Hemsworth link could help make Phillip Island next Byron Bay
And the former Block destination has one big advantage over other contenders nationwide: the Hemsworths already own a home there.
The revelation comes as Ray White economics team research has revealed the best places to buy a holiday home with room to boom, and why the middle of winter might be the best time to sign up for a sea-change.
Frankston South house price record set by clifftop mansion
Adrian Portelli selling entire Block compound at Phillip Island
For those on a budget, the best spots are in the state's far east and west.
House prices in the Glenelg region on the South Australian boarder can be as low as $352,000, according to the Ray White data.
While on Victoria's southeast coast the Longford-Loch Sport area isn't much more expensive with homes for $407,000.
Those looking for something closer to Melbourne will get the best value in the southern end of Werribee, where the median house price is just $746,599, or the wider Frankston region, which has an $840,217 typical value.
The research tracked Statistical Area level two regions, which are typically slightly bigger than suburbs of the same name, and can yield differing median prices to the suburb, but capture a broader range of homes that have the coast close at hand.
And now could be the best time to make a move.
Ray White Group chief economist Nerida Conisbee said buying a holiday home in winter could prove advantageous due to reduced competition from other buyers, leading to better deals and more favourable negotiation terms.
'Selling in winter in a beach side location is generally not something people do. If they are selling, they are potentially a highly motivated seller and that's where you could get a bargain.
'While you'll have greater choices in summer, it's in winter that buyers will have a higher chance to save money.'
While potential savings will vary in each state and location, some studies suggest an average of 0.51 per cent to 1 per cent less than other times of the year.
As for those looking to get a piece of the next Byron Bay, before prices take off, Ms Conisbee tipped Phillip Island.
With a surf lifestyle and community appeal, as well as property prices typically still well under $800,000, it shares many hallmarks of the NSW playground of Hollywood A-listers and Aussie richlisters — but not the price, with Byron Bay's typical house costing about $2.243m.
'So for people seeking a similar lifestyle, Phillip Island is becoming quite popular,' Ms Conisbee said.
'However, Victoria seems to be the area that's still a bit undiscovered (as a holiday destination) and hasn't seen the same (price growth) as other areas.
'So for those looking for a bargain – and a similar lifestyle to Byron – you'll find that the cheaper areas are in the east, starting at Phillip Island.'
And while the coastal hamlet hosted The Block in 2024, it's had its own star-power appeal for a lot longer.
Property records show Liam and Chris Hemsworth, alongside their parents Craig and Leonie, bought a home for $1.6m in a secluded pocket of Phillip Island in 2012.
It's a more modest space than the sprawling compounds the Hollywood heavyweight brothers own in Byron Bay, but might be a bit closer to the surfing-centric lifestyle they enjoyed while growing up on the island in the 2000s.
Phillip Island based real estate agent Greg Davis said the popular spot had been going through a transformation since the pandemic that was making it more like Byron Bay than ever before.
Mr Davis said in addition to Hollywood heart-throbs the Hemsworths, others calling it their home away from home included famous musicians, sporting greats and business leaders.
Most are drawn to the million-dollar water views on offer along its coastline, available for the about $2m you'd pay for a standard home in Byron.
Phillip Island has also hosted its share of music festivals – but goes a step further with the annual Moto Grand Prix, which has lured Hollywood A-listers including Eric Bana and Keanu Reeves.
Mr Davis said the Island had been transforming in recent years, with about 60 per cent of buyers today looking for a home there as a permanent residence — driving an increase in the presence of cafes, breweries and boutiques.
'It's certainly been busier than it was before Covid,' he said.
It's also going cheap at the moment, with prices in most suburbs around the Island still below their post-Covid peak, though Mr Davis said it wasn't likely to stay that way for long.
He's tipped areas like Smiths Beach and Cape Woolamai to be the first back into the million-dollar club, and popular Cowes might not be far behind.
'I've sold three in the past few weeks around the $2m mark,' he added.
Mornington Peninsula-based buyer's advocate Michael Sier said this winter and spring would likely be among buyers' last chances to really take advantage of a broader decline in Victoria's coastal property markets.
Mr Sier said additional land tax costs introduced by the Victorian government at the start of 2024 had turned many off of owning a beach house, unless it was their permanent residence.
However the Buyer X buyer's agent has noticed rising numbers of holiday home buyers contacting him this year.
While he noted that there were very different vibes in some of the most affordable pockets identified by the Ray White research, particularly suburban areas like Frankston, the wider Mornington Peninsula was still as much as 10 per cent below its peak for prices.
'So buyers still have an opportunity for properties where sellers are motivated to get it sold,' Mr Sier said.
VICTORIA'S MOST AFFORDABLE COASTAL HOUSE LOCATIONS
Source: Ray White Economics, figures track Statistical Area 2 regions that extend beyond named towns and locales.
Region (Statistical Area 2) Median house price Median unit price
GLENELG (VIC.) $352,674 N/A
LONGFORD – LOCH SPORT $407,134 N/A
ORBOST $416,170 N/A
YARRAM $443,210 $306,029.00
PORTLAND $449,102 $339,028.00
MOYNE – EAST $459,863 N/A
CORANGAMITE – SOUTH $489,394 $419,347
BAIRNSDALE $502,813 $367,490
LAKES ENTRANCE $556,134 $425,591
FOSTER $565,597 $395,198
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
42 minutes ago
- News.com.au
Pascoe Vale townhouse sells for $705k at auction
A young couple's six-month search for their first home has come to an emotional end in Pascoe Vale, with 3/8 Stewart St selling $25,000 above the advertised price guide after a fast-tracked campaign and a tightly contested auction. The two-bedroom townhouse changed hands for $705,000 under the hammer, with three active bidders among eight registered on the day, all of them owner-occupiers. Ray White Glenroy's Sebastian Rello said the result was fuelled entirely by first-home buyer demand. 'Not a shoebox': Windsor buyer wins big 'All owner-occupiers. Not a single investor. It was a genuine first-home buyer market today,' Mr Rello said. The new owners, Hayden Rayner and Monique Nagle, had spent the past six months looking for the right home before securing the keys. 'We were attracted to this property because of its homely feel — we're actually renting something similar,' Mr Rayner said. 'We like the area and being close to the station. It's been a long time coming … now we can finally focus on other things, like a wedding.' Set in a boutique block of just five homes, the property features two downstairs bedrooms with built-in robes, a renovated central bathroom, full-sized laundry, study nook and remote lockup garage. Upstairs, a light-filled open-plan living and dining area flows onto an oversized balcony — a major drawcard during inspections. 'The outdoor area really helped push the price,' Mr Rello said. 'It sat directly over the garage and was essentially the size of another living room. Buyers loved the idea of covering it in the future, subject to owners corp approval.' Mr Rello said the campaign was originally set to run four weeks but was shortened to three after a strong surge of early interest. 'We had over 50 inspections in just three weeks — 13 midweek groups and another 23 on Saturday in week one alone,' he said. 'With that sort of traction, we felt it was better to bring the auction forward and capitalise on the momentum. The seller made the call, and it paid off.' He said the decision helped capture rising buyer urgency across the market. 'Over the past month, we've seen a real shift. Buyers are more intentional, and if you don't act on that interest early, you risk losing them,' Mr Rello said. Despite the Reserve Bank holding steady this month, Mr Rello said expectations of a rate cut later this year were already influencing buyer behaviour. 'If you find something you like — go for it. Don't wait,' he said. 'Once interest rates drop, we'll likely see even more competition and pressure on stock. The smart buyers are getting in now, before that happens.'
ABC News
2 hours ago
- ABC News
Another economist warns about intergenerational wealth in Australia
Why are more economists talking about Australia's intergenerational wealth challenges? Guy Debelle, a former Reserve Bank deputy governor, joined the fray last week. In a speech in Sydney, he said one of Australia's big challenges, in the next decade or two, will be managing the huge transfer of wealth that will have to occur from older generations to younger. "Superannuation and housing are possibly the ultimate embodiment of intergenerational issues in this country," he said, as reported by the Australian Financial Review. Dr Debelle was talking about an issue the Productivity Commission raised in 2021. In its 2021 report, "Wealth transfers and their economic effects," the commission said Australian had experienced strong growth in household wealth over the last 20 years, but it had been very uneven. "The wealth of the average older Australian has grown remarkably since the turn of the century," it said. "Retirees in particular have seen disproportionately strong growth in their wealth relative to younger people. "Indeed, at a time where one would expect retirees to be drawing down on their wealth to fund consumption, their wealth has actually increased." The commission said housing wealth was driving the phenomenon, along with growth in superannuation balances. "Older age groups own more housing wealth, they draw down on that housing wealth slowly, and they inherit large housing wealth from their partners in old age," it said. The below graphic, from the commission's report, showed what happened to real house prices in Australia between 1970 and 2018, relative to incomes. The report said while trillions of dollars in wealth would transfer from older Australians to younger Australians in coming decades, the timing of the wealth transfer could create its own challenges. "By the time people receive an inheritance, they will be well into middle age — about 50 years old on average — already established in their careers and housing, and many will potentially be nearing retirement themselves," it said. It kickstarted a national conversation about the need for wealth transfers to take place sooner, about the social benefits of older Australians downsizing their homes in retirement, and about the tax system generally. But that was four years ago, and house prices have soared (again) in the meantime. So in July last year, JBWere updated the numbers in that 2021 commission report to account for the growth in asset values that has occurred since. The commission report had referenced research from 2017, estimating that older Australians would transfer $3.5 trillion to younger generations over the next 20 years. But according to JBWere, that figure now stands at $5.4 trillion over the next 20 years. Its report revived questions about Australians receiving large inheritances so late in life, and how our tax system and housing situation were contributing to the phenomenon. It said the value of inheritances, and the age of receipt of inheritances, both peaked about 60 years of age. "This increased age of receiving an inheritance can be traced back to the rise in the average age of having children and increased life expectancy," the JBWere report said. "It does, however, raise the question of the need of recipients at this stage of life, compared to either earlier years (Bank of Mum and Dad) or for some bequests being directed elsewhere where greater need exists." At the beginning of last year, the former Treasury secretary Ken Henry had also warned that our tax system had deteriorated to the point that he was worried about Australia's "social compact" holding together. He said housing, the state of climate policy, and the commonwealth's over-reliance on taxing workers' incomes were three areas of major policy failure. "It's an intergenerational tragedy that we have allowed this to happen," he lamented. And last week, Dr Debelle also linked Australia's housing and tax situation to global economic trends. He said the political problems we're seeing in so many countries, and the "quackery" that's underpinning some current economic policies (such as Donald Trump's tariff policies) were symptoms of a larger problem. "One of the root causes of where we are today — particularly in the US, but it's also true in many other countries — has been the failure to distribute the gains from economic policy changes," he warned. Then on Friday, Cotality released its latest "Housing Chart Pack" data. It showed property values in nearly half of Australia's suburbs were sitting at record highs at the end of June. In Brisbane, almost 80 per cent of its suburbs had record-high property prices. In Perth it was a similar story. CBA's economics team said the upward momentum in property prices since mid-February had been fuelled by the Reserve Bank's interest rate cuts this year. The latest Westpac-Melbourne Institute consumer sentiment survey also showed that house price expectations jumped by 7 per cent in June, to its highest level since 2013. It showed over three quarters of consumers now expect property prices to rise over the next 12 months, especially in Queensland and NSW. But it said those expectations for property price increases weren't exactly filling Australians with confidence. "Despite this positive outlook for house prices, consumers remain relatively averse to real estate as an investment option and to risk in general," Westpac's Matthew Hassan said. "Indeed, responses to our quarterly question on the 'wisest place for savings' suggest that the tariff-related turmoil this year has seen what was already a high level of risk aversion intensify even further. "Consumers still heavily favour 'safe options' with 55 per cent nominating either 'bank deposits' or 'pay down debt' as the wisest place of savings, up slightly from 52 per cent in March. "Interest rate cuts have done little to shift these views so far," he said. It's a familiar dynamic. The majority of people expect property values to keep rising, and those price increases will keep boosting Australia's household "wealth". But will it be good for the Australia's younger generations? What's the end-point in all of this?
ABC News
2 hours ago
- ABC News
Albanese bats away questions about Taiwan and US defence demands on first day of China visit
The prime minister has been forced to bat away fresh defence demands from the Trump administration on the first full day of his visit to China, insisting that Australia supports "the status quo" in regards to Taiwan. The Financial Times reported on Saturday that senior defence official Elbridge Colby — who is leading the Trump administration's review of the AUKUS pact — was pressing both Australia and Japan to say what role they would play if the US and China went to war with Taiwan. Mr Elbridge took to social media after the piece was published to say that Mr Trump was focused on restoring US strength, including "by urging allies to step up their defense spending and other efforts related to our collective defense". "Of course, some among our allies might not welcome frank conversations. But many, now led by NATO after the historic Hague Summit, are seeing the urgent need to step up and are doing so," he said. The story came at an awkward moment for Anthony Albanese who fielded several questions on Mr Colby's comments during his visit to the commercial metropolis of Shanghai. Mr Albanese told reporters Australia did not support "any unilateral action" on Taiwan and that its spending on both defence and aid was "about advancing peace and security in our region". "We have a clear position and we have been consistent about that … We don't want any change in the status quo." A separate US government source told the ABC that the US — which maintains its own policy of strategic ambiguity when it comes to the defence of Taiwan — was having a "broader conversation" with allies like Australia. They also said Australia had rejected overtures from US officials who suggested Australia should give specific assurances to the Trump administration about how they'd deploy Virginia class submarines acquired through the AUKUS pact in the event of the US going to war. Asked whether the US was entitled to seek assurance about an Australian response to a war over Taiwan given its own position of strategic ambiguity, Mr Albanese did not answer directly but said the question answered itself. Earlier, acting Defence Minister Pat Conroy told the ABC's Insiders on Sunday Australia did not "engage in hypotheticals" and would make its own decisions in response to any conflict. "The sole power to commit Australia to war, or to allow our territory to be used for a conflict, is the elected government of the day," he said. "Sovereignty will always be prioritised and that will continue to be our position." Mr Albanese has tried to use the first leg of his visit to highlight the human links between Australia and China, going for a walk down Shanghai's famous waterfront with ex Socceroo Kevin Muscat, who is the manager for high-profile local soccer club Shanghai Port FC. After that he launched a new "chapter" of a major Australian tourism campaign designed to coax more Chinese visitors back to Australia, who have returned to Australia more slowly than expected in the wake of COVID-19 travel bans. He also met Shanghai Party Chairman Chen Jining, where he praised China's rapid economic development. "The development we can see across the river is symbolic of the extraordinary development that China has seen in recent decades, lifting literally hundreds of millions out of poverty," he said. Mr Albanese told the chair that Australia wanted to engage in "frank and constructive dialogue" to promote "stability" in the region. "We deal with each other in a calm and consistent manner and we want to continue to pursue our national interests," he said. "And it's in our interests to have good relations with China."
