Sunshine Coast

The Smartline Report – September Edition

The month in review: Sunshine Coast

By Herron Todd White
September 2015

The unit market on the Sunshine Coast remains patchy. To give some background it peaked in late 2007 and early 2008 with the median unit price reaching circa $370,000 in 2008 and the volume of sales reaching 4,465 for 2007 and 3,337 for 2008. After this, sales halved to their lowest point in 2012 at 2,290 sales and a median unit price low of $345,000.

Sunshine-Coast-sep2015

Slowly sellers became more accepting of the repriced unit market and there was an increase in volumes to 4,079 in 2014. Unlike houses, the unit values have increased but far more slowly with a median unit price in 2014 of $352,000. In 2015 we are on track for sales volumes and median prices to better 2014. Most of the activity is below $500,000 which accounts for 77% of the sales.

There has been a small improvement in yield to residential unit investors with rents progressively increasing over the past three years. Over this period, the median house price has cumulatively risen by 15% while the median house rent has correspondingly risen by 14%. However for units, the median rent has risen by 11.5% over the period from June 2012 to June 2015, while the median price has risen 6%.

Sales volumes in the unit market continue to be very much location and property specific. The main impediment in the unit market is high body corporate fees, especially in the investment unit market. Eroding modest occupancy increases with discounting is usually required to effect a sale. Units in smaller, near to beach complexes suited to owner occupier or permanent rental have seen increased demand and some value increases. We have also seen a move to larger, permanent occupancy style units as a people look to downsize from a house.

Over the past 12 months we have seen a number of new projects for both unit and townhouses being marketed with construction commenced. This is good sign as buyers who have previously been capital city focused have been looking further afield especially given the new University Hospital. There is no doubt that there is a premium being paid for these properties which should be expected given that they are new. Some are marketed with various schemes such as NRAS to help sales. The hope is that the unit market will keep trending how it is with steady value growth so that the values being paid can be supported.

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Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2015. Australian Credit Licence Number 385325

 

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