April 3, 2023

Interest Rates & Price Decline has had zero impact @ Lake Narracan Resort

Despite the increase in interest rates throughout Australia, the land prices in Lake Narracan, Victoria have continued to increase. Land prices does not have co-related to the interest rates in this case simply because of all the benefits that come along with living in a beautiful waterfront location in Lake Narracan , Victoria.

Lets explore the reasons why the land prices in Lake Narracan have continued to rise.

In recent years, interest rates in Australia have been on the rise. The Reserve Bank of Australia (RBA) has consistently increased the cash rate in the last 6-8 months . This is the rate at which banks borrow money from the RBA. This increase in interest rates should have resulted in a decrease in demand in property in general. However, this has not been the case at all in our prestigious Lake Narracan Resort in Moe , Victoria.

One reason for the stability of land prices in Lake Narracan could be attributed to the town’s unique location and its economic opportunities. Lake Narracan is situated in a beautiful location, surrounded by hills and forests, and offers a range of outdoor recreational activities such as hiking, camping, and fishing. Not to forget the beautiful moe golf course and other sporting facilities including cricket grounds, tennis courts and the moe race course just mins away.

The key we also believe is the fact that our project is overseeing the lake and it is the most prime spot in the Lake Narracan region when compared other major land developers in the location.

Additionally, Lake Narracan is close to several tourist attractions, such as the Walhalla Goldfields Railway and the Baw Baw National Park. As a result, the town has seen an increase in tourism over the years, which has helped to boost the local economy.

Another reason is the limited supply of land in the area. Lake Narracan is a small town with limited land available for purchase. This means that the demand for land is always high, regardless of changes in interest rates. Furthermore, the town’s zoning regulations and planning laws have restricted the construction of new properties, making the supply even more limited. This limited supply of land has helped to maintain the stability of land prices in the town.

Importantly, the current trend of people moving out of cities and into rural areas could also be a contributing factor. The COVID-19 pandemic has accelerated this trend, as more people have started to prioritize their lifestyle choices over their work commitments. This has led to an increase in demand for properties in regional areas, as people seek a quieter and more relaxed lifestyle away from the hustle and bustle of the cities. As a result, even with the increase in interest rates, the demand for properties in Lake Narracan has remained high, helping to maintain the stability of land prices.

Furthermore, the land prices in Lake Narracan have continued to increase in the last three years. This could be attributed to the town’s growing popularity as a tourist destination and as a retirement spot. Many people have started to recognize the town’s potential for investment and are buying properties as a means of investment. This has led to a further increase in demand for land, resulting in a rise in land prices.

When we started selling land in the project in 2019 , an average land price was $165,000 approximately whereas the average price now is @ $350,000 . This means the land prices have more than doubled in the last 3-4 years.