Property Business Blog

Since the commencement of 2012 it’s not just the sun shining on the Sunshine Coast.

Throughout the coast there is a new optimism.  It started with the holiday crowds over the Christmas period, smiling happy people were everywhere enjoying beaches, cafes, shops and parks.  Accommodation from caravan parks to resorts hung the ‘no vacancy’ shingles out.

This confidence has filtered through to the property market, open for inspections were well attended, selling agents reported increased enquiries and contracts of sale were being signed.

The most outstanding result recorded being from an agent selling top end waterfront mansions - $10 million in sales in 2012.

A number of projects have commenced on the coast and cranes can be seen on the skyline around town; Edgewater on Regatta Lake at Birtinya is well underway with the roof going on today (14^th February). The first stage of ground works for the private hospital at Kawana has begun. Sea Pearl in Mooloolaba, a $70 million residential development has over 60% of the 23 luxury skyhomes sold – with prices starting at a very reasonable $1.49 million and an average price of $2.5 million. The new Maroochydore Transit centre is taking shape. A drive down Maroochy Boulevard will prove the extent of construction work under way. Emporio, the Harvey Norman superstore, Sunshine Cove, and Sunshine Coast Mazda (joining Lexus and Mercedes Benz) are either completed or under construction.

Projects that have been in the planning process for years are pegged to start this year; The Sippy Downs Town Centre – this $100 million development includes residential, commercial, retail and an upgrade of the surrounding roads and motorways.  The planning minister Mr Lucas said the project is set to bring 900 on-going jobs and 600 construction jobs.

To add even more lustre, the Sunshine Coast Council and Regional Development Australia are working to attract fly-in fly-out miners to stay long term, and short term on the Sunshine Coast adding significant economic opportunity for the region.

With all the plans for investment and infrastructure what can we expect in the property market?

The most common question we field is “When is the bottom of the market?”

We are likely to experience the bottom in 2012, with still so much stock on the market – both new and existing properties, there may be an increasing number of sales but values will not improve, meaning the best time to buy.

Contact us on anything to do with property on the Sunshine Coast.

Perfect Storm; the phrase has grown to mean any event where a situation is aggravated drastically by an exceptionally rare combination of circumstances. Source: Wikipedia

The ‘situation’ - a slowing property market

The ‘rare combination of circumstances’ –

1. Economy recovering from Global Financial Crisis
2. Steady interest rates
3. The weather events of early 2011

‘Perfect’ is the time to buy = NOW

Local Sunshine Coast agents report increased sales volumes but with the underlying theme of buyers only committing if they believe they are getting a bargain. 

On the back of recent sales at reduced prices, many Vendors, particularly those with extended periods of time already on the market, have had to re-price their properties to gain Buyers interest.

There is now the opportunity to capitalise in traditionally tightly held areas such as Cotton Tree, Alexandra Headland, Sunshine Beach, Kings Beach, Noosa Heads and Buddina at far more affordable prices. 

Over the long term the coastal strip properties are the best capital growth performers. 

Yes - at present they are below their peak but above values of 5 years ago.

                                                                                                         Data Source: Property Data Solutions Pty Ltd 2011

In the current climate a house or permanent let unit would be the wise choice as an income earner, as opposed to holiday let resort style units (Tourism and therefore occupancy rates are currently well down).

How long will this last? 

According to Dr Wilson, senior economist for Australian Property Monitors, the Queensland floods will impact on the market.  “The shortage of rental properties in Brisbane, particularly houses will put upward pressure on property prices, not only in Brisbane but the Gold and Sunshine Coasts, which are in commuting distance”.

Most people don’t even know where Buddina is located on the Sunshine Coast, but this small hidden suburb was one of the Top Performers for median house prices, recording 24.3% capital growth for 2010.

Better known Kawana and Mooloolaba border this seaside village.

Nestled between the Pacific Ocean and the Minyama Canals, it is one of the few places where a 30 year old beach shack is quite in place next to a multi-million dollar mansion.  The local community is well serviced by the Kawana Surf Club, State School, Library and Community Hall, kilometres of cycle and walking tracks, picnic and sporting areas and the 2^nd largest shopping centre on the Sunshine Coast.

Speaking as a local myself, the attraction of Buddina is that most conveniences are within walking distance or a short drive away.

The majority of the properties throughout Buddina are predominantly freestanding houses with a few scattered unit complex’s and duplex pairs.  They are tightly held, with  new listings being sold well under the average  “days on the market”, for the Sunshine Coast.

The median house price – November 2010- is $588,500, median unit price $500,000.  Recent sales range from a 2 bedroom renovated duplex 30 metres from the beach for $390,000 up to $613,000 for a 4 bedroom renovated brick home 50 metres from the beach.

Other performers were Mooloolaba 14%, Moffat Beach 12.8% and Maleny 12.9%.  The Sunshine Coast increase in median price was 6% for homes and 13.6% for units for the year ending September 2010.

The Top 3 Performers for median unit prices were; Caloundra 20%, Mt Coolum 15% and Nambour 14.5%.  The median unit prices for these areas ranged from the very affordable Nambour at $285000 to waterfront Caloundra units at $450000.

With agents reporting an increase in the average days on the market in most areas, buyers have a varied choice of homes for sale.

We have seen firsthand the strain that a poorly researched real estate decision can have on a family. Alarmed at the lack of unbiased information available on the internet, we have compiled this online resource to ensure that investors are properly informed.  Please visit our new website www.propertysunshinecoast.net.au