Property Business Blog

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