20 November 2008

Callala Beach rents up 10%: property expert

Rental prices in Callala Beach have risen by 10 per cent in the past 12 months and could go up another 10 to 20 per cent in the next two years, according to Raine & Horne Callala Beach proprietor Craig Hadfield.

Mr Hadfield said his property management team managed 200 permanent rentals and currently only two were vacant. "It's the lowest vacancy rate we've experienced in five years," Mr Hadfield said.

"I predict by Christmas we'll have no vacancies."

While rents were up, Mr Hadfield admitted that property prices had taken a hit over the past five years.

"However if it's as much as 20 per cent, in my opinion this makes Callala Beach a property hot-spot.

"There are lots of people telling us we're good value compared to the NSW Central Coast. For instance, 600sqm blocks with community title within 200m of Jervis Bay are selling for $200,000. We recently sold a three-bedroom, two-storey home within 300m of Jervis Bay for $315,000. For the south coast of NSW, property prices are still pretty cheap."

Mr Hadfield said there were three separate themes driving the Callala Beach property market - road works, under-supply of homes and the prospect of limited additional development.

"Home buyers and investors feel it can't be developed and that's the reason people buy here," Mr Hadfield explained. "We're completely land-locked and surrounded by National Parks and reserves, so there's no future development growth.

Improved infrastructure was also playing a significant role in attracting more buyers to the region.

"For example, the highway to Queanbeyan is taking about an hour off the trip between Canberra and Nowra.

"The huge road works and realignments are also generating more jobs, which is great for property and rental markets."

The region was also attracting plenty of buyers from Sydney.

"Professional people are buying homes between $300,000 and $1 million. Many are investors rather than home buyers. We recently sold a house at Currarong for $300,000, completely sight unseen to a solicitor in Sydney. The parties exchanged within a week.

Mr Hadfield wasn't convinced the First Home Owners Grant would have a huge impact locally, as the median price of $342,000 was too high for first home buyers.

"However I don't know whether it's a coincidence or not, but in the last week our enquiries have gone up tremendously, but it's from investors rather than home buyers. There is the perception interest rates are going to fall further and this is dragging investors out of the woodwork," Mr Hadfield said.

For more media information contact Craig Hadfield, Raine & Horne Callala Bay, on (02) 4446 5799 or 0401 088 137.