Property Business Blog

Hinter Wonderland

Many people that relocate to the Sunshine Coast are not looking for a Sea change but a Green change.

The hinterland of the Sunshine Coast features the spectacular Glasshouse Mountains, a series of steep-sided volcanic plugs. Many towns both small (you won’t find any traffic lights here) and large are dotted around the foothills of these natural wonders. 

Known as the ‘railway towns’ most locations are still within a 30 minute drive the beach.  Families and those looking to escape the ‘hustle and bustle’ of the tourist strip love the community feel, rolling green pastures and lush rainforest pockets that are the norm in these neighbourhoods. Along with the obvious drawcard of being in close proximity to the Brisbane rail line, and with prices on the staples of life increasing, many people want to become more self sufficient with water, electricity and food (even if only in a small way).

You can certainly buy more for your money, with hinterland properties offering larger allotment sizes ie 800m2 as your average size block.  There are still properties in the low $300’s price point for first home buyers, with the median sale price as at December 2010 ranging from $390,000 in Beerwah to $449,000 in Cooran.  Larger properties of 2 acres plus start around the $500,000 mark.

Capital Growth in the hinterland as shown in the REIQ data for the year 2010 saw all but two towns post a rise of between 0.4 and 13% over the past 12 months. 

Woombye, a very picturesque town between Palmwoods and Nambour, recorded a notable increase of 12.1%. This hamlet offers mostly workers cottages in the township with smaller acreages in the outlying areas.  The median price 2010 was $425,000.

Doonan with its proximity to Noosa, Peregian, Coolum and Sunshine Beach, plus the easy access to the Sunshine Coast Motorway and Bruce Highway increased 13%.  Doonan offers acreage properties, some with fantastic coastal views. A wide variety of homes are on offer; low-set older brick homes through to ultra modern eco-friendly, architecturally up-to-date designer homes. The median price 2010 was $712,000.

Market Update

The first week of March showed renewed enthusiasm in the local market.  Many agencies reported that rental inquires had doubled and numbers through ‘Open for Inspections’ had increased significantly.  One Buderim agent reported 15 properties settled for the year to date, for a sales total of over $7,000,000. Auction results confirm that homes in the under $450,000 price range are consistently achieving positive results as first home buyers and investors alike respond to the RBA’s decision to stall interest rates and strong rental increases on existing dwellings due to the decrease in home loan applications and building approvals.

When discussing property, a ‘Top Buy’ can mean different things to different people. 

1. buying  a cheap property
2. affording property in a blue chip location
3. having a plentiful selection of properties, and the time to investigate and compare these properties, knowing you have purchased the best one for your requirements

The good news is all three scenarios are presently a reality in the Sunshine Coast property market.

If you have been waiting for the’ bottom’ of the property market cycle, my belief is WE ARE THERE.

Over the past 2 weeks we have seen a number of sold stickers on sign boards along with agent’s reports on increased activity.  This is ‘on the ground’ and ‘up to date’ evidence - not hard data (that is lapsed 3 months due to collation.)

Still, I do not foresee the prices and number of sales climbing to the ‘boom time’ figures for at least another two years.

People have a perception that because of doom and gloom reports on the current property market, now is not the time to buy.

 In reality NOW is the time of maximum financial return. 

Looking at four of the most popular suburbs on the coast, recent REIQ figures show why it is a buyers’ market. 

Median house prices between June 2010 and June 2011;

Mooloolaba,      -16.7% $615,000 to $512,500

Buderim,             -5%       $535,000 to $508,000

Minyama,            -25.4%  $945,000 to $705,500

Buddina,              -12.6% $605,000 to $528,500

This is an opportunity to purchase in the best locations at discounted (adjusted) prices of up to 25.4%, - now that’s TOP BUYING.