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Southeast Queensland property sought by investors priced out of southern markets



REAL estate investors priced out of southern capitals have begun house-hunting where prices are about half that of Sydney and Melbourne.

The Brisbane-Gold Coast corridor of southeast Queensland is on the cusp of a boom, according to buyers agency Oasis Property chief executive Gavin McPherson, with double-digit growth forecast.

Affordability was a massive driver for buyers, as was good rental returns and strong long-term growth prospects, he said.

“In southeast Queensland, house prices are up to 55 per cent cheaper than Sydney. I’m not suggesting it will get anywhere near Sydney, but we’re anticipating a 30 per cent rise.”

Good pickings in southeast Queensland had driven a “really substantial” surge in ­interest from Sydney buyers, property investment firm Binvested’s Nathan Birch said.

“I pick up between 50-100 properties in a month. In the past, 80 per cent of the stock was in Sydney. Now 80 per cent is in Brisbane and the Gold Coast. People are priced out of Sydney, where the market is becoming unaffordable.”

He said that in southeast Queensland you could still pick up a three-bedroom townhouse in the mid-$300,000s and have positive cashflow.

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“I think there’s very, very unvalued property up there,” Mr Birch said.

“I’ve been getting thousands upon thousands of emails a week about Brisbane and the Gold Coast. The boom has started, and by 2016-17 will be in full swing.

“It reminds me of the Sydney market three to four years ago. Prices have started to move and there is not much stock out there.”

The latest Place Advisory Investor Sentiment Survey 2015 found apartments made up a third of investor interest in Brisbane, with available stock now down to just five months’ supply — less than half normal market conditions.

In comparison, investor interest in detached houses plunged to just 37 per cent, said report author Lachlan Walker — a major shift given detached houses made up 53 per cent of investor preferences last year.

Gold Coast property is in hot demand, along with that of Brisbane.

Gold Coast property is in hot demand, along with that of Brisbane.

He said demand was highest for stock in the $350,000 to $550,000 range, which in Sydney and Melbourne meant an inner-city studio apartment, while in Brisbane it was a luxury one-bedroom or lower-end two-bedroom unit within 5km of the CBD.

“Whatever comes on the market is quickly sold,” Mr Walker said.

“We are in a market where, yes, there is a lot of stock, but there is also a high demand for stock.”

One in five people sinking their funds into the hot Brisbane market were bullish, expecting 8 per cent growth, while two in five expected between 4 and 6 per cent, the survey found.

Audiologist and university sports coach David da Silva chose Brisbane’s growing apartment market for his next investment, buying into the 38 High Street, Toowong development which is currently under construction. It was expected to open for tenancy mid next year.

“I (bought off the plan) a while ago,” he said.

“Mine has views of river and university for approximately $500,000. The potential to grow is why I bought it. Toowong’s an affluent area, with good access to the CityCat, trains, buses and university. I did really well out of my last one so I’m happy to get one closer to the city now.”

Originally published as What’s behind southeast’s next boom

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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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