North facing, luxury home on half an acre (2340 m2) of property, with mountain and ocean views, and a short walk to the beach. 

Three expansive bedrooms, state-of-the-art kitchen, hardwood floors, double garage, separate storage/wine cellar, landscaped gardens, seven minutes' drive from Eden CBD. 

Price tag: $850,000

Here is what $900,000 will buy you on the South Coast. Please click here for the full sized graphic.

Garden of Eden set to bloom

In May the Eden Magnet conveyed the results of a nation wide survey of the property market, conducted by realestate.com.au 

Internal data for the period May 2014 to April 2015 placed Eden as the number one spot in NSW to find a bargain property, based on demand/supply, days on market, and prices. 

The survey results were shared with the nation via the Buyer’s Market website, and has became a talking point between locals, interstate investors and real estate agents assessing the Eden property market.

“The Eden area is very affordable, and the market has remained flat for about three years,” Chris Wilson, from Chris Wilson Real Estate, Eden, confirmed. 

“In comparison to the Sydney and Melbourne markets, where there’s powering capital growth, we still offer excellent value for money for investors outside the area.”

House prices in Sydney and Melbourne have risen a staggering 6.4 per cent and 3.9 per cent respectively over the past 12 months, with foreign investment and low interest rates cited as the major drivers of the steep property rise in those cities. 

Some analysts fear a ‘housing bubble’ is forming in Sydney in particular, which may one day burst resulting in economic havoc. 

But many others - including Federal Treasurer Joe Hockey - are happy that the market rise remains proportionate to income growth, claiming it’s therefore positive and sustainable. 

Either way, the ripple-on effect is now being felt on our shores.

“Whenever we get growth in Sydney, it tends to spread out like a small wave,” Mr Wilson said. 

“Over the past 18 months we’ve seen our market vastly improve, with the rate of sales significantly higher. Capital values are showing the first signs of increase, with residential properties attracting yields in the order of 4 per cent return on investment. 

"With most normal term deposits offering 2.5 per cent return, there’s real incentive to invest in property.” 

It’s been a long time coming for Eden, battling for decades with an economic downturn associated with the closure of traditional industries, dwindling employment opportunities, and population decline. 

“Eden has been in the wilderness for decades,” owner of Eden Realty, Glenn Brunette, said.

“The general age of properties in Eden is 20 or 30 years old, or older. 

"You can count on one hand the number of modern unit developments in Eden.” 

A short respite from the doldrums occurred between 2001 and 2004, when Eden experienced a housing market ‘boom’, triggered by a combination of factors, primarily a strong economic period nationwide and an increase in growth in the metropolitan housing markets. 

“In 2001 the average price for a house in Eden was $150,000 and land was in the vicinity of $40,000,” Mr Brunette reflected. 

“But by the end of 2004 the average house was selling for $300,000 and land prices trebled. External market forces caused this boom, largely driven by an interstate frenzy to buy cheaper regional properties.”

A ‘bust’ to the ‘boom’ inevitably followed, mostly due to the local ‘internal’ market being unable to afford nor sustain the sudden price spike and market growth. 

The global financial crisis of 2007 also played a big role in flattening the Eden market, in tune with the wider national and international picture.

But today, low interest rates combined with a more positive outlook for the region is working its magic once again.

“We’ve experienced a lot of activity lately,” Adam Donaldson from Eden’s In-House Real Estate, said. 

“Over the last six to nine months we’ve seen a return of investor interest in Eden, with properties starting to achieve better-than-expected prices. 

"Smart investors are recognising that conditions are right for Eden, and the property market is moving.”

Some believe the proposed marina and Snug Cove precinct development is a primary motivator for investors. 

“The current rise in the local market is once again more to do with external forces, but this time the prospect of the port development is having an impact,” Mr Brunette said.

“The asset that sets Eden apart from any other coastal town is the natural asset of Twofold Bay, and developing the port will be a major catalyst for growth in Eden.

"It will stimulate the economy, and trigger a whole new development phase for the region. But we won’t see the real impact of that until construction is underway.”

Mr Brunette, Vice President of the Port of Eden Marina Inc (POEM), has a large banner in his Eden Realty shop front, clearly detailing the marina development for any window-shopping investor. 

He’s unapologetically pro-development and actively lobbying government, saying his motivation is simple. 

“I just want to see the town prosper,” he said.

Others are less adamant that the proposed port development is contributing to the current market upswing. 

“It’s not the overriding factor,” Mr Donaldson said.

“People aren’t ringing us saying they need to buy because of the port. 

"Locals might be more aware of it, and perhaps feel they should invest before a development like that pushes prices up. But most out-of-town investors have no idea about it. 

"The low interest rates are the biggest factor behind Eden moving again.”

Strong rental demand in Eden is also an identified plus.

“I’ve been here for 25 years and there’s always been a consistent demand by tenants,” Mr Wilson said.

“The very low vacancy rate, coupled with this reliable need for rentals, is a huge drawcard for investors. 

"And when the interest rates are this low, buyers are placed in a positive situation where the rent is paying off the mortgage.”

A 10-year cycle was normal in real estate, Mr Brunette said. 

Considering the last boom period ended in 2004, that 10-year cycle is now here. 

“You can normally see when the housing market is improving by an increase in home-decorator programs on television,” Mr Brunette commented. 

And as housing prices continue to escalate in Sydney and Melbourne, more people will be heading to Eden to watch the box, as moderate to low income families are forced to look further afield to find an affordable home.

In inner-city Sydney, buyers can’t jump on the housing ladder for much less than $1 million, which is a figure almost unheard of in our region.

“We only have one property over a $1 million on our books,” Mr Wilson said. 

“And that’s a clifftop half acre property on Yule St, Eden,  with an inground swimming pool, four bedrooms and views of the Pacific Ocean.”

“If you’re an investor with $1 million in your pocket, you can buy pretty much anything here,” Mr Donaldson agreed. 

“And that’s why we’re seeing investor interest in the Eden area now. 

"You can still buy beautiful properties here, at half the Sydney prices.”

Another way to look at the picture is from rock-bottom.

Flicking through the portfolios of the three leading Eden agencies - Chris Wilson Real Estate, Eden Realty, and In-House Real Estate - the cheapest land in Eden at time of writing was a residential block for $95,000 boasting ocean views, while the cheapest house was $218,000 with three bedrooms, close to the town centre.

“(An amount of) $218,000 wouldn’t get you anything in Bondi," an agent from the Century 21 real estate agency in Bondi, who requested anonymity, said.

"It wouldn’t even get you a studio apartment.

“The last three-bedroom home I sold in this area was in Bronte, for $2.9 million. 

"The building was 80 years old, run-down, with no views.” 

The agent told the Eden Magnet that the identified median price for a three-bedroom home in the Bondi area was now $1.9 million, with the most expensive three-bedroom home sold in the last six months costing over $4 million, and the cheapest $1.4 million, the latter situated on just 209m2 of land.

Just finding a ‘home’ for your car is expensive in Sydney, with many city folk forced to rent car-parking space for an average amount of $80 per week, or almost $4000 per year. And that’s the base price; no garage, no security ... and definitely no ocean views.

But whether you’re at the crest of the housing wave in Sydney, or dipping your toes into the humble Eden market, the big elephant in the room (of your new house) is the current high risk of a nation-wide recession.

One of the world’s leading market strategists, Gerard Minack, recently stated that “Australia has run out of luck”, with tumbling commodity prices, weak consumer spending, and instability in traditional global markets all pointing towards a less than favourable year ahead for the nation.

“If there is a recession expect sharp outright losses in equities, notably banks, and significant falls in house prices,” Mr Minack warned.

It’s a warning that will no doubt cause a few potential investors to think twice before diving into the ‘cheap’ Eden market.

Although the local positivism is alluring, the threat of recession with it’s inevitable housing crash is probably good reason to sit tight for a while.

“A recession is a recession, and the market will certainly tighten up, it’s as simple as that,” Mr Brunette admits. 

“But it all comes down to risk management, and I believe Eden’s port development project will cushion the impact of a recession here.”

Undecided investors might just have to walk down to Snug Cove to clear their head, and make a decision. With $25 million in government funding now confirmed for the port project, and salvage divers clearing the ocean floor of debris for the new attenuation wall, it’s easy to feel positive again about the future.

Who knows.

Eden may very well boom...even if the nation goes bust.

Now to Merimbula... 

What $1 million will buy 

The recently released Domain House Price Report, revealed the news that Sydney's median house price is now higher than the average cost of a home in London and is nearing New York. 

The median house price in Sydney has smashed through the $1 million mark to reach $1,000,616. 

This is more than double the median house price in Merimbula which, in the 12 months until April 2015, was $447,000. 

The difference in the median unit prices is even larger with Sydney’s median unit price of $686,078 triple that of Merimbula which is approximately $225,000. 

Local real estate agents disagree as to whether the Sydney housing market is or will have an affect on our local market but they do all agree that with $1 million a person would be able to buy 90 per cent of properties on the market in Merimbula and surrounding areas including stunning properties with ocean views. 

Now to Bega... 

City retirees head to Bega Valley... 

For far less than the average Sydney median price of $1,000,000 you can have sea views overlooking Tathra Beach, three bedrooms and two bathrooms. However, is the local market more easily accessible to metropolitan buyers than first time home buyers of the Bega Valley?

By Alasdair McDonald and Albert McKnight

Properties on the Far South Coast are becoming a favourite for ageing metropolitan couples looking to put their feet up and enjoy their retirement with views over the region’s pristine Pacific Ocean.

“There are more people coming out of Sydney and Canberra getting out of the city and retiring,” Fisk and Nagle sales representative Michael Sturgess said from his Bega office.

“There’s definitely been an upward trend in the last two years,” he said.

“Anything between $200,000 and $350,000 is selling quite well.

“A three-bedroom, one-bath at 57 Upper Street sold for $275,000, and a four bedroom one bath sold for $319,000 at 270 Auckland Street.

“Although I did sell a property listed at around a million dollars in Bermagui recently.”

Federal Treasurer Joe Hockey recently advised metropolitan first home buyers to find a job that “pays good money” and will allow them to enter into a market that rose 12.4 per cent in 2014, and has a median price of $1,000,000.

However, what is the property market like for a first home buyer in a region such as the Bega Valley? 

A region that, according to the Australian Bureau of Statistics, in 2011 had an average annual wage and salary income of just under $39,000. 

Mr Sturgess said rising property prices on the Far South Coast were not “stretched” beyond where they should be, but shifting towards the market norm.

“Bega has always been low, we’re just catching up to the rest of the market,” Mr Sturgess said.

Mr Sturgess said he had buyers at the ready just waiting for properties to be put on the market, and social media was also playing its role.

“I’ve sold eight houses in the last month and we’re selling more than we’re listing at the moment because we have so many buyers waiting,” he said.

“I sold a property with three bedrooms and one bath on Koolgarra Drive in Bega for $300,000 before it was even online.

“Social media is massive at the moment, and we’re listing properties there that are selling literally a day later.”

Tathra Beach Real Estate’s Mick Tarlinton said the bottom end of the market, or houses from $300,000 to $450,000 had jumped 10 to 15 per cent, middle range properties are now selling well, while top end properties around the Sydney mean price were selling very slowly.

“We’ve sold a four-bedroom, two-bath with a double garage at 89 Bay Street for $625,000, a three-bed, two-bath at 45 Wildlife Drive for $520,000, one at Riverview Crescent for $525,000, one at Stafford Crescent for $660,000 and one out at Thompsons Drive for $585,000,” he said.

Bermagui Real Estate principal Gary Cotterill said the median house price in the Bermagui region for May was $416,000, and at the top end a house could go for as much as a few million dollars.

He said house prices around the area had only increased about 10 per cent in the past two years.

Mr Cotterill said it was also getting harder to find houses in the lower-price category of under $500,000, as people are regularly buying a cheaper house to renovate and then put on the market for an increased sale price.

Bermagui’s Julie Rutherford Real Estate sales consultant Mick Butterfield said median sale prices were at around $380-400,000 for his agency.

Mr Butterfield said the agency’s most expensive house sold this year was one for $1,095,000 near Bears Beach in Bermagui.

He said that while most sale prices were still around 2006 levels, they may have slightly increased in the past few months by only a few percentage points.

According to Mr Butterfield the problem is one of supply with not many houses in the Bermagui region priced under $500,000.

He said most properties are selling in the $600,000-900,000 price range, pushing towards that Sydney median of a million dollars.

And to Narooma...

Glasshouse Rocks estate sells for $6.7 million

Sydney bar baron Justin Hemmes' acquisition of landmark real estate strayed from hotels to exotic weekenders recently when he bought a vast 60-hectare beachfront property at Narooma.

It was reported that the Glasshouse Rocks property on 1.5 kilometres of absolute beachfront sold for $6.7 million.

Owned by the Chapman family for the past 66 years, the Narooma property has been run as a cattle farm until recently, with two dwellings on the pristine beachfront.

It was listed with hopes of between $8 million and $10 million before it was sold by Webster Nolan's David Nolan.

It was last traded in 1949 for £700 when bought by Norman Chapman, who grew corn and raised sheep, pigs and chicken on the property.

Mr Chapman's daughter Betty Long established a sea kelp business on the beachfront in the 1960s, which was continued until recently along with the cattle operation run by her son Scott Long and his partner Philippa Morton.

The property is named after the beach's landmark rock formations, which are 510 million years old, according to the Geological Society of Australia.

The Glasshouse Rocks formation meanwhile was recently written up in Australian Traveller magazine by photographer Ken Duncan as “an icon in the making”, as good as the 12 Apostles but better because you can walk on the beach. 

The Merivale chief has been on a buying spree in recent years, most recently buying the Queen Victoria Hotel in Enmore last month for almost $11 million.

In March his portfolio of more than 50 pubs, bars and restaurants was joined by the Newport Arms hotel on the northern beaches for about $50 million.

Mr Hemmes' family also own the gothic-style Vaucluse beachfront estate Hermitage, which was bought by the late John Hemmes in 1975 for $500,000, and a beachfront home in Rose Bay, bought for $8 million in 2005.