Property Business Blog

How will mining effect Sunshine Coast property?  Even though there are no mines on the Sunshine Coast the boom of the last two years is starting to shape our future.  My belief is that this year, 2012 and leading into 2013, the ripple effect from mining money will start to form the rebound of the local property market. A large percentage of mine workers are now in their second year of employment.  Their first year’s wages were spent on living it up – holidays, cars and the finer things in life.  Now when looking at their second year tax refund (or lack thereof $) and how much they are giving to the government, reality is dawning that perhaps they should be investing. 

With the recent Dysart mine shutting down and effectively cutting off the one income source of the town, people are wary of investing in ‘high risk/high priced’ property mining towns.  Whereas once the Sunshine Coast relied mainly on tourism, retail and construction industries, now we are diversifying into Health and allied services and piggybacking the green change/sea change/lifestyle movement taking place in society.

Many miners and their families want a lifestyle in a safe and family orientated community and the Sunshine Coast fits that checklist.  Local agents report increased enquiry from miners posted in Port Headland to the (relatively local) Emerald in Queensland.

Investing in Sunshine Coast property is not a get rich quick scheme, it is a long term (minimum 5 year) growth plan for future equity growth. Contact us to find out the facts.

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.

This is what Buderim locals have always known.

The area is one of the few suburbs on the Sunshine Coast that has maintained an increase in capital growth for the past 15 years, only showing a decline in 2011.

In analysing the statistical data; of the 260 houses sold in 2011 (>Sept) the majority were within the $350-$650,000 price range, with only 25 sold over $800,000.

Rental returns have remained consistent for the past 3 years; weekly median rental on a 4 bedroom house at $420 and a 3 bedroom townhouse $350.

The economic stability of the area is strengthened by the outstanding junior and senior educational facilities (including the University of the Sunshine Coast) all within 10 minutes of Buderim village. 

**Matthew Flinders College and Sunshine Coast Grammar lead the state in % of students obtaining OP scores between 1-5. **

Buderim’s proximity to the planned Sunshine Coast Hospitals to be constructed at Kawana will see the regions medical facilities on par with those typically found in the nation’s capital cities.  An estimated 15,000 jobs will be created over the 4 to 5 years of construction, whilst more than 150 applications have already been received from professionals from around the globe, seeking positions once the hospitals open.  When open, the private hospital will employ 700 staff and generate almost $90 million in local economic activity. With this in mind, Buderim’s unique location will undoubtedly ensure positive sales growth.

Further confidence in the local area is being demonstrated by the development of a new shopping precinct on the corner of King Street & Main Road.  The design aim is to continue the boutique shopping experience from the existing village with both pedestrian and vehicle links.

With very few opportunities left for land developments now is the time to secure your piece of Buderim.

'The Buderim Address' is the property buyers guidebook to Buderim.  Over 100 pages of full colour photos, with local information on facilities, neighbourhoods and property market reports.  Written by the leading Buderim Buyers Agent for buyers of Buderim property.  Visit www.buderimproperty.net.au to find out more.

Most Australians have heard of Noosa. 

The name conjures up thoughts of sun, surf, cafes and restaurants, all alongside the rich and famous.  It’s a place where if you won lotto you could buy that ‘getaway’ you’ve always wanted, right….

Well guess what - now you can afford to buy in Noosa!

This exclusive suburb has been hit hard by the GFC and subsequent downturn in tourism.

Unit prices have decreased by 7.85% in the past 12 months, showing the median unit price at $430,000.

A quick search of available properties shows a river view apartment with 2 bedrooms, 2 bathrooms and 1 car park in a small complex situated in Hastings Street, Noosa Heads at a list price of $425,000. 

Position is THE key criteria when selecting an investment as a holiday letting prospect. 

Holiday makers want to be close to the action. ie. walk to the beach, the shops, restaurants and clubs.  They want to park the car and leave it parked.

A great idea is to spend a few nights at the property yourself before committing to purchase.  This way you can not only check what is and isn’t working but also find out what happens after hours.  Do the bins from restaurants get emptied at 6am?  Is there late night partying that can be heard from a nearby club? 

Secondly, look at the management of the complex- if there is no on-site manager.  Select an agency that has specialist staff to service holiday bookings, with  quick response times if something is broken or ‘extras’ are requested.  I have personally stayed at a resort where the onsite managers were downright rude when extra blankets were requested.  This could ruin anyone’s holiday.

If your holiday tenants have an enjoyable time they will repeat book and tell others to request your property.

Lastly Noosa has hundreds of accommodations, all of which can be booked online.  Many buyers fail to investigate a complex’s online presence.  Check not only the website, photos and search engine capacity but most importantly ease of booking, making payments and response times to online enquiries etc.

Websites such as Trip Advisor have genuine feedback from past guests - both good and bad - concerning their experiences.

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.

If Sir Richard Branson or Clive Palmer tapped you on the shoulder with a hot investment tip, wouldn’t you listen?

Well even better, they have put their money where their mouths are. 

Both have invested in the Sunshine Coast.

Dubbed Richard Branson’s Australian home, Makepeace Island was purchased in 2003 for a modest $2.86 million and has been transformed into an $8000 per night luxury getaway.

Branson is keen to help reinvigorate tourism on the Sunshine Coast along with Palmer.

In July, Clive Palmer purchased the Hyatt Coolum with plans to return the resort to its former glory plus more.

The richest man in Queensland’s obvious confidence in the region certainly is a positive sign.

Tourism will also benefit from the $500 million dollar airport masterplan in progress.  The planning of a second runway will open up possibilities of further domestic and Trans ’Tasman international destinations.

Recognising the need to diversify our economic base the Sunshine Coast Council is thinking within and outside the square to secure our future.  We are certainly not in the ‘high flying’ days prior to the GFC but we do have plans and the budgets agreed to fulfil those plans.

The big ticket items listed below shows significant investment to drive real jobs growth and the development of our urban centres.

• The Maroochydore CBD redevelopment of Horton Park golf course-  53 hectares
• Caloundra South development – housing 17,000 over the next 15 years
• Kawana Town centre-5,000 residents
• University Hospital –Kawana $2 billion +
• $189 million allocated for capital works by Sunshine Coast council

Now is the time to invest in the Sunshine Coast, property prices are keen, interest rates are reasonable and our future is going forward.

What was previously an area utilised by fishing fanatics and family orientated holiday makers is now being complimented with speciality shops, cafes’ and top class restaurants. 

Cotton Tree Park offers an unmatched pedestrian environment, stretching the length of the riverside promenade.

Future plans will see Sixth Avenue become the ‘main street’ of Cotton Tree; a promenade with streetscaping and new developments of mixed use buildings. 

Current property market conditions are seeing investors liquidating their holiday units; this ‘buyer favourable’ environment means that owner occupiers are reaping the rewards. 

Units are becoming more popular, not only for affordability but also because of the easier maintenance, security conscious environments, less cost if renovations are needed and are closer to city centres, facilities and public transport.

Due to the underperforming holiday accommodation market, investors should look at properties for permanent rentals.  Again, because of Cotton Trees location to the CBD and lifestyles surrounds, rental returns in Cotton Tree are above average for the Sunshine Coast.

Suiting any budget, units in Cotton Tree vary from  low $300,000’s in older complex’s, to mid $500,000’s for a modern ocean view apartment, then to $1,000,000+ for penthouse living in a new development with uninterrupted 360 degrees ocean and river views.

We are seeing sale prices below what sellers paid when purchased off the plan 3 years ago and incentives of furniture packages included or pre-payment of body corporate levies as sweeteners to Buyers – this proves now is the time to negotiate hard.

Capital growth statistics for Cotton Tree are incorporated in Maroochydore data.  The median price for units in 2001 was $164,362 in 2011 the figure was $494,125.  This again proves ‘time is your friend’ with educated property purchases.

For more information please contact our office at…………Cotton Tree.

Kawana Island (officially known as Parrearra, postcode 4575) is located in the middle of the Sunshine Coast.  An inland island (a 10 minute walk from the coastline) developed in early 2000 to create one of the first master planned communities of the region.

Neighbourhoods are connected by kilometres of walking tracks throughout canal systems, with BBQ facilities, play equipment and free fitness stations at a number of local parks.  Serious boaties can utilise the Loch with deep water anchorage at a number of waterfront properties.

Central to all is the ‘beach’ of Double Bay, where locals can enjoy the café delicatessen or al a carte dinning of Montego’s on the Bay. 

Kawana Island is popular with families, retirees and professionals with the community spirit noticeable in the house proud streets. The area offers a variety of residences; from water front mansions to family homes, apartments, villas, retirement villages and cottages, with price points for every budget.

The house capital growth chart confirms consistent growth since the first sales.

A recent search of rental properties in the area shows only 5 houses available eg.4 bedroom, 2 bathroom double lock up garage from $450-$600 per week.

What does the future hold? 

The last stages of the development are in progress; Birtinya Island offers house and land packages starting in the mid $500,000 and apartments from $400,000. 

Edgewater commercial centre is currently leasing with the national insurance company YOUI as the anchor tenant.

Future planning includes the Sunshine Coast University Hospital, rail and bus interchange and a town centre at the nearby Brightwater development.

Supporting infrastructure is already in place with access via Kawana Way linking the area to the Sunshine Motorway and the Sunshine Coast University.

If you are a low risk investor, this area definitely rates further investigation!

Contact us to discuss your next step.

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”.

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.