House prices in regional areas by the coast have almost doubled during the past two years to become even more expensive than some nearby capital city markets.
Australia's housing affordability crisis is now so bad real estate is typically costing seven figures despite being more than a one-hour drive from the middle of Sydney, Melbourne or Brisbane.
In late 2019, beachside homes with backyards on the NSW Central Coast, mid north coast, pockets of the Sunshine Coast and Victoria's Mornington Peninsula had median prices under $600,000.
But now houses in these areas are typically sell for more than $1million as record-low interest rates and more people to working from home spurs demand for homes in areas offering a good lifestyle.
As recently as September 2019, Chittaway Bay on the New South Wales Central Coast had a median house price of $552,090 but last month this had jumped to $893,152 following a 35.6 per cent annual increase, CoreLogic data showed
CoreLogic research director Tim Lawless said buyers were moving to coastal areas as more bosses allowed their staff to work from home.
'Coastal markets in both metro and regional locations have recorded some of the highest growth rates in housing values across the nation as demand for properties that provide a mixture of lifestyle benefits and affordability continues to surge,' he told Daily Mail Australia.
'With flexible working policies starting to be formalised by many businesses, especially for desk based workers, it's likely that demand for housing across Australia's coastal, hinterland and lifestyle markets more broadly will remain higher than prior to Covid.
'However, the affordability advantage that makes many of these areas attractive is rapidly being eroded as prices rise so quickly.'
As recently as September 2019, Chittaway Bay on the New South Wales Central Coast had a median house price of $552,090 but last month this had jumped to $893,152 following a 35.6 per cent annual increase, CoreLogic data showed.
Some houses in this suburb on the western side of Tuggerah Lake are selling for more than $1million.
Woy Woy has seen a similar increase, with a median house price of $564,977 just two years ago growing to $962,358 in October 2021, with values soaring by 33.5 per cent during the past year.
House prices on the Central Coast have surged by 35.4 per cent during the past year to $954,330, making it one of Australia's hottest markets, with mid-point prices nudging the $1million mark despite being a one-hour drive from Sydney.
A similar phenomenon is occurring at Rosebud, on Victoria's Mornington Peninsula, where the mid-point house price in 2019 was just $539,591.
Median house prices during the past year have climbed by a whopping 38 per cent to $860,371 - with the annual percentage increase almost double Melbourne's 19.5 per cent rise.
The Mornington Peninsula, in Melbourne's outer south-east, now has a median house price of $979,554, following a 33.5 per cent annual increase,
