State’s economy sparkles with property jewel
Flurry of buyer activity pushes median house price rise of 5.7 per cent on Sunshine Coast, boosting Queensland’s coffers
THE Sunshine Coast property market has been the jewel in the crown for Queensland’s economy, adding 5.7 per cent to the median house price in the year to March 2018.
The Gold Coast is the other part of this engine, driving strong median house price growth at a similar rate.
Real Estate Institute of Queensland CEO Antonia Mercorella said the end of financial year hadn’t delivered the flurry of first-home buyers that many areas were expecting as the State Government’s First Home Owner Grant boost ended and it reverted to the standard $15,000.
However, many areas within the Sunshine Coast region have experienced an extensive rush of activity, driving stunning price growth levels.
Minyama, Dicky Beach and Battery Hill were the top three suburbs for growth, delivering 43.9 per cent, 27. 4 per cent and 20.3 per cent growth over 12 months to March 2018.
“These areas are clearly meeting buyer expectations with a mix of river and ocean views to choose from,’’ Ms Mercorella said.
“It’s been a big year for Minyama as it became the first Sunshine Coast local government area suburb to join the million-dollar club, with a median house price of $1.275 million.
It joins Noosa’s million-dollar suburb of Sunshine Beach and these two will probably be joined by Noosaville in the next quarterly report, with its annual median house price of $948,500.
Herron Todd White Sunshine Coast director Stuart Greensill said that from high-end housing to affordable units, the residential property market was still performing quite well across the different property types.
“The first six months of 2018 saw a slight fall in the volume of sales compared to this time last year,’’ he said, “but the main reason for this has been the limited stock available.
“Properties and areas that have good market appeal are still performing well.’’
Mr Greensill said of the various residential property types, existing dwellings and vacant land were still outperforming the residential unit market.
“The lower end of both are in demand, particularly the sub $600,000 market.
“Property along the coastal strip from Caloundra to Noosa Heads as always is in demand and well-positioned, good quality rural residential properties in hinterland localities are also generating good interest.”
The market for property on the Sunshine Coast is still being heavily influenced by the interstate migration from the southern states, Mr Greensill said, as well as Brisbane buyers relocating north.
The southern end of the region has two substantial small-lot affordable housing estates – Aura at Caloundra and Harmony at Palmview – that comprise predominantly sub $600,000 single unit dwellings.
“Land continues to sell prior to titles being issued in most cases; however, we have also begun to see a decline in investor activity with the tightening of credit and investor loans by the banks really taking effect.
“Land is still selling well at Bli Bli and Peregian Springs although the supply of vacant land in new estates generally decreases north of the Maroochy River with limited sites available.
The improvement in the prestige and higher end properties has historically been driven by a high percentage of interstate investors from Sydney and Melbourne as well as expats from overseas.
This is especially the case in the Noosa region.
“The relative affordability when comparing Sydney and Melbourne prices to those of the Sunshine Coast demonstrates pretty good value,” he said.
“It also appears that the Sunshine Coast is fairly high on a number of the lists of the baby boomers who have started to retire.
“The next large infrastructure projects likely to give the coast another boost are the continued development within the much anticipated Maroochydore CBD as well as the Sunshine Coast Airport expansion.
“Works to the Bruce Highway are also well under way which will provide a much needed improvement to traffic flow once completed.
“The next big game-changer is the Sunshine Coast International Broadband Submarine Cable project which is still to be announced. This project has the potential to make the coast into a major tech hub.
“We are expecting the Sunshine Coast residential property market to simmer along in much the same fashion as the first half of 2018 with values being good.
“Net migration from the southern states is expected to continue now it appears that the southern markets are cooling and people are selling up and moving north for lifestyle.”
Aerial photograph of the Sunshine Coast. Mooloolaba Beach. Brisbane Road. Mooloolaba Spit. Mooloolaba Esplanade. Mooloolah River. Parkyn parade.