Elite buyers keep South Coast values buoyant as others drift down
Gerry Harvey and Justin Hemmes are among the high-profile property investors helping to keep the regional boom going in the NSW coastal hamlet of Narooma.
Some regional areas are being hard hit by the economic downturn but others are booming, such as the NSW South Coast hamlet of Narooma, which has recently attracted high-profile property investors including Sydney-based retail billionaire Gerry Harvey and pub mogul Justin Hemmes.
Featuring direct ocean access, a boat shed, and licensed jetty, a five-bedroom waterfront house near Narooma, about four hours south of Sydney, is on the market at a price of $6m to $6.5m.
The pavilion-style house has panoramic views of the Wagonga Inlet and is set on 6.45ha with elevated landscaped gardens, manicured lawns, a vegetable garden, and orchard. Windmill Cottage is being sold by Ted and Wendy Ambler who want to move closer to Canberra.
Expressions of interest in Windmill Cottage, which sports 500m of waterfront access, close on September 14.
Marketing agent David Nolan of Webster Nolan says Narooma is still a strong market with prices holding for one-off properties such as Windmill Cottage. “Properties such as what Gerry Harvey has purchased (Black Bream Point on the Wagonga Inlet) are holding their value,” Mr Nolan says. However, he adds that suburbs where there are rows and rows of similar houses will see some price softening.
Earlier this year Mr Harvey paid between $9m and $11m for his Black Bream Point property on 40ha which includes eight cottages and a 1.2km water frontage. Mr Hemmes was the first mover, however, putting Narooma on the map with his purchase of a tiki bar, called The Quarterdeck in March, 2021
He followed that purchase with his acquisition of The Whale Inn at Narooma, a boutique hotel and restaurant, the following June.
Mr Hemmes has a personal attachment to the region, which has long been a holiday spot for his family.
But Narooma is not the only regional hotspot enjoying attention.
Closer to Sydney, agents reckon a sprawling house and cottages at Jamberoo, just inland from Kiama around two hours south of Sydney, could return around $350,000 a year in holiday rentals.
The 10-bedroom and eight-bathroom property in Wallaby Hill Rd, at the back of the Jamberoo township, has a $7m asking price through Raine & Horne’s Jacqueline Crapp and Sotheby’s Michael Pallier.
Apart from the homestead on one acre there’s a pool with views to the ocean, separate entry and exit driveways, double carport, single garage and a self-contained studio with bathroom, kitchenette, and upstairs bedroom. The cottages are run as a luxury farm-stay holiday accommodation business, each offering two well-proportioned bedrooms, expansive and luxurious open-plan living areas and fully appointed kitchens. The farm offers 60 acres of primary production land, suitable for a range of farming practices or lifestyle and hobby farming activities. The property was once owned by Mark and Evette Moran of the aged-care group.
The majority of land is suitable for grazing, although the property also offers pig pens, chicken coops, orchard, aquaculture and permaculture ready infrastructure.
According to CoreLogic, however, most major regional centres within a commutable distance of Sydney, Melbourne and Brisbane, such as Geelong, Ballarat, Illawarra, Newcastle and Lake Macquarie, the Southern Highlands and Shoalhaven, the Gold Coast and Sunshine Coast, recorded a decline in home values over the three months to July.
According to the data house, that marks the end of nearly two years of significant capital gains in the regions.