What is driving the Jan Juc and Torquay real estate market?
The health of the Torquay real estate market remains buoyant as metropolitan Melbourne buyers continue to transition away from the hustle and bustle of the city, and move towards a more relaxed coastal lifestyle. Buyers and renters alike are looking to improve their life balance, which is in turn underpinning both the rental market and the real estate sales market on the Surf Coast. Demand for properties is strong and continues to remain strong, and the fact is, behind that demand it’s the big social shifts that are happening in and around Melbourne that are affecting our marketplace here as well.
I was recently talking with a tenant who currently owns a property in an expensive eastern suburb of Melbourne. They are trialling a life down here on the coast and renting what they felt was inexpensive at $520 week. On the Surf Coast they could get four bedrooms, a large backyard, heating, cooling, and in a good area near parks and reserves. They felt that was inexpensive. To rent a property with some of those features in and around the area that they lived previously, it would have cost them $1,500 a week, and it would have been deficient in perhaps heating and cooling and just the overall standard of the property.
The move was stimulated by friends who’d moved to the area a number of years ago, and this prompted the young couple to make a decision to trial a life on the coast. They now reflect back on what life was like up there in Melbourne, it was busy and hectic and it was also quite stressful. They spoke with their daughters about potentially what it might mean for them to go back to Melbourne at some stage. Both daughters, age six and 11, refused to go saying that there was “no way that they would move back to Melbourne”. The kids have embraced the healthier lifestyle and their family is spending more time together. There is less time in the commute, less time in traffic, less time being frustrated by the infrastructure shortcomings of Melbourne.
It appears those shortcomings of Melbourne infrastructure are going to continue, based on the increase in the population density and the consistent migration to Melbourne at current levels. I recently read an article by demographer Bernard Salt, whereby he was suggesting that in excess of 200,000 people have moved to Melbourne over the last two years. In fact, according to the Australian Bureau of Statistics in the year to last June, Melbourne’s population grew by 2.7% (125,000) with immigration responsible for the vast proportion of that growth. It is predicted that Australia’s population will hit 35 million by the middle of the century. With that increased population pressure, it’s fair to assume that some of those issues associated with the challenging, busy life of Melbourne, are only going to increase.
The Torquay real estate market has seen continued growth over the last twelve months. In July 2017 the median house price in Torquay was $720,000 whereas in July 2018 the median is now $775,000, an increase of around 7.6%. Jan Juc saw similar growth with the July 2017 median being $805,000 increasing to a July 2018 median of $853,000 or approximately 5.9%. Irrespective of whether there’s a softening in the marketplace overall, it’s reasonable to assume that the buyer demand and rental demand will continue to remain strong. People will simply be looking to improve their lifestyle balance, improve their health and wellbeing, and the word is out about the lifestyle benefits of living on the Surf Coast.
A good turn out at the auction of 77 Strathmore Drive Jan Juc in the last Saturday of July 2018. The Property sold for $770,000
If you would like to discuss the Jan Juc or Torquay real estate market with our sales or rental team, please call our office on 03 5261 4711 or email email@example.com