Torquay ‘top of coastal markets’

By Cherie Donnellan
TORQUAY is the “best-performing coastal town” on Australia’s property market, according to a new real estate study.
PRDnationwide researchers found that Torquay house and unit sale prices rose significantly in 2011 despite a decline in sales volume.
Research director Aaron Maskrey said Torquay had bucked a trend of falling prices after the 2009 government stimulus period.
“Where other coastal towns suffered losses, Torquay’s market has gone from strength to strength.”
PRDnationwide’s median Torquay unit sale price showed a 24.5 per cent increase on 2010.
The median unit price was $495,000 in December, compared to $397,500 for the same time in 2010.
The report found a 5.2 per cent increase in house sale prices, up to $568,000.
The 2010 median was $28,000 lower at $540,000.
But the report revealed that sales were down 51 per cent for houses and 39.5 per cent for units in 2011.
Mr Maskrey said the sales volume decline suggested the market would “cool off”.
“Victoria in general had higher gains in comparison to other states’ markets in 2011 but it could have been its peak.”
Melbourne region figures showed a five per cent decrease in median house prices in 2011.
Mr Maskrey said Melbourne’s housing supply saturation meant prices had to remain competitively low.
“Torquay doesn’t have that oversupply yet, so it’s still riding the peak of the market wave but I would be surprised if the median unit price for Torquay continued double-digit growth.”
Michael Ferris, of new Torquay agency Whitford, said “well-priced and well-located” property would continue to entice buyers to the town.
Mr Ferris said more buyers were seeking permanent homes in Torquay.
“Compared to towns like Anglesea and Lorne that still have a large holiday housing market, more people are wanting to live in Torquay permanently.”
Mr Ferris expected Torquay prices to “hold” despite land supply expanding as new estates opened.
“Buyers are well-educated. Pricing and positioning are so important at the moment.”
Mr Ferris said Whitford sold a three-bedroom unit for $573,000 at auction during Easter, was a “fantastic result.”
Great Ocean Road Real Estate’s Geoff Bennett labelled Torquay a buyer’s market.
Buyers were “being cautious”, he said.
“I’ve noticed a definite drop in the number of sales, which means there’s considerable housing stock at the moment but that’s having little effect on prices. They’re holding at the moment.”