Market Update – From Herron, Todd and White

The residential property market is 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 but the main reason for this has been the limited stock available. General buyer activity has been good but some agents over recent weeks have begun to notice that enquiry levels have slowed with some urgency disappearing from the market. Whether this is just a seasonal impact or something more sinister is too  early to tell. Properties and areas that have good market appeal are still performing well. Of the various residential property types, existing dwellings and vacant land are 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 as well as Brisbane buyers relocating north. There continues to be 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.

The improvement in the prestige and higher end properties has historically been driven by a high percentage of interstate investors from Sydney and Melbourne. 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. It also appears that the Sunshine Coast is pretty 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 underway 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 reasons. It appears the market may be in the early stages of transitioning after several years of strong growth across all residential property markets.

 

Herron Todd and White – Sunshine Coast

T 07 5444 7277
Suite 305, Tower 2, Level 3, Kon – Tiki Business Centre, 55 Plaza Parade, Maroochydore, QLD, 4558
PO Box 224, Mooloolaba, QLD, 4557
Australia