Maligned Pimpama a suburb on the up
A PARTICULAR suburb has started to crop up in property data sets of late that you don’t see too often.
No, it’s not Burleigh Heads, or Mermaid Beach, or Currumbin (although they do continue to dominate the news for just about everything from stellar house-price growth to where the latest celebrity was spotted).
The suburb in question does appear in the news, but it’s usually for all the wrong reasons.
If you haven’t guessed, I’m talking about Pimpama, 30 minutes’ drive northwest of the Gold Coast, a place to which most locals have probably never been (and possibly hope they never will).
And yet, the suburb has made an appearance in Well Home Loans’ Green Shoots Report of suburbs to watch in Queensland in 2022.
Pimpama came in a respectable ninth on a list of 20 locations in the report, which identifies areas showing the clearest signs that strong price growth is just around the corner.
It is based on decreasing inventory levels (Pimpama’s has dropped 45.6 per cent) and days on market (down 14 per cent), and rising median asking prices (up two per cent) for the October quarter.
Well Home Loans CEO Scott Spencer said when inventory levels and days on market were falling, it meant buying conditions were becoming harder, suggesting prices in the suburb were likely to rise for months, even years, ahead.
According to local estate agent Shane Perry of LJ Hooker Solutions, Pimpama has already started to change.
“The problem with Pimpama, historically, is that was predominantly made up of investment properties. In 2020, 73 per cent of homes were rentals, but owner-occupiers have started moving in and now account for 40 per cent of households.
“Years ago spruikers sold land and house packages to a stack of investors from interstate, making claims that their properties would be worth $550,000 and bring them big rental returns. It was a lie.
“Those who sold early lost out, with Covid now giving those who didn’t a golden ticket because prices in the past 12 months have risen incredibly.
“Last year I was selling homes for $420,000 to $450,000. Now entry-level homes go for $500,000 to $600,000.”
According to REA, the median house price in Pimpama is $519,000, up 15.9 per cent from $458,750 at the same time last year.
Mr Perry said: “We used to struggle to get anyone to an open home, now we have 20 to 30 groups through. I don’t think it will stop any time soon.
“There are so many people wanting to move to Queensland. They can’t all afford or find somewhere to live along the coast, so they have to go somewhere,” he said.
“Because Pimpama is still relatively affordable there are a lot of first-home buyers coming here, attracted by the shiny new houses.”
The establishment of the Gainsborough Green masterplanned community has also helped to attract buyers to the suburb, which in turn brings infrastructure and retailers such as Bunnings and, potentially, US retail giant Costco.
Pimpama is also set to gain a rail station as part of the Cross Rail expansion.
I’m not saying that access to a Bunnings sausage sizzle is enough to make someone up sticks and head west, but, slowly, things appear to be changing in Pimpama, and if the Well Homes report predictions prove correct, it may be worth long-term investors and those wanting to get a foot on the property ladder taking a closer look.