Unit prices ex­pected to lift

Sunshine Coast Daily - - SOLD ON - SUNI GOLIGHTLY

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.”

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