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
Queensland Budget 2018: What it Means for the Property Industry
This year’s budget focused on infrastructure, tourism and mining funding.
Property investors will also be met with a 0.5 per cent increase in the land tax rate for aggregated holdings above $10 million, as well as an increase in the additional foreign acquirer duty from 3 per cent to 7 per cent.
The government also announced it will cut back the first home owners’ grant.
So what does the state budget mean for the property industry?
Here is what you need to know.
Additional Foreign Acquirer Duty
Aligning with states nationwide, the Queensland government announced an increased rate for additional foreign acquirer duty.
The AFAD is an additional tax on relevant transactions that are liable for transfer duty, landholder duty or corporate trustee duty which involve a foreign person directly or indirectly acquiring certain types of residential land in Queensland by foreign persons.
The duty will rise from 3 per cent to 7 per cent and is forecasted to result in an increased revenue of $33 million per annum.
The state government will dedicate $4.217 billion to transport and roads.
The Sunshine State’s long-awaited duplication of the Sunshine Coast rail line received $161 million.
The Toowoomba Second Range Crossing project received $543.3 million, a route to the north of Toowoomba from Helidon to the Gore Highway.
Brisbane’s Cross River Rail received $733 million to go toward the $5.4 billion project. The federal government failed to pledge any assistance towards the Cross River Rail project earlier this year leaving the state government to foot the bill.
There’s also $487 million over four years for upgrades to the M1 on Brisbane’s south and on the Gold Coast.
First Home Buyers Grant Slashed
First home buyers have come to expect a $20,000 starter grant since 2016 will now see it cut to $15,000 if they buy a house from July onwards.
The $5,000 boost had been added to the grant in 2016 by former Treasurer Curtis Pitt, with the measure supposed to be in place for just one year.
It was extended twice in six-months until the end of 2017 and then to June of this year.
Land Tax Increase
Under the new taxes introduced in Tuesday’s budget, foreign landowners with more than $10 million worth of landholdings will now be in line for a 0.5 per cent increased rate of land tax.
Individuals with properties worth more than $10 million will now incur an additional rate of 2.25 per cent (or 2.5% for trusts or companies) for every dollar of taxable value over $10 million.
This is expected to bring in $71 million in revenue in its first year, with a projected 11 per cent increase in 2018-19 land tax revenue.
Queensland’s regional property market has emerged from its battering after the resources slowdown
QUEENSLAND’S regional property market is emerging from the battering it took during the resources slowdown with coastal towns leading the charge.
Minyama on the Sunshine Coast proved to be the best performing housing market in the entire state in the past 12 months with new figures revealing median house price growth of 43.9 per cent to $1,275,000.
Many suburbs within the Sunshine Coast performed well in the past year as did the Gold Coast.
The latest Real Estate Institute of Queensland market monitor revealed that Queensland’s regional suburbs and towns were experiencing strong population growth which had lead to growth in the local property markets.
It comes as the REIQ is once again calling on the State Government in its Budget next week to consider making the First Home Buyers grant eligible for those wanting to buy existing properties in regional towns to further help lift those markets.
Australian Bureau of Statistics figures reveal the Gold Coast, Sunshine Coast and Moreton Bay were the top preferred locations for internal migration.
REIQ CEO Antonia Mercorella said many regional towns had affordable existing properties and it didn’t help those local property markets to only reward first time buyers who built something new in the area.
The strongest performer outside of greater Brisbane, the Gold Coast and the Sunshine Coast in the past quarter was Warwick.
The Southern Downs township recorded median house price growth of 21.7 per cent in just three months to bring the current media to $280,000
Frenchville in Rockhampton was also a solid performer with 15.9 per cent growth in three months to $342,000.
In the past 12 months Boonah in the Scenic Rim was the most solid performer with 20.8 per cent median house price growth to $314,000. It was followed by Clifton Beach in Cairns where the median house price rose 19.30 per cent to $557,500.
TOP REGIONAL PERFORMERS MARCH QUARTER
WARWICK — $280,000 — 21.70%
FRENCHVILLE — $342,000 — 15.90%
EMERALD — $260,000 — 15.60%
BUSHLAND BEACH — $384,500 — 11.80%
TAMBORINE MOUNTAIN — $529,500 — 10.90%
NORMAN GARDENS — $418,500 — 8.70%
BENTLEY PARK — $375,000 — 8.40%
GYMPIE $275,000 — 7.80%
NEWTOWN — $310,000 — 6.90%
KAWUNGAN — $363,000 — 6.80%
TOP REGIONAL PERFORMERS 12 MONTHS
BOONAH — $314,000 — 20.80%
CLIFTON BEACH — $557,500 — 19.30%
RASMUSSEN — $350,675 — 15.00%
MOOROOBOOL — $408,170 — 14.60%
IDALIA — $482,500 — 14.30%
BURRUM HEADS — $409,000 — 13.60%
MORANBAH — $181,000 — 13.10%
MANOORA — $350,000 — 12.90%
HARLAXTON — $293,000 — 12.70%
BLACKWATER — $90,000 — 12.50%
Source: REIQ Market Monitor
Noosa boom: Why the once sleepy holiday town has become home to the rich and famous
Kelly Landry and Anthony Bell recently bought a house in Noosa. Photo: Belinda Rolland.Source:Supplied
WHAT do a sports star, a burger-flipping entrepreneur and a celebrity power couple have in common? A penchant for property in this idyllic, seaside town.
A CASHED-UP sports star splurged $8.4 million on an oceanfront mansion there.
A burger-flipping entrepreneur just paid a record $18 million for a piece of its real estate.
And a power couple at the centre of a high profile marriage split have spent more than $10 million on a waterfront hideaway in the town.
The exclusive seaside village of Noosa, on the Sunshine Coast, has long been a favourite holiday spot for the world’s rich and famous.
But these days, they don’t just go there to relax — they go there to live.
Just ask the likes of ex-Formula One driver Mark Webber, retail billionaire John Van Lieshout, musician Jon Coghill and former car rental boss Bob Ansett, who all call Noosa home.
Former professional tennis star Joshua Eagle also owns property in the area, while Greg ‘The Shark’ Norman is reportedly hunting for a home there.
And don’t forget Suits star Gabriel Macht, whose wife is Australian actor Jacinda Barrett, has invited the royal newlyweds Prince Harry and Meghan Markle to honeymoon at their Noosa beach house, which was bought more than a decade ago for just over $750,000.
The town’s strict population cap and laid-back lifestyle, combined with its beautiful beaches, rainforest and ecological areas, have made it highly sought-after real estate.
Local agents are reporting a resurgence in Noosa’s prestige property market, which is forecast to further gather speed as a result of strong interstate migration and infrastructure investment.
A decade on from the damage caused by the global financial crisis, the super wealthy are returning to the town in droves — and they’re happy to pay top dollar for whatever they can get their hands on.
Just last month, a Little Cove beach house owned by high profile stockbroker David Evans changed hands for $11.2 million to a Melbourne-based buyer linked to the Roger David menswear chain, after selling for only half that just three years ago.
In March this year, Noosa’s median house price reached $665,000, compared to the Sunshine Coast median house price of $563,000, according to the latest Real Estate Institute of Queensland figures.
The Noosa unit market also blossomed over the past 12 months, growing a stunning 7.1 per cent to reach an annual median price of $525,000 — the most expensive unit market in Queensland.
In fact, Noosa house prices have grown 38.5 per cent since 2013 — the strongest medium-term growth anywhere in Queensland.
Tom Offermann of Tom Offermann Real Estate, who has had a long career selling beach and riverfront mansions in the Noosa region, said he had noticed a growing trend among high profile buyers looking for holiday homes not to rent out, but to use for bringing family together.
“We’ve had a large number of people in recent months come to us citing that their intention is to purchase a holiday home so they have a place to bring the family together,” he said.
Mr Offermann said it was a “pleasure” dealing with clients at the top end of the market, who were particular about what they liked, time poor and appreciated confidentiality.
“There’s a lot of people under the radar here with hundreds of millions, or even billions, that you don’t even know of,” he said.
Adrian Reed, an agent with Dowling & Neylan Real Estate Noosaville said the Noosa region’s appeal had broadened from “its traditional base of Melbourne elite”.
“There’s significant interest now coming out of Sydney and internationally and that’s changed the profile of not only the popularity of Noosa, but who’s living and working here,” Mr Reed said.
“The ability for people to work remotely now is completely changing the paradigm and allowing people to be remote CEOs.
“The convenience of the commute or a private jet to the Sunshine Coast airport means they can operate at the highest level and live in paradise.”
Mr Reed said he expected the new-found interest in the Noosa region to increase.
“When you look at what you can get for $10 million in comparison to Sydney, Noosa is exceptional value,” he said.
THE RICH AND FAMOUS WHO CALL NOOSA HOME
Adam Scott, champion golfer
Bought an oceanfront house in Sunshine Beach for $8.4 million in April 2017.
Anthony Bell and Kelly Landry, celebrity accountant and television identity
Paid $10.3 million for a six-bedroom, waterfront home on Noosa Sound in October 2017, which was rated HIA Queensland home of the year.
Richard Branson, Virgin Group founder
Bought Makepeace Island in the Noosa river in the early 2000s for $2.86 million.
The property features a main long house with a giant bar, a four-bedroom guesthouse, several two-bedroom villas, a boat house and a lagoon pool with a lap lane, dive spots and a 15-person spa. It can accommodate up to 22 guests.
Jon Coghill, former drummer of Powderfinger
Bought a house in Marcus Beach for $1.37 million in 2014.
David Hales, Betty’s Burgers founder
Bought Pat Rafter’s property in Sunshine Beach for $15.2 million in January 2018.
David Russell, co-founder of private equity group Equis Energy
Paid $18 million for a house in Sunshine Beach in February 2018 — the highest price ever paid for a home in the entire Sunshine Coast region.
Mark Webber, former professional racing driver
Owns a house on 1362 sqm of land in Noosa Heads, which he bought for $4.9 million in 2011 from former tennis star Thomas Muster.
John van Lieshout, billionaire founder of Super A-Mart furniture store chain
Owns two houses next to each other on the canal in Noosa Heads. He bought one for $3.68 million in 2011 and the other for $430,000 in 1989.
He also owns The Seahaven Resort overlooking Laguna Bay, which he paid just over $40 million for in 2012.
Jacinda Barrett, Australian actress
Owns a beach house in Sunrise Beach, which was bought for $762,000 in 2006.
Dawn Fraser, former Olympic swimmer
Lives in a house in Noosaville. It was bought for $1.398 million in 2004.
Bob Ansett, Budget Rent A Car founder
Lives in a house in Sunshine Beach, which he bought for just $260,000 in 1987.
Carl Hartmann, entrepreneur
Owns a house in Noosaville, which he paid $3.8 million for in November 2017.
Brian White, Ray White Group chairman
Owns a unit at Little Cove, Noosa Heads, which he bought for $4.25 million in 2001.
Graham (Skroo) Turner, Flight Centre CEO
Owns a unit in the same building as Brian White.
Euan Murdoch, Herron Pharmaceuticals founder
Owns a unit in the same building as Brian White and Graham Turner.
Joshua Eagle, former professional tennis player
Owns a three-bedroom house in Sunshine Beach, which he paid $870,000 for in 2006.
Lisa Curry, former Olympic swimmer
Bought a house in Crohamhurst with her Elvis impersonator husband, Mark Tabone, in July 2017 for $1.125 million.
She also owns a unit in Alexandra Headland and a house in Minyama, which she bought with her former husband Grant Kenny.
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