WHILE the home market on the Sunshine Coast is very strong, when it comes to units, the latest data tells a slightly less impressive story.
However, experts say the unit market will follow the path of houses and present strong figures in coming months and years.
The Real Estate Institute of Queensland’s Market Monitor report says the supply of units on the Sunshine Coast increased 6.4% for the 12 months to May 2017 – although it says this is not a concern as listing volumes for the Sunshine Coast fell 12.9% from February to May this year, revealing a seasonal supply increase rather than a sustainable increase.
The REIQ’s figures reveal the median unit price for the most recent quarter was $385,000, down slightly (3.6%) on the previous quarter, up 3.3% on last year, and up just 15.7% on five years before.
Luke Carter, of Harcourts Caloundra, believes negative media surrounding the unit markets in Sydney and Melbourne have made buyers a little wary, but says he is still seeing solid sales.
“The stories around the oversupply of units in those capital cities definitely has an impact on perception of the unit market,” Mr Carter said.
“But here in Caloundra, there is actually a shortage of owner/occupier units.
“There was a definite upswing in the housing market in January and February this year, and I have seen up to 20% price growth since then. The unit market tends to follow that. A lot of wealthier clients who are living in these big houses here want to downsize from houses to units, but owners have been waiting for house prices to improve before they purchase a unit.
“While our unit market is still reasonably weak, it is definitely strengthening.
“From an investment perspective, we still have units here on the Sunshine Coast under $300,000 that are going to give a 5% yield. I’m surprised they haven’t walked out the door, and I do attribute that to the negative press surrounding the unit market in our capital cities.”
REIQ Sunshine Coast zone chair Amber Werchon, principal of Amber Werchon Property, says: “Units are sitting on the market slightly longer than houses, with an average of 57 days to reach a sale.”
Overall, Ms Werchon says Alexandra Headland is a standout if looking at the five-year figures.
“It continues as a benchmark due to its location and significant rebuilding. Buderim continues to perform well with 107 sales (overall) for the June quarter, more than any other suburb,” she said.
“Some areas around the Sunshine Coast have dipped over the past quarter, however, overall the market is performing very well if you look at the long-term figures.
“There is a lot of confidence in this region, which is driving significant levels of investment. The Sunshine Coast market is very buoyant on the back of massive public and private infrastructure investment being made.”
Originally Published: www.sunshinecoastdaily.com.au
Brisbane’s population picks up, but more people moving to Pimpama
Brisbane’s population hit 2.4 million in June 2017, according to ABS figures.Source:Supplied
BRISBANE is back among Australia’s fastest-growing cities thanks to a growth spurt, but more people are flocking to areas outside the state’s capital.
New figures from the Australian Bureau of Statistics show the city’s population grew by 48,000 in the year to June 2017 to hit 2.4 million — the fastest rate of growth in four years.
Births accounted for 37 per cent of the growth, while interstate migration accounted for 25 per cent.
The fastest and largest-growing area in Queensland is Pimpama on the Gold Coast, which grew by 3000 people or 31 per cent in 2016-17.
An aerial shot of Pimpama on the northern end of the Gold Coast. Picture: skyepicsaerialphotography.Source:Supplied
Other areas to experience significant population growth include Jimboomba on the southern outskirts of Brisbane, North Lakes-Mango Hill in the Moreton Bay region, Coomera on the Gold Coast and Springfield Lakes in Ipswich.
ABS demography director Anthony Grubb said the latest population estimates were the first to include data on the components driving population growth in capital cities and regions.
“It is now possible to not only see how much population is changing in an area, but to understand why this change is occurring”, he said.
Michael Matusik, director of independent property advisory Matusik Property Insights, believes Queensland’s improving population growth should impact house prices, but it hadn’t so far because the state’s economy also needed to improve.
Mr Matusik told The Courier-Mail Pimpama’s population was growing at a rate he didn’t believe was sustainable.
“It’s a reflection of where land supply is on the Gold Coast at the moment and I think that will calm down,” he said.
“But if the Gold Coast is going to continue expanding, those areas will become more like North Lakes in due course.”
Sydney’s population grew by just over 100,000 people in one year for the first time, taking that city’s total numbers to 5.1 million.
Australia’s big east coast cities carried most of the growth — Melbourne, Sydney and Brisbane accounted for over 70 per cent of Australia’s population increase.
Darwin, Adelaide and Perth grew at 1 per cent or less.
TOP FIVE POPULATION GROWTH AREAS IN QLD
Suburb Population change 2016-17 Population as at June 30, 2017
1. Pimpama, Gold Coast 30.8% 12,586
2. Jimboomba 7.9% 28,639
3. North Lakes-Mango Hill 6.7% 33,225
4. Coomera 10.3% 15,227
5. Springfield Lakes 8.7% 17,468
Gympie region’s rental crisis hits a new low
RENTAL vacancy rates in Gympie have plunged from almost 6 per cent in June 2011, to 0.5 per cent, making it most likely the toughest rental market in Queensland.
What this means is that finding a place to rent in Gympie is hard, and rents are going up because of the high demand for what is available.
The March quarter vacancy rate data reveals generally improving rental markets across Queensland, according to REIQ’s Q1 2018 Vacancy Rate report, released yesterday.
According to the data, the only place in Queensland as tight as Gympie when it comes to finding a place to rent is Caloundra Coast. Even Noosa is easier to find a place to rent than Gympie.
Regional Queensland, in particular, has delivered good results in the wake of a two or three bleak years, the REIQ says.
CEO Antonia Mercorella said the regional vacancies improvements this quarter followed similar small improvements in 2017 Q4, and these small but steady improvements were the hallmarks of Queensland real estate.
In the Gympie region, residential vacancy rates have had a stead slide from 3.7 per cent in September 2016, to 2.1 per cent in December 2016, 2.2 per cent in March 2017, 1 per cent last December and 0.5 per cent in March 2018.
“Some of our markets, such as the Gold and Sunshine coasts, remain uncomfortably tight and we would like to see more investors enter those markets, however APRA’s tightened lending criteria is not encouraging investors to consider property. The result is tight markets remain tight, despite good opportunities for landlords in those markets,” she said.
Greater Brisbane’s vacancy rates eased by 0.1 per cent to 2.7 per cent, which remains a healthy market.
Brisbane LGA also eased 0.1 per cent to 3.1 per cent, which indicates a healthy market for a second consecutive quarter.
Ipswich tightened marginally, moving from 3.1 to 3.0 per cent, but has maintained its position as a healthy rental market.
“This area is really a growth corridor for Queensland and we’re seeing buyers and renters flocking to this part of the southeast corner. It’s great news that the rental market is maintaining its stability and healthy status,” Ms Mercorella said.
The Sunshine Coast, overall, has a vacancy rate of 1 per cent. Caloundra, along with Gympie, has the tightest vacancy rate in Queensland, with just 0.5 per cent of properties vacant.
“The Sunshine Coast is very challenging for renters who are looking for accommodation and we have said consistently for quite some time that this market would benefit from additional investor activity. The upward pressure on rents, as a result of this tight vacancy rate, will serve to push this market towards unaffordable,” Ms Mercorella said.
Noosa is also very tight, at just 0.8 per cent.
“It’s no surprise that renters are flocking to this market – it’s such a stunning part of the world with employment opportunities – but additional supply into this market would be very beneficial,” Ms Mercorella said.
Fraser Coast, which is made up of Hervey Bay and Maryborough, is a tight market, although it has eased somewhat. Fraser Coast has moved from 1.6 per cent in December to 1.9 per cent in March. Hervey Bay is now 1.8 per cent – a tight market – and Maryborough is now 2.5 per cent, which is a healthy market.
Cairns has also eased from 1.6 per cent to 2.1 per cent, moving this popular destination closer to a healthy rental market.
Bundaberg has moved from 1.7 per cent to 3.4 per cent. This is quite a jump, but there’s likely to be a seasonal factor at work here with the transfer season impacting vacancies as people move in and leave for employment factors. Bundaberg remains a healthy rental market.
In continued good news for Gladstone, this market has fallen for a third consecutive quarter. Essentially this market has improved significantly since March 2016 when the vacancy rate was 11.3 per cent.
“We are seeing some stabilisation of the market in this area, with the rental market delivering some cautiously improving. It’s been a long time coming and we’ll continue to wait and see with this region,” Ms Mercorella said.
Mackay is another good news story, with significant improvements from December 2016, when vacancies were 7.9 per cent.
“To see this market at 3.6 per cent, which although it is technically just outside the healthy range, it is still in reasonably good shape and this is very encouraging. It has been consistently improving over the past couple of years and we have much to be optimistic about,” Ms Mercorella said.
The Rockhampton vacancy rate has been somewhat volatile in the recent years, however, we are starting to see some consistent downward trends emerge. The fourth consecutive quarterly fall has resulted in the lowest vacancy rate since September 2014, of 4.1 per cent.
Toowoomba has tightened to its lowest vacancy rate since September 2016. With just 2.3 per cent vacancies, this market is in the tight range.
Townsville has tightened again and this is now the lowest rate it’s been since 2013. This is a continued good news story for this market which represents some of the best buying opportunities in Queensland at the moment. The vacancy rate is 3.8 per cent and while that is just outside the healthy range (healthy is 2.5 – 3.5 per cent) it is a vast improvement on the highest rate of 7.1 per cent in September 2016.
Buyers spend $16m-plus to snap up Qld farms at auction
THREE large farms with big skies and rolling farmland fetched over $16million under the hammer in Brisbane Friday morning.
Sunnyside in Esk – made up of a massive 21 adjoining surveyed lots, with a total land area of 2,339.85 hectares – was the biggest prize of the day, selling for a massive $10m.
Agent Jez McNamara of Ray White Rural Queensland told The Courier-Mail that it was a new benchmark for large grazing properties in South East Queensland.
“It’s been owned by the same family for four generations, they’ve built on it. It was tough decision to sell but it was time to wind up the family partnership and move on. It’s a stunning property and less than an hour from the Brisbane CBD,” he said.
The property hit the market for the first time in 33 years and includes 27 earth dams, bore, well, seasonal creeks and gullies, and also has town domestic water and access to mains water for stock water.
“Whether you wish to breed, feed-on or fatten there is easy access to cattle sale yards, feedlots and abattoirs all less then half an hour away.”
With the property at 3872 Gatton Esk Road, Esk, located so close to Brisbane, it also had potential for future subdivision subject to council approval.
Another farm “Galloway Downs” at 193 Macaulay Road, Tansey, fetched $4.3m at auction Friday morning.
The property was made up of eight titles with 360 acres of blue gum creek flats used for cropping, with the balance used for grazing.
It’s located 25km from Goomeri, just 70km from Gympie and 250km from Brisbane, according to its listing by agents Ian Newson and Janelle Duffin of Ray White – Mundubbera.
The property has a six bedroom country homestead that overlooks grazing land.
They were also responsible for the third successful auction which involved a property called Boonimba” in Windera – 50km from Goomeri and 105km from Gympie.
It had a triple whammy of wilderness, cattle and timber, all potential income sources and sold for $2.4m.
Set over 2,602hectares, it was listed as having “immediate cashflow from mature trees and income for decades to come from younger trees under Managed Hardwood Program” and also has a herd included in the sale with stunning scenery perfect for tourism options.
The property had over 6km of frontage to Barambah Creek and access to a stunning gorge, as well as lava flows, diverse native flora and fauna and potential for an eco-tourism retreat.
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