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
Why Noosa is now the strongest property market in Queensland
Noosa is on track to take out the title of Queensland’s best performing property market for 2018, as new figures reveal it has delivered the strongest growth in the state over the past 12 months.
Noosa’s growth eclipsed that of both the Gold Coast and Brisbane, according to data from the Real Estate Institute of Queensland, making it Queensland’s most prestigious property market.
But in the 12 months leading up to June, demand in the area reached new heights – the median house price grew 6.9 per cent to $695,000 and units by an impressive 10.2 per cent to $540,000.
It has been a heady year for the Noosa region – earlier this year a $22 million Sunshine Beach trophy home made headlines when it set a new record for the Sunshine Coast.
By rights, as one the biggest real estate deals in Queensland in recent years, the house at 21-23 Webb Road — a seven-bedroom, eight- bathroom beachfront estate — should have been a jaw-dropping, albeit rare, headline-stealer.
But Noosa was already up in lights. Less than two weeks earlier, Pat Rafter’s $18 million beachfront mansion had gone under contract.
REIQ chief executive Antonia Mercorella said Noosa had all the ingredients for price growth.
“This is a highly desirable part of the world, with stunning natural features, world-class beaches, beautiful climate year-round, outstanding shopping and dining precincts, and, crucially, exclusivity,” she said.
“There is limited housing supply being added to Noosa and competition is obviously driving price growth.
“Looking forward, once the Bruce Highway upgrades are completed and commuting to Brisbane becomes more feasible, it’s likely we’ll see added demand for Sunshine Coast living.
“This area would benefit from greater supply levels, undoubtedly.”
Instead, he said, the region’s infrastructure boom was driving a shift in demographic of Sunshine Coast buyers.
“Billions of dollars have been invested, including transport, tourism and medical sector … the stimulus for growth on the back of these projects is reshaping the traditional buyer profiles,” he said.
The house was snapped up by a mystery buyer in a deal worth more than $10 million and Mr Reed said the momentum of the market had shown no signs of slowing down since then.
“I’ve just listed another incredible Noosa North Shore property at 2 Frying Pan Track and the interest has been very positive with buyers from interstate and internationally,” he said.
“Access to international travel and upgrades to digital infrastructure is enabling younger wealthy industry leaders and expats to buy in Noosa with confidence.
“This has already had a positive knock on effect to the luxury property market in Noosa.
“When you couple this with traditional upward pressure from baby boomers capitalised from southern markets making a lifestyle transition, it’s creating great selling conditions for Spring.”
The rest of the Sunshine Coast region delivered similarly strong results for the year to June 2018.
Overall, the Sunshine Coast local government area grew 6.5 per cent to a median house price of $575,000.
Previous frontrunner the Gold Coast continued its trajectory of strong growth, with the median house price increasing 4.5 per cent to $622,031.
“This is not a completely unexpected result in the post-Games period as we see normal activity resume,” Ms Mercorella said.
The Gold Coast is the biggest apartment market in Queensland, selling more than 10,000 units in the 12 months to June 2018.
It was also one of the few unit markets in Queensland to deliver positive growth, adding a slender 0.9 per cent to values to a median of $429,000.
The Coast area where it’s almost impossible to get a rental
THE Caloundra coastal area is the tightest rental market in Queensland, latest data has revealed.
The Caloundra coast shared the mantle with Gympie for the tightest vacancy rates across Queensland in March, with just 0.5 per cent of rental properties vacant in both areas.
Noosa was the third tightest market in Queensland, with 0.8 per cent vacancy.
The Sunshine Coast hinterland was the easiest place in the region to find a rental property, with 2.2 per cent of rental properties available.
But the figures reflected a slight easing from the Sunshine Coast’s strangled rental market conditions at the end of December, when both Caloundra and Maroochydore sat at 0.4 per cent vacancy.
While the figures are bad news for those trying to secure a lease, Real Estate Industry Queensland CEO Antonia Mercorella said the results were positive for investors after several years of “bleak” market conditions.
Ms Mercorella said the Australian Prudential Regulation Authority should ease restrictions on lending to allow more property investment and increase the number of rental properties available.
“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,” she said.
Data from SQM Research up to April 20 revealed rental prices had jumped since the end of last year, with rents for homes up 3.2 per cent and units up 3.7 per cent.
Larger homes in particular have seen significant price growth, with rent prices for three bedroom houses increased 12.3 per cent since April 20, 2015.
QUEENSLAND’S TIGHTEST MARKETS
Sunshine Coast: 1%
Gold Coast: 1.1%
10 QLD suburbs that smashed records in 2017/18
THEY are the state’s high achievers.
The suburbs that have outperformed their peers in the residential property stakes; breaking records for sale price, number of sales, days on market or for smashing through the million-dollar median price ceiling.
Benchmarks have been beaten in blue-chip areas like Ascot, Sunshine Beach and Surfers Paradise, as well as suburbs on the rise, including Kalinga and Underwood.
Records were smashed in at least 10 suburbs across the state in the past 12 months— an indicator of a shortage of stock and increase in demand in a number of competitive markets.
Here are some of Queensland’s benchmark busters of 2017/18:
The standout record-breaker in Brisbane was the sale of the trophy home of Domino’s Pizza boss Don Meij in Ascot.
The $11 million sale price of 27 Sutherland Avenue in March set a new record for the inner-city, blue-chip suburb.
It was also Brisbane’s highest sale of the past financial year.
Patrick McKinnon of Place Ascot, formerly of Coronis Hamilton, brokered the deal and said Mr Meij sold after receiving an off-market offer from a buyer who had fallen in love with the property.
Set on a sprawling 2024 sqm, the lavish home has six bedrooms, six marble ensuites and a jaw-dropping outdoor entertaining space with resort-style gardens, infinity-edge pool, pool house with outdoor kitchen and verandas.
The fastest selling suburb in Queensland is Brendale in the Moreton Bay region, where the median house price is still an affordable $461,000.
It takes, on average, just 11 days to find a buyer, according to CoreLogic.
According to the latest Census data only 14.5 per cent of properties in the suburb are houses. With so few houses available, demand can be strong when something new is listed.
The Sunshine Coast hinterland suburb had the highest number of houses change hands in 2017/18, with 573 houses selling in the 12 months to May, according to CoreLogic.
The owners of a majestic property at 10 Orme Rd, Buderim, that once hosted royalty have embarked on a new push to sell it.
With all the focus on the royal newlyweds of late, it’s only fitting this heritage-listed Queenslander now holds extra appeal, given it was the residence of choice for the Duke of Gloucester during a royal visit in 1934.
The grand residence on 6315 sqm was built circa 1913 on the highest point of the northern slope of Mt Buderim, overlooking the Maroochy coast and river valley.
This Gold Coast suburb made the million dollar club for the first time in 2017/18, with its median house price now $1.05 million.
The sale of a waterfront mansion at 8-10 Marseilles Court this year for $9 million also broke the suburb’s sale price record — trumping the $8 million sale achieved in 2009 for a house in the same street.
The resort-style home has five bedrooms and seven bathrooms and is on a huge, 2703 sqm riverfront block.
REIQ Gold Coast Zone chairman Andrew Henderson said the new record was not surprising given the Coast’s strong market and he was confident property values would continue to soar.
Andrew Stone and his partner, Naomi Freney, recently bought a five-bedroom house, which they renovated, in Bundall for $620,000.
Mr Stone said he considered it a bargain given how tightly-held the suburb had become and the increase in house prices.
“I think we probably hit pot luck with that place,” Mr Stone said.
“People had been saying that area was going to go up 20 years ago and all of a sudden, it’s growing and there’s not a lot of turnover anymore.”
Ben Latimer of LJ Hooker Southport said Bundall’s transformation into a record-breaking suburb had happened gradually.
“It’s desirable because it’s so close to everything and there’s a good mixture of waterfront and dry blocks,” he said.
Paul Nikolas agrees.
He’s been buying, renovating and selling homes in Bundall for the past six years.
The last house he sold there earned him a profit of around $700,000.
He’s now selling his latest project at 19 Donegal Crescent for a cool $3.995 million.
“I’ve found a niche market here — nice, older properties on the water,” Mr Nikolas said.
The inner Brisbane suburb achieved a new sale price record when a landmark house sold for $5.025 million just last month.
Designed by architect Eric Trewern, the English-inspired home known as Thongabel at 4 Welwyn Crescent captures views of the entire Brisbane City skyline.
The five-bedroom, three storey house had been renovated with architectural features including Tulip Oak timber floors, Italian tiles and travertine.
Other highlights included a library, gym, climate controlled wine cellar, formal office, heated lap pool, heated horizon spa and outdoor space for kids to play.
Just 4km from the CBD and with a number of good Catholic and private schools on offer, Coorparoo has become one of Brisbane’s most sought-after suburbs.
The median house price sits at $875,000, according to CoreLogic.
The tiny, up-and-coming suburb in Brisbane’s inner north made it into the million dollar club for the first time in 2017/18.
Its median house price broke through the $1 million barrier in late 2017 and currently sits at $1.04 million.
In November, 2017, records show the offmarket sale of a house at 119 Nelson Street for $4 million set a new price record for the suburb.
Brisbane’s bayside is a sleeping giant only held back by lack of stock, according to one of Manly’s leading agents.
The suburb set a new sale price record for both houses and units in the past financial year.
Marc Sorrentino of Place Manly recently sold a unit in the seaside suburb for a whopping $1.2 million — smashing the previous record price paid for an apartment there by $345,000.
A couple from Sydney snapped up the luxurious three-bedroom, two-bathroom pad at 301/177 Melville Terrace, which had been advertised for offers over $1.1 million.
The median unit price in Manly, just 15km from Brisbane’s CBD, is $485,000, according to property research firm CoreLogic.
Late last year, Mr Sorrentino sold a family home on a huge, waterfront block at 497 Royal Esplanade for $3.9 million — smashing the suburb record for the sale price of a house.
“I keep saying it’s Australia’s best kept secret, but you watch. The prices are just going to keep going up and up and up,” he said.
“There’s just been a lack of good stock.”
The sale of a beach house in Sunshine Beach for $18 million in March set a new price record for the entire Sunshine Coast region.
The seven-bedroom, eight-bathroom property at 21-23 Webb Road was bought by David Russell, the owner of private equity group Equis Energy.
Just streets away, former tennis star Pat Rafter’s beachfront home sold for $15.2 million to Betty’s Burger founder David Hales, within weeks of the Webb Road sale.
A whopping 1398 units were sold in the Gold Coast’s glitziest suburb in the past financial year — more than any other property type in any other suburb.
It seems only fitting then that the most expensive penthouse Queensland has ever seen is under construction in Surfers Paradise.
Priced at a whopping $41m and spread across two full floor levels, the highest home in the $1.2 billion Spirit 89 building easily tops the list of Queensland’s most expensive penthouses.
The 1899sq m sky home will also be one of the largest in the country, almost twice as large as Hong Kong billionaire Tony Fung’s $7.95 shell of a penthouse in the Soul building, and just a fifth smaller than the hyper-exclusive Boyd Residence above ANZ Tower in Sydney — which at $66m is Australia’s most expensive penthouse.
“Without the spire on Q1, it is the tallest residential building in Queensland,” agent Julian Sutherland of Ray White Projects told The Courier-Mail.
The working class suburb in Brisbane’s south experienced the highest capital growth in Queensland in the past 12 months.
The Logan suburb’s median house price climbed nearly 25 per cent to $601,345 in the past financial year.
Underwood’s median house price also jumped a massive 65.6 per cent between May 2008 and May this year — the highest growth of any Brisbane suburb in the past decade.
CoreLogic senior research analyst Cameron Kusher told The Courier-Mail it was “a bit surprising” given the suburb’s location, 17km from Brisbane’s CBD, but its affordability and access to the highway and Gold Coast made it attractive.
“But its median (house) price is now up over $600,000, so it’s not really that cheap anymore,” Mr Kusher said.
- Infrastructure8 months ago
Fast Rail from Brisbane to Sunshine Coast Could Become a Reality
- Market Place1 year ago
REVEALED: The truth behind Old Woman Island
- Market Place8 months ago
Queensland’s property flipping hotspots rise as profits roll in
- Developments8 months ago
Construction to begin today on near sold-out housing project
- Opinion8 months ago
A COLOSSAL RISK: Huge danger sign for housing in Australia
- Developments2 years ago
Aura To Build Retirement Development In Maroochydore
- Developments9 months ago
Sunshine Coast’s Newest Town Centre Approved for Development
- Opinion8 months ago
Noel Whittaker says don’t get beached by dream purchase