The month in review: Sunshine Coast
By Herron Todd White
December, 2009
Well, what a roller coaster of a year. We have had ups, and
we have had downs. To say the market has been volatile
and patchy would be an understatement. Looking back,
were the predictions that we made in February right or
wrong?
The big winner of the year has certainly been the first
home buyer market. This sector has certainly been the
main driving force throughout the property industry
on the Sunshine Coast. Volumes have been high on the
back of increased demand underpinned by the various
stimulus packages. As these stimulus packages are
winding down, and credit continues to tighten, we have
certainly seen a drop-off in demand in this sector, with
investors beginning to return.
The prestige property/investment units were predicted
to have the rockiest road. This certainly was the case,
as we saw values softened significantly. In some areas
on the Sunshine Coast the reduction in values from the
peaks of 2007 had been in the vicinity of 20%. Over the
past month in the Central Sunshine Coast area there
has been an increased level of activity for properties in
the $1 million vicinity. This has come on the back of the
increased level of confidence that is being reported in the
media. The sustainability of this ‘run’ is anyone’s guess, but
it should continue well into 2010.
We also predicted in January that one of the major
impacts on the property sector will be unemployment.
Fortunately, this has not had as big an impact, so far.
As we move forward into 2010, unemployment, which
is a lag indicator of the economic climate, is predicted
to increase, and unfortunately the Sunshine Coast has
a higher than average share of unemployment. This,
and further interest rate increases are likely to have a
dampening effect on property.
We’ve seen a number of road infrastructures projects
come to completion. These projects certainly have
improved accesses to various locations on the Coast.
One of the bugbears that continue to hound the region
was the postponement of the Sunshine Coast University
Hospital. Given the coast’s predicted growth rate
and ageing population, we consider that an early the
commencement of the hospital is critical for the future of
the Sunshine Coast.
All in all, 2009 has been a tough year. There have been
reports of increasing levels of confidence, which can
only bode well for the future. This confidence is however
tempered by the increasing interest rates and the
potential increasing unemployment rates. As our Prime
Minister has said on numerous occasions ‘we are not out
of the woods yet ‘.
2010 should be a better year for property, though the high
price base the coast already has will make spectacular
price growth unlikely.
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