The 2018/19 financial year saw a slightly more subdued property market in terms of volume, but still a very resilient coastal market in terms of price. It is interesting to see the contrast in price and volume of house sales in each town in our service area from the previous financial year.
So let’s look at the performance of each of the towns during this period. As a reference, these sales are house sales, that is, a free-standing dwelling on its own title. We do not include land sales or units although freestanding dwellings with common driveways are included. The median house price is calculated as the “middle” price when all the sales are ranked from lowest to highest.
Torquay again continues to have significant turnover with 211 house sales for the year, although was down from 249 in 17/18 and 330 the previous financial year. The median house price has been calculated at $840,000, up considerably from $818,750 in 2017/18 despite the lower turnover. There were 47 sales between $1m – $2m and just the 1 above $2m at $2,400,000 which was the top sale for the year. For context, there are currently 8,128 rateable properties in Torquay.
Jan Juc recorded 56 house sales, two up from 54 in 2017/18, with the median house price coming in at $875,000 which was a slight decrease from $907,500 in the previous financial year. The top sale for Jan Juc was also the top sale for the Surfcoast for the financial year at 2 Ocean Boulevard and we can proudly say that it was sold by Great Ocean Properties. The price is undisclosed but we can say that it sold in the mid $5m range, which to our knowledge is the first $5m+ sale recorded on the Surfcoast for a residential property. There were 14 sales between $1m-$2m and only the 1 above $5m as mentioned. There are 1,990 rateable properties in Jan Juc.
Anglesea saw 69 house sales recorded for the financial year, down from the 78 recorded in 2017/18. The median house price was $861,000, significantly up from $810,000 the year before. The top sale for the year was $1,800,000, which was well down from previous years. There were 15 sales above $1m, down from 23 the year before. Again, for context, there are 3,272 rateable properties in Anglesea.
Aireys Inlet recorded 28 house sales for the 2018/19 financial year which was down from 35 in the 2017/18 financial year. This was a direct result of lack of available houses for sale rather than a lack of buyers. The median house price again saw a significant jump to $877,000 up from $796,000 the previous year. The top sale was $3,000,000. There were 10 sales recorded between $1m – $2m and 1 sale above $2m (the top sale at $3m). Aireys Inlet has 1,195 rateable properties.
Due to the low numbers of sales, we have always grouped Fairhaven, Moggs Creek and Eastern View together. There are only 856 rateable properties in this area. There were 20 sales for the financial year, which was up from 17 the year before. The median house price came in at $1,437,500, which was significantly up from $1,200,000 the year before. The median price figure in this area has historically moved around significantly due to the low sample numbers. The top sale for the year was $3,100,000. There were 11 sales between $1m-$2m and 2 above $2m.
Lorne had a more subdued year. The total number of house sales was 33, which was well down from the previous year of 49 and 57 the financial year before that. The median house price came in at $1,170,000 which was down from $1,207,000 the year before. The top sale for the year however was a huge $4,925,000. There were 19 sales between $1m-$2m and 3 sales between $2m-$3m. There are 2,375 rateable properties in Lorne.
Apollo Bay recorded 44 house sales for the year, with the median house price coming in at $666,000. The top sale for the year was $1.3m. The affordable price point continues to be an attraction and the town attracts buyers from a wide variety of sources including regional areas.
Although volumes were generally down, prices remained quite resilient, relative to some of the price drops seen in other areas. In terms of sales volumes there was a clear distinction in the upper price ranges between those buying for a permanent residence and those buying for lifestyle. In Lorne, volumes were well down whereas in Torquay where they are predominantly owner occupiers, sales between $1m-$2m were quite solid. Sales above $2m were very subdued in terms of volume although there were some individual spectacular results including a new all time record as mentioned (see Jan Juc).
Property cycle fluctuations can only be viewed in hindsight and we believe that this time next year when we look back, the bottom to this cycle will be seen to be around the time of the federal election in May. We have seen a significant lift in enquiry levels since the election as buyers and sellers respond to the stability of no change in government and no major changes in property tax arrangements. Property market participants like certainty, especially in the discretionary lifestyle markets and we believe outside some unforeseen international economic event that activity levels will lift significantly as we move into spring and this new financial year, especially in the upper price points.
We hope you found this Great Ocean Report informative and if we can ever be of any assistance in any real estate matter please do not hesitate to call.