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2002 (c) Peninsula Community Access Newspaper Inc

 

Property prices rise 15 per cent

 

Peninsula property prices have risen an average of 15 per cent in the last year, according to Mr Craig Shields of Century 21 Umina Beach.

Mr Shields attributed the price rise to the demand from elderly couples from Sydney looking for an older style home in an acceptable position to be rented out for up to 10 years.

"Their objective is to pay off as much as possible and then build their dream retirement home afterward," he said.

"Since property prices are a lot cheaper up here than down in Sydney, the move gives them extra cash for retirement.

"A lot of properties are attracting higher prices than expected and plenty of buyer attention.

"It is getting very hard to find a quality three bedroom home under $250,000.

"It's becoming obvious that any area within two hours of a major city is experiencing considerable price increases."

The most popular growing areas were the Central Coast, Bowral-Southern Highlands, Newcastle, Orange and Wollongong, he said.

Mr Shields said that, according to Australian Property Monitors, Central Coast prices had on average increased by approximately 11.5 per cent in the last year..

Bowral increased by 16 per cent, with unit prices there increasing 26 per cent.

Mr Shields said that the outlook for property prices remained strong, with interest rates expected to go up "only marginally and slowly".

"The expectation is that as the economy gains more strength, the brakes will be applied through a higher Aussie dollar exchange rate."

Newsletter, May 28