Southern highlands property focus, September 2004

Southern highlands property focus, Sept 2004

When the Sydney residential property market took a hit this year, the Southern Highlands was not immune.
Macquarie Bank’s head of property research Rod Cornish says regional markets like the Highlands have suffered price falls in some locations of up to 10 per cent.
“It’s not across the board and the prime locations have remained flat while others will have suffered,” he says.
Australian Property Monitors’ Louis Christopher says the Southern Highlands is behaving like many of the outer regional areas with some price falls across the board.
“At best the Southern Highlands is in a holding pattern, at worst it’s suffered some slight falls,” he says.
“The area hasn’t had some of the falls that some of the inner Sydney areas have had, but there could be a delayed reaction in those outer areas and that might be yet to come – I would say it’s a buyers market up there, just like it is in Sydney right now.”
Finderskeepers.com.au buyers agent Glennis Kennedy says the Southern Highlands market has been quiet and “everyone is hoping that Spring will see things pick up”.
“Things seem to have come to a bit of a halt until the election happens,” says Bong Bong Real Estate co-principal Kathie Frost.
“We’ve got some great stock but we have a lot of buyers hesitant about making decisions. There’s also the issue of Sydney buyers finding it difficult to sell their house in the Sydney market.”

THE MARKET

Most Southern Highlands agents agree that there are two distinct residential property markets in the region – premium priced acreage and more modestly priced residential housing.
Drew Lindsay Real Estate principal Drew Lindsay says the Highlands has always attracted wealthy Sydneysiders who will pay millions for a grand old estate on acreage in villages like Suttons Forest, Exeter and Kangaloon.
“Ever since the Governor built a house here in the 1860s, the Highlands has attracted wealthy Sydneysiders – this is a winter version of Palm Beach,” he says.
“That upper end of the market is fine up here but the average house between $500,000 and $1.5 million is very quiet, as it is in most markets including Sydney.”
Lindsay says he has sold three estates for more than $4 million this year, including one for $6.5 million.
“To get those prices, you really need something that has a lovely home, on lovely acreage with a lovely garden,” he says.
Laurie Peters Real Estate principal Cameron McKillop says the key to million-dollar plus price tags is close proximity to Bowral, the quality of the countryside in terms of soil and outlook and a position with privacy and seclusion.
“Up here, it’s about what’s an established address and what’s not,” he says.

THE OUTLOOK

Bong Bong Real Estate co-principal Kathie Frost says property that is close to Bowral and Mittagong has a strong outlook in the current market.
“For future growth, I don’t think you can go wrong as long as you are near the major centres,” she says.
Small acreage around Burradoo and Old Bowral are the most in demand locations for residential property, as they are in easy reach of facilities in Bowral.
“Bowral is no backwater – there are three large supermarkets, two hospitals and endless numbers of doctors and facilities here,” says Lindsay.
Cornish says the locations near high quality infrastructure is the key to long term price sustainability.
“The M5 East made a big difference to travel times, so roads are important, but in the long term villages with lifestyle infrastructure like cafes, restaurants and antique shops will fare the best,” he says.

GOULBURN BREAKOUT

The property boom of 2001 to 2003 not only fuelled prices in the Southern Highlands, but also nearby Goulburn in the Southern Tablelands.
“What happened was that people couldn’t afford the Highlands because it was getting so expensive, so they went half an hour away to Goulburn where they could get something for a better price,” explains Goulburn agent Angella Storrier.
“There was also an element of people who thought the Highlands changed during the boom, and they wanted that country feel so they came here.”
Storrier, who runs Angella Storrier Real Estate, says residential properties near the CBD of Goulburn can be bought for as little as $140,000 to $150,000 with prime Federation houses costing around $300,000. Acreage starts at around $400,000.
Raine & Horne Moss Vale principal John Jeffcoat says “creative” Goulburn real estate agents sometimes market acreage in Goulburn as being part of the southern highlands.
“I think there has been some liberal marketing of Goulburn as part of the highlands and that’s more to do with trying to get a premium price than anything else – highlands property is worth two or three times what Goulburn property can be,” he says.
Macquarie Bank’s head of property research Rod Cornish says secondary markets like Goulburn will be hit hard by property downturns.
“Locations that were secondary but had good catch-up growth may suffer more than prime locations,” he says.

PROPERTY STATISTICS

Bowral
Median house price to June 2004 $481,000
Projection for next 12 months 0% to 4%
Mittagong
Median house price to June 2004 $357,000
Projection for the next 12 months 2% to 6%
Burradoo
Median house price to June 2004 $845,000
Projection for the next 12 months 2% to 6%
Moss Vale
Median house price to June 2004 $343,000
Projection for the next 12 months 0% to 4%
* All statistics from Australian Property Monitors, publishers of the Home Price Guide


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Southern highlands property focus, Sept 2004 When the Sydney residential property market took a hit this year, the Southern Highlands was not immune. Macquarie Bank’s head of property research Rod Cornish says regional markets like the Highlands have suffered price falls in some locations of up to 10 per cent. “It’s not across the board and the prime locations have remained flat while others will have suffered,” he says. Australian Property Monitors’ Louis Christopher says the Southern Highlands is behaving like many of the outer regional areas with some price falls across the board. “At best the Southern Highlands is in a holding pattern, at worst it’s suffered some slight falls,” he says. “The area hasn’t had some of the falls that some of the inner Sydney areas have had, but there could be a delayed reaction in those outer areas and that might be yet to come – I would say it’s a buyers market up there, just like it is in Sydney right now.” Finderskeepers.com.au buyers agent Glennis Kennedy says the Southern Highlands market has been quiet and “everyone is hoping that Spring will see things pick up”. “Things seem to have come to a bit of a halt until the election happens,” says Bong Bong Real Estate co-principal Kathie Frost. “We’ve got some great stock but we have a lot of buyers hesitant about making decisions. There’s also the issue of Sydney buyers finding it difficult to sell their house in the Sydney market.” THE MARKET Most Southern Highlands agents agree that there are two distinct residential property markets in the region – premium priced acreage and more modestly priced residential housing. Drew Lindsay Real Estate principal Drew Lindsay says the Highlands has always attracted wealthy Sydneysiders who will pay millions for a grand old estate on acreage in villages like Suttons Forest, Exeter and Kangaloon. “Ever since the Governor built a house here in the 1860s, the Highlands has attracted wealthy Sydneysiders – this is a winter version of Palm Beach,” he says. “That upper end of the market is fine up here but the average house between $500,000 and $1.5 million is very quiet, as it is in most markets including Sydney.” Lindsay says he has sold three estates for more than $4 million this year, including one for $6.5 million. “To get those prices, you really need something that has a lovely home, on lovely acreage with a lovely garden,” he says. Laurie Peters Real Estate principal Cameron McKillop says the key to million-dollar plus price tags is close proximity to Bowral, the quality of the countryside in terms of soil and outlook and a position with privacy and seclusion. “Up here, it’s about what’s an established address and what’s not,” he says. THE OUTLOOK Bong Bong Real Estate co-principal Kathie Frost says property that is close to Bowral and Mittagong has a strong outlook in the current market. “For future growth, I don’t think you can go wrong as long as you are near the major centres,” she says. Small acreage around Burradoo and Old Bowral are the most in demand locations for residential property, as they are in easy reach of facilities in Bowral. “Bowral is no backwater – there are three large supermarkets, two hospitals and endless numbers of doctors and facilities here,” says Lindsay. Cornish says the locations near high quality infrastructure is the key to long term price sustainability. “The M5 East made a big difference to travel times, so roads are important, but in the long term villages with lifestyle infrastructure like cafes, restaurants and antique shops will fare the best,” he says. GOULBURN BREAKOUT The property boom of 2001 to 2003 not only fuelled prices in the Southern Highlands, but also nearby Goulburn in the Southern Tablelands. “What happened was that people couldn’t afford the Highlands because it was getting so expensive, so they went half an hour away to Goulburn where they could get something for a better price,” explains Goulburn agent Angella Storrier. “There was also an element of people who thought the Highlands changed during the boom, and they wanted that country feel so they came here.” Storrier, who runs Angella Storrier Real Estate, says residential properties near the CBD of Goulburn can be bought for as little as $140,000 to $150,000 with prime Federation houses costing around $300,000. Acreage starts at around $400,000. Raine & Horne Moss Vale principal John Jeffcoat says “creative” Goulburn real estate agents sometimes market acreage in Goulburn as being part of the southern highlands. “I think there has been some liberal marketing of Goulburn as part of the highlands and that’s more to do with trying to get a premium price than anything else – highlands property is worth two or three times what Goulburn property can be,” he says. Macquarie Bank’s head of property research Rod Cornish says secondary markets like Goulburn will be hit hard by property downturns. “Locations that were secondary but had good catch-up growth may suffer more than prime locations,” he says. PROPERTY STATISTICS Bowral Median house price to June 2004 $481,000 Projection for next 12 months 0% to 4% Mittagong Median house price to June 2004 $357,000 Projection for the next 12 months 2% to 6% Burradoo Median house price to June 2004 $845,000 Projection for the next 12 months 2% to 6% Moss Vale Median house price to June 2004 $343,000 Projection for the next 12 months 0% to 4% * All statistics from Australian Property Monitors, publishers of the Home Price Guide