An increasing disparity between supply and demand is expected to force prices up in one tightly-held real estate market.
Berkeley Vale on the Central Coast of New South Wales has a significant number of older owners continuing to live in larger family homes due to a lack of viable alternatives, according to real estate group Raine & Horne.
“There is a shortage of dwellings in Berkeley Vale that are suitable for older downsizers, while the prospect of moving into retirement facilities isn’t a popular option either,” Craig Fisher, principal of Raine & Horne Toowoon Bay and Killarney Vale said.
“This is creating a housing bottleneck in Berkeley Vale with demand outstripping supply, which has forced up real estate prices by an average of 17 per cent over the last year.”
The imbalance has caused stock in the region to move very quickly, with Mr Fisher saying properties in the 2261 postcode are selling within 12 days.
“Properties are selling even before they hit the market, with about 85 per cent of buyers locally based, which dispels the myth that Sydney buyers are wholly responsible for real estate activity in our region,” he said.
Low interest rates and Berkeley Vale’s affordability are also drawcards with buyers, according to Mr Fisher.
“Entry-level three-bedroom houses in Berkeley Vale start from an affordable $450,000," he said.
“It’s also a great place to live, which the locals have recognised. We’re close to jobs at some of the Central Coast’s biggest employers such as Sanitarium, Masterfoods, and the Ourimbah Campus of Newcastle University.”