate Agents Central Coast principal Mat Steinwede said an increase in sales and inquiries in the past two weeks was evidence the market had improved.

"It seems to have kicked in after slowing down at the end of last year, when people seemed to just tire of it all," Mr Steinwede said.

Many of the sales came from local residents upgrading but the number of Sydney buyers was as "strong as ever".

"People are investing in houses rather than townhouses for a weekender and people in the 40 and over age group are moving up here for a lifestyle change," he said.

Elders Port Macquarie sales manager Steve Newman said despite a 10 to 15 per cent drop in house prices the area still had developer and therefore investor confidence.

"Prudent investors see there are opportunities," he said. "Our inquiries have been quite strong but I don't think we'll see the full effect until after these holidays, as people return home and do their research and work out their finances."