Where to buy cheap by the beach and make money
The best spots to get a beachside lifestyle and cool off for summer, while having also made a wise investment, have been revealed.
Property
Don't miss out on the headlines from Property. Followed categories will be added to My News.
The best spots to get a beachside lifestyle and cool off for summer, while having also made a wise investment, have been revealed.
While many believe the beachside dream is creeping further from reach across Greater Sydney, new data has pointed to hidden gems south of Sydney where you can buy a beachside house and have it grow in value.
According to the latest PropTrack data, tightly-held beachside suburbs of Monterey, Kyle Bay and San Souci have recorded growth in buyer demand of up to 80 per cent over the past year.
While locations like Bondi and Double Bay have traditionally attracted more attention, these other – and often underrated – locations have been cheaper for longer and are now best placed for price growth due to their increasing popularity.
MORE
Property market shake-up coming as rate cuts loom
‘Iconic’ corner store listing bringing back memories
Stone Real Estate-Sans Souci partner Shaun Ramani said there was growing interest down south from buyers getting priced out of the eastern suburbs.
“For a similar lifestyle, people see it as a pretty good opportunity,” he said. “That’s why we are holding our growth in the unstable times of increasing rates.”
Rising popularity has already seen home values rise in some locations on the northern beaches and eastern suburbs, along with the southern suburb of Oyster Bay and Central Coast’s Horsfield Bay.
PropTrack indicated these price rises defied an otherwise soft beach suburb market, with some suburbs that were popular during the pandemic recording price drops of above 15 per cent over the past year.
PropTrack senior economist Angus Moore said these price drops followed a general movement of buyers back to inner suburbs and commuter hot spots, but he added that some beach suburbs could still see growth as they had flown off buyers’ radar over previous years.
“This was happening over 2023 as prices were recovering coming out of the pandemic,” he said. “For these tightly held suburbs such as Monterey and Kyle Bay, homebuyers have been keeping tabs on what’s going on.”
Mr Moore said the pandemic saw people looking further out for the beachside lifestyle to The Central Coast, Mid North Coast and Illawarra regions, but the flow of seachangers has abated since lockdowns ended – with the exception of a few beaches.
“We are still seeing that trend but nowhere near as strong as during the pandemic,” he said.
Mr Ramani said Monterey was a hard suburb to get into due to its size with many people passing properties down to family.
“It’s very sought after and untapped,” he said.
“You don’t get the hustle and bustle from Brighton-Le-Sands but you are still close to the city. You also have the beach and easy access to transport.”
He said people were exploring more areas down south, with the area to benefit and grow in value from a major $78m shopping centre development planned at Ramsgate Beach.
The data showed demand rising in a handful of Central Coast suburbs, including Budgewoi and Bateau Bay, where properties were typically selling after 35 days on the market – well below the city average for sales.
Tom and Richelle Falconer are selling the Bateau Bay home they have owned for the past
seven years.
The couple, who have two young children Sonny, 5, and Mackenzie, 4, completely renovated the home and took a year off to travel around Australia while renting it out – and they are keen to do it all over again and buy another home close by.
“We are after a smaller home that we can renovate again, and we’re also keen to travel again,” Ms Falconer said.
“Our home is just beautiful now. When we originally bought, it was rundown but we saw the potential. Since then the market has gone crazy. The suburb is so popular, it’s five minutes from the stunning beach with rock platforms and pools.”
Mrs Falconer, a teacher, said their travels around Australia made them appreciate how lucky they were.
MORE
Keep it local: top tip for buyers, sellers in 2024
Homes from just $275k: Sydney’s cheapest streets revealed
“The beaches are beautiful and not as busy as the likes of Bondi,” she said.
“There are also bigger size blocks of land at more affordable prices. It also has a nice sense of community and kind of a small town vibe.”
McGrath-Long Jetty agent Melanie Sommers said Bateau Bay was the suburb on the coast where both Sydneysiders and locals were keen to live.
“It’s where everybody wants to be with the beach, great schools, playgrounds,” she said.
“Sometimes people from Sydney start looking in Terrigal or Avoca and realise how expensive it is. Then they come over this way and see it’s so much quieter and you get more for your money.”
Buyers agent and author Lloyd Edge said it was “as good a time as ever to invest in beachside suburbs”.
“Beachside suburbs offer high growth potential for property investors due to their high demand, desirable lifestyle, relaxed atmosphere and sense of community,” he said.
“With Sydney’s rising population, I think that beachside suburbs will continue to experience increased demand, presenting property investors with potential opportunities for strong growth,” he said.
Mr Edge’s advice around this type of investment was to check for long-term growth factors and vacancy rates, along with any erosion or property loss and council’s zoning regulations for flooding.
SYDNEY’S MOST IN-DEMAND BEACHSIDE SUBURBS
Houses
Monterey – 79.6% growth in demand – median sales price $2.4m
Kyle Bay – 50.5% – $2.3m
Bondi Beach – 39.6% – $3.7m
Double Bay – 35.9% – $6.06m
Budgewoi – 33.3% – $711,000
Coogee – 30.4% – $3.4m
Freshwater – 25.5% – $3.6m
Bundeena – 24.4% – $1.4m
San Souci – 21.4% – $2.1m
Blue Bay – 16.8% – $1.6m
Units
Sylvania – 37.5% growth in demand – median sale price $1.09m
Booker Bay – 33.5% – $743,000
Freshwater – 25.3% – $1.08m
Point Piper – 23.8% – $3.7m
Ettalong Beach – 23.4% – $910,000
Avalon Beach – 20.5% – $1.1m
Bateau Bay – 16.3% – $660,000
Maroubra – 16.2% – $966,000
Elizabeth Bay – 15.3% – $915,000
Dee Why – 15.2% – $883,000
More Coverage
Originally published as Where to buy cheap by the beach and make money
First look: Tower to replace old Surfers Paradise unit complex
Plans for an ultra-thin tower next to one of Surfers Paradise’s busiest light rail stations has been unveiled. FIND OUT WHERE
First look: Giant new homeware shopping centre expansion
Plans have been unveiled for a massive expansion of a Gold Coast shopping centre which will feature hundreds of carparks and a giant anchor tenant in its showroom.