Holiday home demand spurred by fall in Aussie Dollar
More Australian families are opting to invest in the thriving local holiday real estate market, ...
More Australian families are opting to invest in the thriving local holiday real estate market, with the falling Australian Dollar being a deterrent to overseas travel.
In the 12 months to December 2015 major holiday destinations saw impressive price growth activity, including Byron Bay in NSW (8.7%), Coolangatta on Queensland’s Gold Coast (12.5%), Margaret River in WA (5.4%) and Torquay on Victoria’s Surf Coast (7.8%). The demand for holiday homes was driven by three key factors; strong price growth in Sydney and Melbourne, investors looking for stronger yields and the falling Australian Dollar.
Studies by LJ Hooker show the softening Australian Dollar has had a positive effect on holiday rental markets around the country with domestic holidaymakers driving demand. The currency correction has had two main effects on tourist numbers.
The growing strength of the domestic holiday travel market is evident in the results of the latest survey of LJ Hooker offices that manage holiday rental accommodation. The survey found that a massive 62 per cent of respondents have seen higher demand for holiday rental accommodation this year, compared to last year.
The outlook is very positive for the tourism and holiday market around the country over the next 12 to 18 months. This is expected to see investors in ‘holiday’ real estate enjoying high returns as domestic holidaymakers look to take more vacations closer to home. This also provides a new range of opportunities for property investors. The holiday markets, generally, are more affordable and are higher yielding than their capital city counterparts.