2017 Year in Review

The Sunshine Coast property market in 2017 has continued on from where 2016 left off and we have seen a another strong year across the coast in general with Coolum Beach and our neighboring suburbs being in high demand.

We have also seen good growth in both the permanent and holiday rental market. Many people are opting to rent for six to twelve months before purchasing. Coolum Beach is growing in popularity as a holiday destination with the periods between school holidays now being quite active.

Compounding the effect of the strong buyer demand is the current shortage of quality stock available, resulting in a competitive buying market . This should provide the opportunity for further growth or make local property quite resilient to any negative market factors that may be ahead of us. However, as we have seen previously, our local market is impacted by what happens at a national and even global level.

The strength of our market lays in the desirability of Coolum as a place to live providing a country town feel on the coast with lots of green space and good amenities. We are finding increasing numbers of retirees and working families relocating to the area to take advantage of the lower prices and the seachange lifestyle. This has resulted in a range of buyers from young families to retirees wanting to live here and enjoy the unique lifestyle we have on offer.

Another factor affecting the market in 2017 was the changes to investment lending, which did put the brakes on the investor market who were attracted to the area.

While ocean views have always been high on many buyers priority list, we are finding an increasing number of buyers having a strong focus on location, usually wanting to be walking distance to the beach and cafes to provide the holiday lifestyle where the car can be left in the garage and they can simply walk to the beach or walk home after dinner. These increased prices have been pushing buyers to the hinterland areas and towns to find better value.

There has been strong interest for entry level freestanding homes which has flowed onto the unit market resulting in strong competition. While the smaller complexes close to amenities with low body corporate fees have been in high demand we have also seen increased sales prices and volume for the resort style apartments which are still representing good value.

The good news is that buyers have also been active right through to the mid range homes ($700 000 – $1 000 000) and the million dollar plus properties experiencing a general reduction in average days on market and quite often multiple offers. The prestige residential market has continued to strengthen. This market is closely related to the southern markets of Sydney, Melbourne and Brisbane. Buyers in this segment are certainly purchasing for a position or lifestyle choice and in quite a number of cases for future retirement and principal place of residence.

With the hospital finally opening and a number of good long term projects such as the Sunshine Coast
Airport Runway extension and Sun Central (New Maroochydore CBD), there are exciting times ahead. It will be even more interesting to see how 2018 unfolds.

Source Herron Todd White Month In Review Dec 2017