Surf Coast is looking swell

For holidaymakers looking to buy their own piece of paradise, Victoria’s Surf Coast is a real estate grab bag. The townships clinging to the Great Ocean Road, from Torquay through to Anglesea, Aireys Inlet and Lorne, plus a few blink-and-you’ll-miss-them hamlets, such as Fairhaven and Eastern View, each offer a subtly different holiday experience.

For those who want infrastructure and a healthy mix of hospitality and retail businesses, there’s Lorne; for the surfers and lovers of surf culture, there’s Torquay (home to Rip Curl, Quiksilver and the annual Bells Beach Surf Classic competition). There’s Anglesea for its natural beauty, family-friendliness and proximity to national parkland and Aireys Inlet for its quiet and its killer views.

And, after a gloomy few years following the global financial crisis, when many people put owning a holiday home on the backburner, the sun is again shining on Surf Coast property prices.

In the six months to November 2015, house prices rose 11.3 per cent in Torquay to a median of $642,500, 13.6 per cent in Anglesea to a median of $694,500 and an impressive 22.4 per cent in Aireys Inlet to a median house price of $737,500. The Lorne market grew a more modest 6.7 per cent to a median house price of $888,000.

Domain Group’s chief economist, Andrew Wilson, says that unlike other holiday destinations with a fairly high, volatile turnover, the Surf Coast tends to be a tightly held market. It is seen a destination, rather than a region umbilically connected to Melbourne, as the Mornington Peninsula is.

“Sadly, we’ve seen the fires at Wye River over the Christmas break and it’s telling that the majority of them were holiday homes,” Wilson says.

According to Michael Coutts, of Great Ocean Road Real Estate, Lorne is enjoying its first significant upward swing in a decade, with 17 sales of more than $1 million since July and four above $3 million. Partly, he attributes the lift to the relative rarity of stock, which is being snapped up quickly.

“It’s all about the buyer on the coast: the willingness to purchase and to do so quickly is up since the GFC, with less stock on the market. If the market dynamic continues, the capital growth will come, although not frenetically,” he says.

One of the main drivers for the Surf Coast will be the price differentiation between metropolitan Melbourne and coastal properties, Marty Maher, of Great Ocean Properties, says.

“Although the coastal markets have been very active, we have not seen the significant capital gains that Melbourne has seen. This has a very tangible, psychological impact on buyers, as they get used to seeing what a certain dollar amount can buy in their suburb and then see what the same dollar amount can buy on the coast – and this summer we believe the coast will look cheap by comparison.”

As for who’s buying, real estate agents tend to agree it’s a mixture of people wanting holiday homes, in particular, people from bayside Melbourne; retirees downsizing on the coast; and young families seeking an affordable family home in commuting distance to Geelong rather than Melbourne.

“There’s a significant green-change factor,” Wilson says. “There are definitely Melburnians getting away from it all, which is a significant differentiation from the Mornington Peninsula, where proximity to Melbourne is seen as an advantage. You don’t get the commuter traffic, although proximity to Geelong could be a factor. People wanting a significant green-change or seachange event in their life will gravitate to the Surf Coast.”

The Surf Coast’s two bookends remain its favoured destinations, Wilson says – Lorne, for its liveliness and night life, and Anglesea, which is not only 90 minutes’ drive from Melbourne but also “remains quite fixed, because there is a real lid on development”.

Adds Maher: “The lifestyle buyer can use the new-found equity in their metropolitan home to secure a family beach house. The Baby Boomers are setting up for retirement and are taking advantage of the buoyant market and cashing in the large family home and downsizing between the coast and, often, an apartment in the city.

“The young families who cannot afford Melbourne are relocating to Geelong, the Bellarine and the Surf Coast to fulfil their great Australian dream of home ownership. As agents at the coal face, we are witnessing all these categories firsthand and while interest rates stay low, we expect it to continue.”

Cover property

5/4a Tradewinds Avenue, Lorne
$1,995,000

A five-minute stroll to the beach is just one of the many attractions of this private and serene retreat designed by architect Edgard Pirrotta​. In harmony with its surrounding environment of natural bushland with towering gums and abundant flora and fauna, the house is set on a landscaped 4000-square-metre allotment with breathtaking views of Louttit Bay, Lorne township, the point and pier. Set over two levels, the home has three bedrooms, 2.5 bathrooms, expansive decking on all sides and a huge open-plan living area. With floor-to-ceiling windows, views from every room, excellent storage and a recently completed makeover inside and out, it offers an abundance of space and privacy.

Great Ocean Road Real Estate, Michael Coutts 0438 356 624
 

Or try these

2310 Great Ocean Road, Lorne
$3.3 million-plus

Set on 9.3 hectares, with 330 metres of Great Ocean Road frontage and uninterrupted ocean views, there are six bedrooms (two in a separate, self-contained studio) and five bathrooms in this private retreat only minutes from Lorne.

Expressions of interest close February 1.
Great Ocean Road Real Estate, Michael Coutts 0438 356 624

58 Lialeeta Road, Fairhaven
$900,000-plus

So close to Fairhaven beach you can hear the waves, this six-bedroom house has ocean views and direct beach access via the new Great Ocean Road underpass. A large open-plan living area boasts a north-facing sundeck and open fire, and there is a second living area/rumpus room downstairs.

Offers by January 31.
Great Ocean Properties, Marty Maher 0419 505 279

21a Third Avenue, Anglesea
$855,000-plus

Eco-friendly contemporary style at Point Roadknight from architects Pleysier Perkins, with four bedrooms (master with en suite), two living areas, and a broad timber deck running the length of the property.  

For private sale.
Great Ocean Properties, Ian Lawless 0409 258 792