The month in review: Sunshine Coast
By Herron Todd White
July, 2010
‘Where would you spend $500,000?’ is a question that
most property valuers will experience in both professional
and social environments. This is even more the case when
we are being told by the media and government that ‘the
worst of the GFC is behind us’. This may be the situation in
capital cities and the mining towns, but this is far from the
case on the Sunshine Coast.
‘Location Location Location’ is the old maxim that has
been used over many years. It still continues to be one
on the main necessities when purchasing a property that
provides both growth and lifestyle potential. The coastal
strip between the coastal highway and the surfing
beaches remains an area that needs to be viewed closely.
It is the underlying land component that provides the
potential for capital growth, and with the added bonus
of being able to ‘value add’ to the existing improvements
being a real positive. We do note there has been a shift
away from coastal areas into more modern estates
located further from the beaches with purchasers making
an ‘opportunity cost’ decision to live in newer dwellings.
Areas near educational facilities also continue to be
popular amongst purchasers’
The above is an excerpt from last year’s Month in Review.
These factors are still prevalent in today’s marketplace.
Whilst we haven’t seen any significant levels of growth in
the past 12 months, the high underlying land component
is still a good building block for future capital growth.
As with last year, the unit market continues to remain
subdued, with substantial levels of stock available. As with
housing, units that are close to beaches and amenities
continue to be the main factor to look for. This combined
with a well managed complex that gives some good
rental returns is a bonus. As noted in previous month in
reviews, there is a real ability to purchase both units and
housing at below replacement cost at present.
As there is an expectation that property values will remain
relatively static over the coming years, a greater reliance is being placed on rental returns. Therefore multi-tenanted
properties such as flats have become a good investment
alternative.
Over the next six months there will be some good
opportunities. Interest rate increases have certainly
had the desired effect on the marketplace, with various
agents, indicating a significant slowdown in enquiry. This
combined with the uncertainty caused by a looming
federal election, may lead to some pressure in certain
sectors.
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