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Demand driving up real estate prices

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They may quote slightly different numbers, but real estate market watchers seem to agree that the Sunshine Coast is starting to feel some of the heat from the Lower Mainland’s exploding housing prices.

Some analysts have also suggested the Sunshine Coast market, as well as markets in places like Qualicum Beach, Nanaimo and Victoria, is being driven by more than just high demand.  They’ve seen a demographic shift, as aging baby boomers “cash out” of their high-priced Lower Mainland properties.

Gary Little, a real estate agent who’s been closely tracking Sunshine Coast market statistics since 2009, says that matches what he’s seeing.

“In general, most of my clients tend to be in their 50s or more,” Little said. “That’s actually been quite common for some time. But I can tell you the last few deals I’ve done, the clients came from Vancouver, Port Moody, Delta and North Vancouver.”

Little also believes it’s driving up prices to their highest levels in years, with more properties going for prices above asking than before.

“They [Vancouver-based buyers] came over here and sort of caught us by surprise. They initially took up the best properties and the inventory goes down. And, there’s more people coming and they’ve got money, so it drives the prices up … I see it day-to-day,” Little said.

“What we’re seeing now is the asking price is starting to inch up, we’re seeing activity, we’re seeing quick sales.”

Realtor Kenan MacKenzie told Coast Reporter his experience has been a little different. He said he’s definitely seen a spike in activity, high prices and even bidding wars. But he’s not convinced older baby boomers selling expensive Vancouver real estate and using the profits to buy here is the biggest reason behind it.

MacKenzie said he’s seen younger buyers bypassing the overheated Lower Mainland market altogether and looking to the Sunshine Coast for more affordable options, and the hottest market segment is properties under $500,000. MacKenzie also said other factors are coming together to drive the Coast market higher.

“I think we’ve set ourselves up for the perfect storm,” he noted. “We have Chinese investors on the Sunshine Coast who have bought into business and are buying homes to live here, you’ve got young people trying to move [here], you’ve got the boomers trying to move [here], you’ve got Americans potentially coming back into the marketplace.”

Both men agree that the market conditions are unprecedented and it’s largely a case of simple supply and demand. MacKenzie and Little estimate the stock of detached homes on the market right now is about 300, which is fewer than needed to fill the needs of potential buyers.

The Real Estate Board of Greater Vancouver’s latest numbers show the benchmark price of single-family detached home on the Sunshine Coast hit $399,600 in February, up 13.8 per cent over last year. Little uses a slightly different method to crunch the data, and his analysis shows a median price (meaning half of the sales were higher and half lower) of $451,000 in February, with a “12-month rolling average” of $427,026.  No matter which number you use, it’s a significant increase.

“In 21 years as a realtor I’ve never seen a market as active as we have now, because basically there’s more buyers than we have product for,” MacKenzie said.

According to Little, one key difference between the Lower Mainland and Sunshine Coast markets is the motivation of the buyers. He said the fears over speculation being seen in the Vancouver area aren’t being reflected here.

“They’re actually moving, I don’t think we’re seeing any speculation over here. I don’t think anybody’s buying over here and saying, ‘I’m going to sell again in three months for more money,’” Little said. “Most people are coming over here to live.”

While an influx of buyers of any sort is good news for people with property to sell, the possibility that the trend-behind-the-trend is accelerating the growth of the 60-plus demographic on the Sunshine Coast creates challenges.

Projections from BC Stats say the proportion of people over 60 on the Sunshine Coast will hit 39 per cent by the end of this year, compared to 33 per cent in 2011. By contrast, the percentage of people 30 to 59 is expected to drop from 41 per cent in 2011 to 36 per cent by the end of this year.

Anne Titcomb of the Sunshine Coast Seniors Planning Table told Coast Reporter the demographic shift is something recent Vital Signs reports have predicted, and getting ready for it was one of the reasons the Planning Table was formed.

Titcomb said while the obvious impact is a need for more services for seniors and planning approaches that take an aging population into account, the change could also affect the younger demographic the area is trying to attract.

“With the rise in the cost of housing that seems to be happening here now, I worry about the tipping of the scale – it’s never good to have a big imbalance in population – but I’m more worried about the ‘worker bees’ being able to afford housing now,” Titcomb said.

“We want to have people available to support seniors.”

That’s a worry for MacKenzie, too. As increased demand leads to more construction, he said, builders could see a shortage of workers in the trades, and those who move here to fill the gap could have a hard time affording homes.

– See more at: http://www.coastreporter.net/news/local-news/demand-driving-up-real-estate-prices-1.2195229#sthash.Jpt6rTAa.dpuf – See more at: http://www.coastreporter.net/news/local-news/demand-driving-up-real-estate-prices-1.2195229#sthash.Jpt6rTAa.dpuf

 

Original Publish: http://www.coastreporter.net/

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Top 68 suburbs for growth in Queensland revealed

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Top 68 suburbs for growth in Queensland revealed

Top 68 suburbs for growth in Queensland revealed. New data has shown the top 68 suburbs in Queensland for capital growth over the last 12 months to June, with the number one spot reaching triple digits.

Top 68 suburbs for growth in Queensland revealed

Outlined in the Real Estate Institute of Queensland’s Queensland Market Monitor report, REIQ CEO Antonia Mercorella said despite the ‘doom and gloom’ of the property market, there are still locations that are seeing large gains in profitability.

“A total of 68 suburbs throughout Queensland have delivered double-digit growth over 12 months, which is a really strong result,” Ms Mercorella said.

“And there are many more suburbs delivering strong single-digit growth. It’s a great market to be in at the moment.”

While south-east Queensland saw a lot of attention, there were some high growth suburbs found in central and northern Queensland.

The area with the strongest growth was Blackwater, which saw a rise of 151 per cent growth, which Ms Mercorella attributed to the resurgence of coal prices.

Aside from Blackwater, 10 other suburbs saw growth over 20 percent. These included:

  • Spring Mountain with growth of 103.6 per cent;
  • Collinsville with growth of 46.2 per cent;
  • Minyama with growth of 45.8 per cent;
  • Hamilton with growth of 32.9 per cent;
  • Hollywell with growth of 30.5 per cent;
  • Miles with growth of 23.5 per cent;
  • Mount Coolum with growth of 21.9 per cent;
  • Dundowran beach with growth of 21.5 per cent;
  • Boonah with growth of 21.3 per cent; and
  • Idalia with growth of 21.3 per cent.

Ms Mercorella said the top 11 suburbs were indicative of steady growth across the state, but warned against calling it a ‘boom’.

“While we’re definitely seeing prices come back in western Queensland mining towns, such as Blackwater, these prices are still below their peak,” she said.

It’s unlikely we’ll see a return to pre-2013 prices in those areas anytime soon.”

South-east Queensland

While the top 11 suburbs show a spread of high growth suburbs through the state, 41 suburbs out of the 68 are located in the ever-popular south east corner of Queensland.

Of these, 15 suburbs were located in the Sunshine Coast region, with the highest growing being Minyama, which ranked fourth overall.

The Brisbane region also saw a large number of high performing suburbs at 13. Hamilton was the region’s best performer and fifth overall.

Next was Ipswich with six suburbs, then the Gold Coast with four, Moreton Bay with three, while Redland and Logan suburbs did not rank.

Regional Queensland

Outside of south east Queensland, 27 regional suburbs ranked on the list, with the Townsville region recording four suburbs. Its highest performer was Idalia, which ranked 11th overall.

Next were the Cairns and Gympie regions, both recording three suburbs each. Cairns’ top performer was Palm Cove, which ranked 26th overall, while Cooloola Cove was Gympie’s top performer, which ranked 42nd overall.

While only recording one suburb, the Whitsunday region’s Collinsville ranked third overall.

The Bundaberg and Toowoomba regions both recorded two top suburbs, while the Banana, Charters Towers, Fraser Coast, Gladstone, Isaac, Livingstone, Mackay, Rocky, Scenic Rim, Somerset and Western Downs regions all had one top suburb each

The top 68 suburbs which experienced double digit growth over the last year to June 2018, according to the REIQ, are:

RankSuburbMedian priceCapital growth over 12 months (as a percentage)
1Blackwater$94,250151.3%
2Spring Mountain$450,000103.6%
3Collinsville$95,00046.2%
4Minyama$1,310,00045.8%
5Hamilton$1,442,00032.9%
6Hollywell$810,00030.5%
7Miles$148,25023.5%
8Mount Coolum$670,00021.9%
9Dundowran Beach$607,00021.5%
10Boonah$324,50021.3%
11Idalia$485,00021.3%
12Rasmussen$347,50019.9%
13Yaroomba$749,00019.7%
14Biloela$272,75018.6%
15Burnett Heads$317,00018.1%
16Tivoli$295,00018.0%
17Cashmere$690,00018.0%
18Walloon$370,00016.7%
19Sunshine Beach$1,400,00016.7%
20Noosa Heads$1,070,00016.0%
21Hope Island$739,75015.7%
22Ripley$374,00015.4%
23Sandgate$705,00015.2%
24North Ward$575,00015.0%
25Paddington$1,150,00014.7%
26Palm Cove$606,00014.3%
27Charters Towers City$142,50014.0%
28Pelican Waters$761,00013.9%
29Cooee Bay$313,00013.8%
30Mount Ommaney$944,00013.7%
31Fernvale$357,50013.5%
32The Range$380,00013.4%
33Landsborough$432,50013.4%
34Sunnybank$832,50013.3%
35North Mackay$270,00013.2%
36Whitfield$540,00013.1%
37Graceville$932,50013.0%
38Hendra$1,100,00012.7%
39Shorncliffe$840,00012.4%
40Moranbah$185,00012.1%
41Coes Creek$442,50012.0%
42Cooloola Cove$317,50012.0%
43Battery Hill$578,00012.0%
44Seven Hills$940,00011.9%
45Nundah$755,00011.9%
46Monkland$240,00011.6%
47Bongaree$470,00011.6%
48Clifton Beach$557,50011.5%
49Maroochydore$639,00011.2%
50Twin Waters$823,00011.2%
51Cambooya$322,50011.2%
52Tewantin$572,50011.2%
53Coolum Beach$675,25011.2%
54Kedron$744,50011.1%
55Sunrise Beach$820,00011.0%
56Oakey$241,50011.0%
57D’aguilar$416,00010.9%
58Mountain Creek$610,00010.9%
59Flinders View$371,50010.9%
60Highland Park$570,00010.7%
61Rosewood$291,00010.7%
62Bulimba$1,300,00010.6%
63Kirkwood$353,50010.5%
64Woodgate$402,50010.3%
65Railway Estate$309,50010.1%
66Auchenflower$1,070,00010.0%
67Rainbow Beach$489,50010.0%
68Ormeau Hills$530,00010.0%

Source: brisbaneinvestor.com.au

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Qld home values rise in 12 months

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Queensland

HOME values rose in seven of Queensland’s nine subregions in the past year, despite widespread fears of a cooling housing market.

It comes as Brisbane is ranked 20th on a global list of cities measuring residential property price growth over the past year, with the city recording above average 3.5 per cent growth.

Research from property data supplier CoreLogic reveals the Sunshine Coast recorded the biggest rise in home values over the past 12 months – increasing 6 per cent.

Queensland
Homes on the Sunshine Coast recorded a 6 per cent rise in value over the past year. Photo: Lachie Millard.

Homes in Brisbane’s western suburbs increased in value by 4.4 per cent in the same period, followed by Moreton Bay South, with a gain of 2.5 per cent and inner Brisbane with a rise of 2.1 per cent.

Home values in Logan, Brisbane’s eastern suburbs, Gold Coast, Wide Bay, Brisbane’s north and Moreton Bay North also rose marginally.

At the same time, only one of Sydney’s 15 subregions recorded an annual rise in home values.

Queensland
Seven out of Queensland’s nine subregions recorded growth in home values in the past 12 months, according to CoreLogic. Photo: Glenn Hunt/Getty Images.

CoreLogic head of research Tim Lawless said that with property values falling across four of the eight capital cities over the past twelve months, it was easy to forget some housing markets around the country were actually seeing relatively healthy and sustainable growth.

Almost half of Australia’s 88 SA4 subregions recorded a rise in dwelling values over the past twelve months.

Regional areas of the country are more likely to be showing positive growth conditions, with 57 per cent of all regional areas recording a rise in dwelling values over the year, compared to only 39 per cent of the capital city subregions.

Mr Lawless said the ‘healthier’ conditions across the regional markets could probably be attributed to more sustainable growth conditions during the growth phase, compared to the likes of Sydney and Melbourne.

Related article: Mortgage holders rejoice most Qld homes rose in value over the past year

Queensland
CoreLogic head of research Tim Lawless, pictured in Sydney.

“The more sustainable history of price growth has kept a lid on housing affordability and made these markets attractive to migrants, particularly those areas where economic conditions are buoyant,” Mr Lawless said.

“A ripple of demand has been emanating from the largest capitals towards the satellite cities where housing is generally more affordable and lifestyle factors can be appealing.

“Many coastal and lifestyle markets have benefited from a rise in buyer demand, either from those looking for a new residence, second home or investment option.”

Mr Lawless also said many of the hard hit mining regions had now levelled out and were starting to show growth.

He said the data highlighted the diversity across Australia’s housing markets.

“While conditions are broadly slowing, especially around Sydney and Melbourne, many areas of the country are benefiting from a history of more sustainable growth rates, improving demand and reasonably strong economic conditions,” Mr Lawless said.

It comes as Knight Frank ranked Brisbane 20th on its Prime Global Cities Index.

Sydney came in 17th place, Melbourne sits in 21st place and Perth sits in 24th place.

“Despite a cooling mainstream market off the back of tighter lending practices, Australian prime markets continue to experience growth with buyers less impacted by these measures,” Knight Frank’s head of residential research Australia Michelle Ciesielski said.

Source: www.sunshinecoastdaily.com.au

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Maroochydore: ‘Connected yet quiet’ suburb growing fast

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sunshine coast
Experts are hailing the Sunshine Coast as Australia’s next property market hotspot, with the beachside suburb of Maroochydore set to reap the benefits.

According to Hotspotting.com.au, the Sunshine Coast is currently at the start of a long-term growth cycle.

“Momentum started building two years ago and has really been increasing over the past 12 months, and we’re now seeing that translate into solid growth,” founder Terry Ryder says.

In the housing market, many suburbs have had double-digit growth over the past year, with many others close to 10 per cent, he adds.

The growth is all due to the fundamental change that has taken place on the Sunshine Coast, with strong infrastructure spending and a broadening economy moving away from its reliance on tourism.

“It’s really all about infrastructure spending,” Ryder says. “The total list of projects recently completed or under construction is over $20 billion, which is huge for a city of this size.”

The $2 billion Sunshine Coast University Hospital, which opened in April 2017, was a significant project for the region, along with the $150 million private hospital built in association with it.

Current major projects include a $1 billion upgrade to the Bruce Highway, a $347 million expansion of the Sunshine Coast Airport and the creation of a new $430 million Maroochydore City Centre, which will include commercial, retail, entertainment and residential components.

“All of this brings new businesses into the Sunshine Coast, diversifies the economy and creates a lot of jobs,” Ryder says.

He says Maroochydore was the logical choice for a new CBD in the region, being not only at its geographical centre, but also its “nerve” or commercial centre.

The Milk Bar Coffee Co owner and chef Alex Cossell decided to open his business on Maroochydore’s Sixth Avenue, just one block from the beach, more than two years ago, identifying an opportunity in what he describes as a “central hub” filled with plenty of locals and tourists.

sunshine coast
Rise apartments will have unspoiled views of the ocean. Image: Supplied

“The cafe culture is epic,” Cossell says. “There are plenty of amenities within the area too, with great parks and playground areas for the young families.”

Cossell believes Maroochydore will be completely different in five years’ time.

“It is definitely growing at the moment, with so much more expansion in the works with the new CBD development just around the corner.”

Plenty of buyers, particularly locals, are also excited by what’s taking place in and around Maroochydore. They’re being drawn to the thriving area, taking advantage of the chance to buy before is it completely revitalised.

Rise Maroochydore Beach, a new luxury ocean-view development offering 48 apartments, is proving to be one popular opportunity.

The 12-storey building, situated on Sixth Avenue in the Cotton Tree neighbourhood of Maroochydore, received more than 700 expressions of interest prior to its launch, according to Colliers International.

Related article: What we need to future proof south east Queensland

sunshine coast
The development includes four-bedroom apartments. Image: Supplied

It appeals to owner-occupiers as it has generously sized two- and three-bedroom configurations, as well as two-level, four-bedroom penthouses, with prices ranging from $500,000 to $3 million.

“The Sunshine Coast used to be known for Mooloolaba and Noosa, but it’s becoming a lot more known for Maroochydore,” says Daniel Hirst of Colliers International, who is marketing Rise.

“Mooloolaba and Noosa are more holiday accommodation areas, while the Maroochydore and Cotton Tree areas are becoming a preferred residential choice for people who want to live in high-quality luxury apartments and have restaurants close to hand.

“They are professional couples in their mid-40s, people upgrading with young families, downsizers, retirees and semi-retirees.”

Rise offers a point of difference to other apartment developments, Hirst says, in that it benefits from Maroochydore’s growth but it’s not right in the hub of all the activity. Rather, it’s within easy walking distance.

“It’s connected to everything but it still has a quiet lifestyle,” he says. “You can walk a couple of hundred metres to the beach, restaurants and cafes, but you don’t have all the foot and vehicle traffic at your front door.”

Rise is also unique in that it offers the closest new apartments to the ocean in Maroochydore, with development of this scale currently not allowed any closer – which also means the views can’t be built out.

Source: www.domain.com.au

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