Are baby boomers responsible for coastal house price increases?
McGrath CEO’s latest report suggests sea-change seekers are driving up prices in coastal towns as a generation accesses super and makes plans for their golden years.
From 2025, Australia’s coastal locations can expect a steady uplift in prices as baby boomers retire to seaside hotspots with presumably generous superannuation budgets in hand.
McGrath founder, managing director and chief executive John McGrath’s just-released McGrath 2025 Report maintains that within little more than a year, every baby boomer will have access to their super, prompting many to make retirement choices.
According to the Australian Bureau of Statistics, 710,000 Australians intend to retire between the 2023 and 2028 financial years.
Many retirees will seek a sea-change, inevitably transferring generous city budgets to cheap coastal towns, no doubt resulting in steady price uplifts.
McGrath’s top picks for 2025 include the tiny township of Long Jetty on the NSW Central Coast. He says the sleepy little beachside village north of Sydney has been somewhat unfashionable until fairly recently. These days it’s a “jewel in the crown”, offering some of the best-value buys on the east coast, according to McGrath.
McGrath Central Coast agent Mat Steinwede says that for those aspiring to live on the absolute waterfront and enjoy a boating lifestyle, the Central Coast remains within reach, with properties selling for about one-third of the price of similar homes in Sydney.
“In saying that, there are not too many deep waterfronts, so discerning buyers need to be willing to wait for the right property,” Steinwede says.
Further south, in regional Tasmania, McGrath also likes Primrose Sands, a tiny seaside hamlet midway between Hobart and Port Arthur that he says is emerging as a gentrifier hotspot, known for its beautiful beach.
Primrose Sands’ median home value is $500,000 and the market is predicted to take off in coming years, given there are new apartment developments afoot.
According to the McGrath Report, coastal areas have shown strong capital growth when compared to the national market.
“In the 2024 financial year, median dwelling prices in city coastal suburbs grew by an average 10.9 per cent, compared to 8.3 per cent across all suburbs in capital cities,” the report says.
“Meanwhile, prices in regional coastal suburbs rose by 7.8 per cent, compared to 7 per cent in all regional areas.
“What’s more, in NSW and Victoria, coastal buyers can get considerably more bang for their buck in regional areas, compared to capital cities. For instance, Dover Heights, in Sydney’s eastern suburbs, was the most desirable coastal Sydney suburb in June 2024, with a median dwelling value of $5,463,711. Compare this to Gerroa, which was the most expensive regional suburb in NSW with a median value of $2,103,965 – around 39 per cent the price of Dover Heights.”
McGrath also notes that Australian waterfront homes were recording some of the largest value uplifts around the world in the first quarter of 2024.
This story is from the October issue of Mansion Magazine, out today, Friday October 25. Inside your copy of The Australian.
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