As the 2019 ski season winds down here in Australia with record crowds at some resorts, it’s no wonder demand for owing a piece of Alpine property continues to grow.
With new skiers discovering the sport along with seasoned skiers wishing to own their piece of alpine property has seen the alpine property in both NSW and Victoria continue to rise despite what we have seen in Sydney and Melbourne the past 18 months.
“It’s probably a little bit surprising that values have risen again in 2019 — given the broader housing market conditions — but you’re also seeing rents rising,” said Cameron Kusher, head of research at property analytics firm CoreLogic.
“So I think that really does highlight there is growing demand for housing in those areas and it’s not necessarily just people buying investment properties.”
For those bitten by the skiing bug, it not hard to understand why demand and pricing for alpine property continues to rise as families are using these properties more like a year round holiday home where you get to escape the heat of Sydney and Melbourne in the summer into the cooler alpine environments to enjoy summer hiking, fishing, mountain biking and those cool alpine nights.
Alpine homes sales peaked in 2017, with 271 properties sold in Victoria and 460 in NSW and 2019 is looking to do similar numbers once again. The good news for current owners and investors is that the median property values in the Alpine shires of Victoria ($419,935) and NSW ($289,195) surged by more than 25pc in the past year.
When you combine limited supply – as the ski resorts don’t have any addition space to release – with ever increasing demand that is having an effect to help push prices and rents higher across the alpine regions including Jindabyne in NSW, the gateway town to the NSW resorts.
Plus, when you consider Vail Resorts, a New York Stock Exchange listed company, purchased Perisher in 2015, has recently finalised it’s $180 million acquisition of Falls Creek and Mt Hotham to now own and operate three of the five major ski areas in Australia.
Vail’s acquisition into the Victorian market has property owners and investors wondering what they are going to do next, with the new owners likely to continue their improvement of resort facilities and infrastructure as they look to manage their resorts to a world class level.
Vail’s expertise in snow management means they maximise every snowflake that falls at the resort, plus they invest heavily in snowmaking and other services to maximise the guest experience. By doing this, Vail is able to offset any effects of climate change in terms of less natural snowfall, so everyone benefits when it comes to visiting the resorts and investing in the alpine areas.