Packing up a city life and making a tree or sea change is a common fantasy for many Sydneysiders, though for some a country or coastal weekender is possibly a more realistic dream.
But when it comes to putting those plans into action, where are most people actually looking? New Domain data, on which regional areas are seeing the most inquiries from Sydney, points to our closest neighbours.
So far this year, the Central Coast region leads the charge, with just over 30 per cent of inquiries from Sydneysiders since the beginning of January. From the CBD, it takes about an hour and 15 minutes to reach the region’s gateway by car. Popular suburbs include Avoca, North Avoca, Terrigal and Killcare.
The region has been the most popular for the past three years, suggesting proximity is a key factor in the hunt for a holiday home, a sea-change property or a regional investment.
Close behind is Wollongong-Illawarra, which has just shy of 11 per cent of inquiries.
Its lifestyle suburbs include Wollongong and North Wollongong, as well as more affluent beachfront towns on the northern strip, like Thirroul and Austinmer. The latest ABS data showed an increase in the area’s resident population, with a 1.3 per cent rise in 2018.
Affordability may explain why the Central Coast is outperforming Wollongong-Illawarra by such a large margin, in terms of inquiries. The Central Coast’s median house price is $625,000 to December 2018 and that figure jumps up to $723,125 for Wollongong.
In January 2017, Domain reported that Wollongong had become the third-most expensive city in Australia.
Trever Molenaar of Molenaar & McNeice, who has offices in Wollongong and in the northern suburbs, said the region’s coastal location is a significant lure for Sydney buyers, particularly those from the Shire.
“If you look at a suburb like Cronulla, people can cash in on their homes for a little bit more and either buy a larger property down here, or have some extra cash in the bank,” he said.
Six months ago, about 60 per cent of Mr Molenaar’s sales were made up of Sydney buyers, though he noted that this has dropped off since. Of those buyers, most are young couples and upgraders who are owner-occupiers.
During holiday periods, his offices see a spike in outside-area inquiries, although Mr Molenaar added that this does not necessarily translate into a higher number of sales.
Investors looking to buy in Wollongong are typically drawn to two types of dwellings, he said. “Wollongong CBD has more transport options and shops, but if you’re after a lifestyle buy you’ll be looking further east or north, [where] properties become more expensive.”
Many of his Sydney clients looking in the northern suburbs are seeking a medium-term investment, with plans to move down after five to 10 years of renting out the property.
Sydney buyers are drawn to seaside locations, the data shows. The Shoalhaven region comes in at third place, which holidaymakers will recognise for suburbs like Mollymook and Ulladulla, as well as slightly more inland gems like Berry and Kangaroo Valley.
Fourth and fifth place go to Northern Rivers (including Byron Bay and Ballina) and the Mid North Coast (including Port Macquarie and Coffs Harbour), respectively.
Between 2017 and 2018, Shoalhaven saw the biggest increase, climbing 1.9 percentage points.
This may suggest that picturesque towns like Ulladulla and Jervis Bay are increasingly coming onto Sydney buyers’ radar. In January this year, for instance, thousands of tourists were turned away from Hyams Beach, famed for having the “world’s whitest sand“.
The Northern Rivers and the Southern Highlands both saw an increase of one percentage point, about half the bump seen in Shoalhaven.
Domain research analyst Eliza Owen said about 60 per cent of out-of-area inquiries across regional NSW come from Sydneysiders, and inquiries could be indicative of supply levels, not just desirability.
“We need to consider that there may not be as many properties in far west NSW, so the volume of inquiry there won’t be as high,” she said.
“Cities like Newcastle and Wollongong are more densely populated than those further up and down the coastline, where [dwelling stock] is more sparse.”
The data also suggested that some regions — or certain areas within regions — may have overlooked potential. Ms Owen pointed to the Mid North Coast and Port Stephens as areas to watch.
“The northern coast of NSW has relatively high rental yields, and there’s a lot of infrastructure happening [like] the new Tweed hospital. Even though the market is in a period of subdued demand … in the long term, there are some interesting prospects along that coastline,” she said.
For cheaper properties, she suggested that buyers look further north of Newcastle and further south of Wollongong.
Since January, the Southern Tablelands has seen less than one per cent of the total regional inquiries from Sydney buyers. This is likely to reflect stock levels as well as demand.
On the edge of the region and outside the gateway to the Southern Highlands, one city is forging a new reputation.
The local correctional centre once dominated conversations aboutGoulburn but that has changed dramatically, according to Ray White agent John Connell.
“I really appreciate the way Goulburn is going,” said Mr Connell. “It’s got the best of both worlds – old Federation and some Victorian-era buildings, as well as modern builds.
“It has all the amenities you need, and it’s a very friendly town that’s great for families.”
Mr Connell’s main client base is families and young professional couples who commute to Canberra and want to live away from the city.
The city’s value held up when compared to towns of the Southern Highlands, he said.
“The housing is a lot more affordable, and I think we have more opportunities for careers here too,” he said. “It’s a growing town, there are a lot of subdivisions going on, we have a river running through with walkways beside it … it’s a pretty little city.”
Central Coast agent Baraka Leporte of Belle Property, who focuses on areas like Killcare, Macmasters Beach and Wagstaffe, said about 80 per cent of his buyers were Sydneysiders in search of a holiday home.
“Buyers [are] predominantly coming from the lower north shore and the eastern suburbs,” he said.
Mr Leporte added proximity gave the Central Coast an edge for many Sydney buyers. “They generally want to be up here within an hour and a half or so, and they find it’s a nice clean run on the motorway.
“The South Coast and Southern Highlands take a bit longer [to reach] because of traffic, since you have to go right through the city.”
Mr Leporte added the Bouddi Peninsula was particularly sought-after. “They’re drawn to the untouched [quality] that we still have here,” he said.
