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Promising signs for capital gains in detached dwellings



THE pace of annual capital gains in Australia’s property market has bounced back to the highest level since April 2014.

Nick Clatworthy of InProperty with Rhonda Carter of Ray White Caloundra and Dan Sowden of Ray White Maroochydore

Nick Clatworthy of InProperty with Rhonda Carter of Ray White Caloundra and Dan Sowden of Ray White Maroochydore

At the same time it is clawing back the ground to be near the highs of July 2007 and 2009 yet still short of the heady days of 2001.

The outlook for the Sunshine Coast reflects a similar pattern with median house prices already ahead of 2007 and 2009 with 5.5% growth in the past year. Yet the unit market is flatter, showing 3.5% growth in the past 12 months yet -2.7% for the five years.

At the REIQ Sunshine Coast regional lunch at Maroochy Surf Club last Thursday CoreLogic Queensland sales manager Robert Castorina said detached houses in the region were outperforming units and selling at a much faster rate.

Residential real estate underpins Australia’s wealth and has reached $6.0 trillion, Mr Castorina told the lunch meeting, with an $0.8 trillion rise in the past 18months.

That is mainly Sydney and Melbourne but also Queensland with capital gains increasing 11% nationally in the past 12 months.

At the same time turnover of sales is up 2.5%, particularly in New South Wales.

Turnover of property in Queensland is up 3% in 12 months.

Sunshine Coast house prices are up 5.5% in the past 12 months from $470,000 to $496,000. That shows a lift of 3.9% in five years.

The amount discounted on asking price has dropped from 5.3% in 2010 to 4.6% in 2015.

Yet it is the average days on market for a property to sell that has shown significant change, down from 73 days five years ago to 55 in May 2015.

Units remain sluggish with 3.5% gain in 12 months yet still down 2.7% over the five years.

Median discounts for units are 4.8%, down from 5.5% and selling time at 70 days as compared to 67 days in 2010.

St George Bank business development manager Adam Baily told the meeting that Queensland’s population was still growing and under-pinning the increased demand for housing.

In regard to fears of a housing bubble, he said Sydney and Melbourne were quite over the top but Brisbane was going nicely and had signs of growth.

Brisbane is under-supplied for housing whereas Victoria has massive over-supply, especially the Docklands unit market.

That is in strong comparison to Queensland where there is a healthy appetite for units.

Lending in the Queensland market for both investors and owner-occupiers is trending up.

He said investors in Queensland were in a good situation while in Sydney the financial sector is trying to reduce that.

Mr Castorina said the shortage of stock was what affected the change in the market.

He urged people in the property industry to be aware of the changes in the way the market was now operating.

Mobility is everywhere, and there was no better example than between the 2005 and 2013 crowning of the Pope. In 2005 there was hardly a mobile phone visible yet in 2013 there was a sea of them recording the event.

“Buyers are on a journey,” he said. “They are doing their research first.

“Agents need to improve the value of service. Ask yourself, how do you stand out from the crowd?

“Early adopters are the best performers, they are the ones sharing information.

“Know your market, what has sold, what’s available.

“Be professional, share your expertise … understand the power of lifelong relationships.

“It’s no use hiding what’s happening in your area.”

He urged agents to measure everything they do, not just the size of the property, but how they are performing and what property in different postcodes is doing.

“Change is not a decision, it’s a process,” he said.

“Be prepared to embark on the journey.”

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Real Estate

Sunshine Coast houses taking less time to sell



sunshine coast property market

THE time it takes to sell a Sunshine Coast house is getting shorter despite an increase in the number of properties on offer.

In the 12 months to August 31, it took an average 85 days for houses across the council area to change hands.

The figure was two days less than for the previous 12 months when homes were on the market for about 87 days.

Real Estate Institute of Queensland data shows 7476 Sunshine Coast houses were listed for sale in the year to this August, an increase on the previous year when 7074 were on the market.sunshine coast property market

The average vendor discount on Sunshine Coast houses remained the same at 5.6%.

The average percentage of profit-making resales rose over the 12 months from 82% in 2014 to 89% in 2015.

In Noosa, 2031 houses took an average 104 days to sell in 2015, compared to 2025 taking an average 107 days the previous year.

Profit-making resales are where a home is bought and then resold within 12 months for a profit.

Vendor discount refers to the difference between the price a property sells for and the price it was first advertised at when it was put on the market.

The figure is an average of all non-auction sales selling for less than their initial asking price. –


Sunshine Coast local government area August 2014-August 2015 house sales

Listings, average days on market, average vendor discount, % of profit-making resales

7476, 85, 5.6%, 89%

Sunshine Coast local government area August 2013-August 2014 house sales

Listings, average days on market, average vendor discount, % of profit-making resales

7074, 87, 5.6%, 82%

Noosa local government area August 2014-August 2015 house sales

Listings, average days on market, average vendor discount, % of profit-making resales

2031, 104, 6.5%, 87%

Noosa local government area August 2013-August 2014 house sales

Listings, average days on market, average vendor discount, % of profit-making resales

2025, 107, 6.7%, 81%

Source: REIQ

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Real Estate

Coast’s $4.25m property marks the best sale post-GFC



sunshine coast investment property

THE $4.25 million sale of an oceanfront property at Dicky Beach marks the best post-GFC sale in Caloundra.

The four-bedroom Mediterranean-style house at 2 Cooroora St was sold by Ray White Caloundra co-principal Andrew Garland at an in-rooms auction yesterday.

While it is not a record price for the Caloundra area, it is a great shot in the arm for the property market that was getting back to pre-GFC levels, Mr Garland said.

“We expected to sell it,” he said. “It was very well marketed.

“What it says is there is a market for top-end beachfront property, something that has been absent for a few years.

“We have had sales up to $2 million in some of the beach suburbs but this shows the top end is back. It’s an indication that if it has not caught up (to pre-GFC sales), it’s hot on its heels.”

The Cooroora St sale brings to more than $10 million the sales at auction by the Caloundra office since Saturday. Mr Garland also sold a beachfront house at Shelly Beach on site on Saturday for $3.5million.

At the in-rooms event yesterday two of the eight properties sold under the hammer, two sold prior, one is expected to be concluded today and negotiations are proceeding satisfactorily on the other three.

The multi-level Cooroora St house is arguably the closest you can get to the beach on the Sunshine Coast apart from the First Point units at Noosa Heads.

The property attracted more than 70 inspections through the auction marketing campaign.

And there were five registered bidders on the day at Caloundra Events Centre.

From an opening bid of $3 million the house eventually sold to Brisbane-based buyers with business interests in central Queensland.

Most interest in the property came from the Brisbane area, Mr Garland said, with the eventual buyers intending to use it as a beach house.

The attraction was its position, with northerly coastal views as well as back to Moffat Headland.

Being a big and spacious house with a good shell to encourage refurbishment also held wide appeal.

“The fact we had five registered bidders for both properties (2 Cooroora St and 3 Beachside Ct) shows there is strength in that top-end market,” Mr Garland said.

He said it also showed a change in direction for buyers as it was likely that in previous years they would have looked at the Gold Coast first or some places further north.

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Real Estate

Is this Australia’s best place to retire?



With picturesque beaches, amazing weather, a friendly atmosphere and plenty of open spaces, it’s easy to see the appeal of retiring on Australia’s east coast.

Based on recent trends, one area seems to appeal to new retirees more than any other: the Sunshine Coast. (more…)

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