Heady figures: Barwon Heads property values jump 624 per cent in 20 years

PROPERTY values in Barwon Heads have skyrocketed more than 600 per cent over the past two decades, and the ABC TV series most strongly associated with the town started it all.

The REA Insights Regional Australia Report, released this month, states the coronavirus pandemic has resulted in shifts across many parts of the economy, including preferences and demand for housing.

“There are two distinct trends driving up demand for regional property; lifestyle and jobs. As such, there are some areas experiencing far stronger interest than others.”

However, the report notes the “strong shift to beachside living” in Australia over the long term. Barwon Heads is highlighted as an example, with the median house price going from $145,000 in 2000 to $1,050,000 this year – an increase of 624 per cent.

Indented Head has a similar rise of 612 per cent, but lower prices of $85,000 and $605,000 respectively.

Bellarine Property director and real estate agent Levi Turner said there were multiple factors that explained the jump in Barwon Heads between the start of the century and 2020.

“If you look at the whole 20 years, the catalyst of it was SeaChange, the TV show. That was the simple part to begin with, when Barwon Heads was put on the map. People started buying holiday houses – not so much to live in, just holiday houses.

“What’s happened in the past 10 years has been a bigger shift towards people living here. Even in the past six months, that shift has just changed again, because of people working remotely.”

Interest from Melburnians also never waned during the coronavirus-related travel and auction restrictions.

“In the past four months, I think we’ve sold, as a company, about 25 properties to people who never looked at it from Melbourne, which is quite a lot,” Mr Turner said.

He said the biggest factor over the two decades was that Barwon Heads was not only small but also landlocked, which meant demand was always high compared to growing coastal towns such as Torquay, Ocean Grove and Point Lonsdale.

Mr Turner said the 624 per cent figure in the report did not come as a surprise to him, as the average annual growth in Barwon Heads over the past 10 years was just under 8 per cent.

“It was that initial early 2000s where for a couple of years in a row, prices almost doubled.”

He said it was too simplistic to say whether such enormous growth was ultimately good or bad for Barwon Heads.

“It depends who you talk to – it’s good for some people and not for others.

“I listed a property on Sunday where they bought it in 1986 and have lived in it for 35 years. I’m going to sell that now, and they’re at the retirement age.

“You ask them if it’s been good for the town, and they’d say ‘the town’s got busier, which we don’t enjoy, but hopefully we’ll sell at a great price and that’s going to set up our retirement’.”