Buying boat moorings, marinas and berths: “There’s a kind of housing crisis on Sydney Harbour"
Marina berths are a valuable resource along Australia’s sparkling coastline, with some boat owners waiting up to a decade to secure a prime position.
Berths around iconic Sydney Harbour and along the Gold Coast’s glittering waterways are highly sought after, where prices can range from $500,000 to $1.5 million, Ray White Marine chief executive Brock Rodwell says.
“They are liquid gold, and they’re very scarce, especially in markets like Sydney Harbour, where we’ve just got a lot of sites that are underutilised, such as old navy bases and slipways that haven’t been revitalised,” Rodwell says.
“There’s a kind of housing crisis on Sydney Harbour.”
If you own a boat, it needs a home. There are almost 1 million registered vessels in Australia, and one in 10 people holds a boat licence, according to the Boating Industry Association, making a waterfront property with a private jetty or berth a coveted asset.
Buxton Mornington Peninsula agent Ben Everist says trophy homes in Sorrento and Portsea with moorings or jetties tend to be kept within families. “They don’t come up for sale very often, but when they do, they’re in demand,” he says. “There have been some properties in the past where the owners have gone down the path of selling the home but keeping the berth.”
The valuation of a berth or mooring depends on length of tenure, amenities and comparable sales.
They can also make good investments, as there is a market for renting them out to other boaties. This had been on the mind of prospective buyers of a waterfront townhouse at 9/30 St Malo Avenue in Sydney’s Hunters Hill, marketed by BresicWhitney’s John Grayson. The property, which recently sold for $5.84 million, features a 12-metre berth, offering deep-water access to the Parramatta River and Sydney Harbour.
“There are the lifestyle buyers – boating enthusiasts who want their vessel at their doorstep and appreciate the ultimate convenience – but [we also saw] interest from those who recognise the value and flexibility that a berth provides, whether that’s leasing it out for income or simply having the option for the future,” Grayson says.
If your home doesn’t come with its own berth, the next best thing is a slot in a marina. Lengthy waiting lists in established suburbs, such as Vaucluse Bay and Point Piper, are common. The wait for a berth at a commercial marina in Sydney can be five to 10 years, he says.
But can you own a body of water? There are two types of arrangements to purchase a berth: leasehold and freehold.
Leasehold berths are on crown land, such as natural seabeds and riverbeds. The government leases the site to a marina operator or sailing club, which then subleases to boat owners on renewable terms of 10 to 100 years.
Freehold berths are owned outright – the buyer acquires the title, similar to a house. These may be in artificial coves or inlets, and an owners’ association or operator manages the upkeep.
An advantage of the Hunters Hill property is the berth’s exclusive leasehold arrangement, which is attached to the townhouse’s title. “This means it transfers automatically with the property and provides long-term security for the owner,” Grayson says. “Properties where the berth is integrated with the residence offer convenience and immediate access you simply can’t replicate elsewhere.”
The management of residential jetties varies between states and land-use classifications. Councils and statutory authorities, such as Parks Victoria on the Mornington Peninsula, may share a maintenance role if your jetty sits in public waters.
Since being cooped up during the COVID-19 pandemic, owners want to spend more time aboard their boats. Grayson says the passion for boating increased during the lockdowns, and that has not ebbed. “It’s about spontaneity and freedom, deciding over breakfast to spend the day on the harbour,” he says.
There has also been an increase in those living on their vessels, Rodwell says, not just spending their weekends on them. Private marinas are catering for this by getting bigger and better.
The benchmark for marina luxury is on the Gold Coast. The $300 million Mantaray development on Main Beach will feature 24 large apartments and a superyacht marina with 67 berths, overlooked by a members-only “water lounge”. Two sub-penthouses sold to separate Sydney-based families last year for $17.5 million each.
Boat owners have expectations that Australian marinas will provide the level of quality they experience in the Mediterranean and the Bahamas, Rodwell says. “The larger end of town wants a concierge to look after their catering and laundry, and make sure the crew are fit, with a fully-equipped gym. You’re seeing resort-style facilities being integrated into these marinas.”
Rodwell says clients who are weighing up whether to own or rent a berth need to decide how long they will use it. “If you vacate the berth or you sell your boat, one of the first questions I get asked is, ‘Can you fill it for me so it’s not empty space?’” Rodwell says.
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