South West Holiday Hot Spot

Cashed-up make SW a hot spot

The combination of the falling Australian dollar and terrorism attacks in India are also encouraging Perth holiday-makers to cancel overseas trips and stay in WA.

Accommodation in Busselton, Margaret River, Dunsborough and Yallingup is at near capacity over Christmas-New Year.

And rental prices for luxury holiday homes in the South-West continue to climb.

The region's most expensive rental property, in Eagle Bay, will cost a cool $14,000 a week during the Christmas holiday period - $2000 a week more than last year.

Pictured right, the house in Mercator Way sleeps 10 and has sweeping ocean views. It's available in February for $9000 a week, up $800 on February 2008.

And if anyone fancies owning the most expensive rental in the South-West, it is on the market for about $10 million.

Other upmarket four or five-bedroom rentals with a swimming pool in similar holiday spots will cost $2500-$5000 for a summer week.

Jennings Hopkins principal agent Andrew Hopkins said people were travelling within Australia instead of heading overseas.

"I've had people ringing me chasing accommodation at the high end of the market because they've decided not to go overseas,'' he said.

"They're pretty big dollars - some of the privately owned homes in Eagle Bay rent from $3500 to $10,000 a week.''

Private Properties partner Rosie Harris said: "All prices have gone up, but you are still getting a resort-style holiday for that price.''

Ms Harris said top-end holiday home bookings had not dropped off, probably because they were made before the global financial crisis hit.

But forward bookings for February, March and April had slowed and this could lead to discounts.

"If there's a big slowdown we'll be suggesting discounts,'' Ms Harris said.

"I know some owners will be looking at maximising their bookings in that period, but we have got a fantastic summer coming up.

"The dollar is working in our favour, so are petrol prices.

"If a couple of families get together and hire one of the bigger houses, prices really stack up in their favour.''

Regency Beach Club Dunsborough manager Michael Sharpe said the resort was full.

"Most (rooms) are booked from last year, but we've seen an improvement probably because people aren't going overseas now,'' he said.

The luxurious Quay West Resort in Bunker Bay has had an increase in restaurant and spa bookings.

Mirvac group marketing manager Linda Sweeney said guests were eager to pamper themselves after a "hard'' year.