ROCK star real estate is in vogue and the Sunshine Coast is fast becoming the state’s number one hotspot.
A $22 million Sunshine Beach mansion at 21-23 Webb Road is the latest in a growing line of luxury estates being snapped up by cashed-up buyers zeroing in on local postcodes.
The deal, sealed this week by Tom Offermann Real Estate, marked a Sunshine Coast record sale.
The northern suburbs of Sunshine Beach and Sunrise Beach are starring, with Sunrise Beach median house prices up 45 per cent in five years.
The current trend of anonymous buyers, often from southern states or overseas, laying down big bucks on elite homes and land parcels, shows no sign of stopping.
Tennis star Pat Rafter’s Sunshine Beach home, a record listing at $18 million which reportedly sold for more than $14 million, only held the regional record for a few weeks before it was eclipsed by this week’s $22 million deal.
Tom Offermann Real Estate principal Tom Offermann said supply was tight in the north and Noosa was attracting buyers “from across the nation and the globe”, creating strong competition from “very financially capable people” for blue-chip property.
He said many were now seeing Noosa as a northern suburb of Brisbane and even Sydney, “even Toorak in shorts for Melburnians”, based on the swathes of investors and sea-changers flocking to the market.
Mr Offermann said expats from London, Dubai, Hong Kong, Shanghai and Singapore had all been “very active” in the past 12 months.
He’s even established a Brisbane-based agent, to further cater to interest from outside the Sunshine Coast region.
“Running an agency with myriad clients from all over the world creates different challenges compared to typical domestic agency, but it’s always exciting, working with marketing strategies to benefit our clientele, wherever they’re located in the world,” Mr Offermann said.
While the headline-grabbing homes are largely situated in the northern areas, there is plenty of strength in the central Sunshine Coast market according to long-time agent Brett Graham.
The director of six Ray White offices has been in the industry for more than 30 years.
He said a sluggish start to January, expected as families got back into routines, had been replaced by a rampant market which he said had “escalated dramatically”.
He said there was plenty of market movement from Caloundra all the way to Noosa and across a number of price ranges, from the $300,000-plus market to the high-end sales.
Importantly Mr Graham said they were experiencing a lot of strength in the $550,000-$700,000 range, which he said was a true indicator of a market’s health, as it was the “mum and dad” buyers clearly satisfied with their jobs, income and other factors, prepared to move on established, family homes.
Mr Graham didn’t believe stock was in as short supply, but that it was simply selling much more quickly.
“We’re listing the same amount of stock every month,” he said.
“The second-hand market is quite strong.”
Mr Graham said the maturing of suburbs like Sippy Downs and Brightwater (Mountain Creek), from “childhood” suburbs into adolescence and adulthood had driven real strength in those markets, while Buderim continued to perform well.
He believed the high-end buyers were being attracted to the region’s lifestyle.
Over the last 10 years, Brisbane has suffered the GFC and floods. As a result, prices are now extremely affordable for a capital city. The Brisbane market has some of the best growth prospects nationwide, so let’s explore why this market is set to take the gold medal for capital growth.
Since the GFC, net migration levels have been very poor for Queensland. However, net interstate migration to Queensland has tripled over the last three years. Interstate migration to Queensland fell to a low of 5,753 in 2014, increasing to 11,581 in 2016 and 15,716 in 2017.
The majority of these people are moving from Brisbane, the Sunshine Coast and the Gold Coast. This increase in migration levels is due to housing affordability compared to other states, improving employment markets and the lifestyle factors that come with those two factors.
There is a surge of major development and infrastructure projects currently underway in Brisbane, to the sum of $12 billion.
Examples of these major projects are:
Queens Wharf ($3 billion) – Comprising of 1,000 hotel rooms across five hotels, a residential precinct of 2,000 units, a 100-metre sky deck, 50 bars and restaurants and a pedestrian bridge connection to Southbank. This will completely reshape the Brisbane’s river CBD precinct.
Cross River Rail ($5.4 billion) – The project will deliver a 10.2-kilometre rail link from Dutton Park to Bowen Hills, with 5.9 kilometres of tunnel under the Brisbane River and CBD, connecting to both northern and southern rail networks in and out of the CBD.
Brisbane Quarter ($1 billion) – This project is a mixed-use precinct incorporating office, retail, hotel and residential uses.
Brisbane Live ($2 billion) – A new entertainment precinct located on top of the Roma Street rail interchange hub. Facilities include a $450 million, 17,000-seat arena along with multiplex cinemas, an amphitheatre and proposed commercial, residential and hotel towers.
Last year was one of the strongest years for job growth in Brisbane’s history. In the last 12 months, Brisbane’s jobs growth has increased by 7.6 per cent. As a result, unemployment has fallen across the board to 5.5 per cent.
Recent jobs growth has been driven by Queensland’s service industries. While the resources sector has cut 22,000 jobs over the past two years, four other industries each created more jobs than were lost in the resource sector over that period: health, education, professional services and accommodation and food services (which is closely related to tourism).
The median dwelling across Brisbane cost 6.3 times higher than the median household income. As a comparison, Sydneywas ranked the second worst most unaffordable market in the world. House prices are a whopping 13 times higher than the median household income.
These factors are significant for Brisbane’s capital growth prospects over the coming years. Well-located houses (not units) are expected to be some of the best preforming sub-markets in Australian real estate.
The state government’s planned property tax increases risk wiping the state off the global investment map, warns Chris Mountford,
executive director of Property Council Queensland.Kevin Farmer
THE state government’s planned property tax increases, due to come into effect on July 1, risk wiping the state off the global investment map.
As the government begins work on the State Budget, the Property Council is ramping up efforts to highlight the hidden effects of the tax hikes.
These tax hikes will increase the cost of doing business, damage Queensland’s economic competitiveness and impact on every Queenslander.
With Queensland preparing to leverage the Commonwealth Games to attract new investment opportunities, these tax increases couldn’t come at a worse time.
Election campaign costings, released in the days prior to the November 2017 state election, revealed the government’s intention to introduce new land tax thresholds for aggregated land holdings with an unimproved value above $10 million.
Individuals, companies and trusts who are within this new threshold will be subjected to a 25% increase in the rate of land tax from July 1.
The government has also committed to increasing the stamp duty surcharge on foreign buyers of residential property from 3% to 7%.
The end result of this decision will be higher business rents, higher costs for new homes and damage to Queensland’s reputation as an investment destination.
Businesses who lease premises from larger landlords can expect additional rental and occupancy costs.
New homebuyers can expect an additional $800-$1000 added to the cost of purchasing a new home.
We once were able to lure investment from interstate and overseas with attractive tax rates, but we now find ourselves uncompetitive with our southern neighbours.
The Property Council is calling for the government to abandon the tax increases and commit to review and modernise Queensland’s property tax framework.
Our current land tax thresholds haven’t been changed in a decade, leading to significant bracket creep as property values have increased dramatically.
We need a simpler, fairer and more attractive property tax system to unlock investment and create jobs.
An all-encompassing review of Queensland’s outdated thresholds and property tax rates needs to be undertaken to put Queensland back on the investment map.
Chris Mountford is executive director of Property Council Queensland.
Interstate migration to the Sunshine Coast is tipped to help drive up property prices. Picture: Lachie Millard
INTERSTATE migration is once again driving up demand for Sunshine Coast property.
New analysis of the market by RiskWise Property Research predicts solid capital growth for the region as a result.
RiskWise CEO Doron Peleg said the area had experienced “consistently strong population growth’’ in the past five years and predictions were that this would continue.
The Sunshine Coast market has been widely tipped by real estate analysts to experience a lift in prices, after a series of lean years.
The high-end Noosa market in particular has fired up again with a series of record breaking beachfront sales, but it was also the affordability of many of the Sunshine Coast suburbs that Mr Peleg said was helping attract new residents.
“The area’s affordability has been a major drawcard behind this migration, especially for large numbers of interstate purchasers who can’t afford to buy such great lifestyle properties in places like Sydney and Melbourne,” he said.
Also helping drive demand and future capital growth, according to Mr Peleg was the low number of building approvals in the region.
21-23 Webb Rd, Sunshine Beach was listed for a massive $22 Million. Picture: Paul Smith
He said there were only 3323 house building approvals in the pipeline across the entire region and that would be quickly absorbed.
There are also approvals for 2581 new units to be added in the two years.
Mr Peleg said there had already been 7.1 per cent median house price growth for houses on the Sunshine Coast and 5.4 per cent median unit price growth in the past 12 months.