The Sunshine Coast property market finished 2017 on a strong note, with good levels of activity and increases in values experienced across the coast in most sectors. Once again and much like 2016, the past 12 months have exceeded expectations with growth in values across the board. Capital growth in the residential property market on the Sunshine Coast is expected to continue. However we’re expecting it to ease over the coming year.
Dwelling sales within the coastal corridor between Maroochydore and Caloundra, particularly the sub $700,000 price range, are expected to continue with increased demand as a result of the growth in infrastructure around the Sunshine Coast University Hospital. Stock levels continue to remain very low.
Stocklands’ Aura development located to the south of Caloundra and the Harmony Estate at Palmview are continuing to generate strong interest from both owner-occupiers and investors. These developments will provide the Sunshine Coast with large-scale residential land subdivisions within relatively close proximity of the new hospital and the centres of Caloundra and Maroochydore. Earthworks continue at Oceanside, which is the only significant undeveloped greenfield site remaining between Maroochydore and Caloundra. Once completed, this development will comprise a mix of single unit dwellings, medium density residential units as well as a retail and restaurant precinct.
The majority of residential development particularly in the new larger estates is primarily targeted towards the entry-level market with residential lots getting smaller to improve affordability. 2017 has continued to see the emergence of dual key dwellings comprising of an attached 1- or 2-bedroom unit targeted at investors. However, this type of product has seen the impact of APRA’s policy changes to investor lending. These changes have effectively limited the number of interest only investor loans. This is probably the area of concern for 2018 as there are early signs of over supply of investor product and an easing in rents in some areas. The resale market for this type of product is still relatively untested through local agents with the majority of these properties constructed by interstate investors.
The northern coastal areas of the Sunshine Coast and the prestige market in the Noosa area are expected to continue to see some growth throughout 2018. The strong markets and confidence of Sydney, Melbourne and more locally, Brisbane, are having a positive impact in the area. This is due to the perceived bang for your buck here compared to the capital cities. The lack of vacant land and new subdivisions in the Noosa region is also helping to underpin values in these areas.
Units lagged behind the housing market through most of 2017, however, agents have been reporting good levels of interest in units, particularly owner-occupied units within smaller complexes with low body corporates. This swing to permanent unit living has been reflected in the number of new unit complexes under construction or proposed that directly target this market.
The lifestyle and rural residential market has also improved with upgraders being active in the area. The railway townships have also improved with affordability being the key and also lot sizes being greater. Overall, 2018 is expected to continue in much the same way as 2017 finished and it is predicted to be another good year for the residential property market on the Sunshine Coast. Will it be as good as the past 12 months? We will have to wait and see.
Information supplied by Herron Todd White