Cost of the coast

Bargain coastal property is attracting an increasing number of real estate investors in Australia who are keen to buy in sought after areas that have until now been too pricey...

According to the Real Estate Institute of Australia, property along the country's Eastern seaboard presents good buys at present.

'People will always perceive seaside properties as desirable and the data is suggesting that there is a trickle of buyers and investors going back into that market now,' said David Airey, REIA President.

'There are quite a few gems and pearls at present. We are not back at 2007 levels but we're now in a market that's seeing some movement,' he added.

There is also an indication that sellers are keen to sell even at a much reduced price. 'There has been a significant drop in the price expectations of vendors,' Airey confirmed.

Indeed on one property website, realestate.com.au there are more than 200 properties for sale in The Entrance alone, a popular seaside location about an hour north of Sydney.

In Caloundra, on Queensland's Sunshine Coast, more than 200 properties are on the search engine, some reading 'owner says make an offer'.

'There has been more and more buyer confidence in the last few months. Both vendors and buyers have a great understanding of the global financial crisis, and there is still volatility on the share market but people are opening their wallets and going back into the property market,' said Shane Fox, an Agent with Hocking Stuart at Blairgowrie, on Victoria's Mornington Peninsula.

Fox, who has been selling property in the area for eight years, said he had recently sold six on the Coast at £196,000 to £245,000 and that within the last year prices have dropped by about 20 per cent.

He now believes that prices are stabilising and that falling interest rates are helping confidence return to the market. 'I don't see things going down much further in our particular market,' he said.

Source: www.propertywire.com