No erosion of wealthy buyers’ beachfront property interest

An erosion event that caused two homes to be partially lost to the sea on the NSW Central Coast earlier this month has done little to deter wealthy buyers.

65 Forresters Beach Road, Forresters Beach, on the Central Coast.

An erosion event that caused two homes to be partially lost to the sea on the NSW Central Coast earlier this month has done little to deter wealthy buyers who are looking to buy a beachfront holiday escape.

A little over a week ago, two luxury homes partially collapsed into the sea at Wamberal Beach, on the NSW Central Coast, after waves up to 8m high crashed on to the shoreline eroded the sand under the houses leaving them standing on exposed, rusting metal beams.

More than 40 homes along a stretch of waterfront properties were still without power, water or gas on Wednesday afternoon as some residents were evacuated.

Economist Andrew Wilson said buyers along Australia‘s coastline, not just on the NSW Central Coast, needed to be more discerning and face the realities of waterfront purchases.

“Buyer beware, you will have to keep that in mind,” Dr Wilson said.

“That’s the big issue with the problem of rising sea levels — prestige beachfront locations will be primed for impact. It’s not just one part of Australia either, it’s everywhere along the coast that is at risk from erosion or low flood plains.”

Around 95 per cent of all homes sold on the Central Coast in the March quarter made a profit, according to CoreLogic’s latest Pain or Gain report. Of these sales, the median premium on the original purchase price sat at $250,000. The median holding time for these properties was 8.2 years.

Homeowners along the same strip of beach or similar could be facing price or renovation concerns in the future as planning authorities begin to acknowledge the potential problems caused by rising sea levels and wild weather, Real Estate Institute of NSW chief executive Tim McKibbin said.

Wamberal Beach houses in danger of collapse Picture: Darren Leigh-Roberts

“What this has demonstrated is that if you build so close to the beach, it will have an impact on the ground you build on. Adjacent properties are now under a question mark,” he said.

“Some councils have realised their decisions to allow people to build on these blocks were wrong.”

But, in the wake of the freak event, Belle Property Killcare agent Cathy Baker said demand for prestige property overlooking the Pacific Ocean has kept up. She is working with about 50 affluent buyers, particularly from Sydney’s Northern Beaches, who are looking to buy absolute beachfront in the $5m to $10m price bracket.

“There has been more interest than ever before for holiday homes on the beachfront. People aren’t travelling so they are putting their money here to get them a return,” she added.

Ms Baker said she noticed that more buyers were coming to the negotiating table having done their ­research.

“Everyone I have spoken to recognised that it (the recent erosion incident) should not have happened and that it was an isolated incident,” Ms Baker said.

“Most people steer away from homes so close to the beachfront as they are aware of the risks. They do their due diligence and their agent should be making them aware of any known issues.”

A Killcare property received four offers in excess of $4m ahead of Friday’s closing date of the expression of interest campaign led by Ms Baker.

The leading party from Sydney, who hopes to use the five-bedroom home as a coastal getaway, was attracted to the 180-degree vista across the beach to the headlands viewed from any of the alfresco terraces that sit on three sides of the home.

The agent also sold a beachfront home at Forresters Beach in mid-July for a suburb record-breaking $4.5m to wealthy Sydneysiders.

The highset architecturally designed home at 65 Forresters Beach Road has an absolute beachfront with direct access to the water.