Sunshine Coast's stock levels remain extremely low: HTW residential

Sunshine Coast's stock levels remain extremely low: HTW residential
Sunshine Coast's stock levels remain extremely low: HTW residential

Sunshine Coast's stock levels continued to remain extremely low with no significant increase in property listings in April and May, according to the latest Herron Todd White (HTW) residential report. 

The valuation firm suggests in locations across the nation, the downtime delivered by isolation has spurned on owners looking to improve their assets through maintenance and upgrade. This month’s HTW report highlights where renovations are on the rise and the price points and outcomes those markets can expect.

The HTW report first provided an update on COVID. 

"When we try to break down the COVID-19 world and market place, the overarching theme is that we appear to be in a in a state of flux," the valuation firm said. 

Pressure on owners to sell remains limited but this may be delayed until the various support and stimulus packages come to an end (government’s Job Keeper allowance and bank mortgage holidays).

"When reviewing valuations of sales completed by our office and specifically properties contracted during April and into May, in excess of 95 per cent of the sales show a discount of five per cent or less from the list price," the valuation firm said. 

Also, 98 per cent of the sales occurred within 90 days. As previously stated, it remains extremely important to understand the circumstances of any sales that transact in this period.

"As COVID-19 infection rate results improve and the restrictions start to ease, there is a feeling that there is some light at the end of the tunnel," the valuation firm said. 

The report notes subsequently there have been reports that overall enquiry has increased and open homes are resuming.

◗ Some of the demand has been in the pipeline for some time from a combination of potential purchasers who were in the market prior to the restrictions and upgraders and investors who sold in the first quarter of 2020.

◗ Interest continues to flow with both capital city and ex-pat international purchasers looking to secure property on the Sunshine Coast.Some of this is being fast tracked.

◗ Should this demand be absorbed and if there is an increase in supply in the coming months, it will be interesting to see if there is an increase in new demand to fill the void.

◗ Some new purchasers are wanting to find a bargain, although this is not apparent in the market to date, especially in highly sought after areas.

Now, on to renovation

"They say 'idle hands are the devil’s tools', but when the pubs and clubs are shut, there are not too many other options.

"It appears they pick up a shovel, hammer or a paint brush. During the COVID-19 restrictions, it seems that one valuable commodity has been created....TIME. At the moment, there is plenty going on in the home improvement and maintenance space," the valuation firm said. 

"As we have previously mentioned, stock levels are extremely low. With the combination of these stock levels and the uncertainty of the market, the thought of selling and upgrading the house has slowly been losing some of its appetite, especially if you really like the area you live in," the valuation firm said. 

The feedback from local tradies, hardware shops and garden centres is that business has been pretty good as people look to upgrade their existing property.

"We have also received feedback that a local swimming pool building franchise has 21 new projects halfway through the month of May compared to seven for all of April. This appears to be occurring right throughout all the established areas of the coast, with older homes being transformed to little gems," the valuation firm said. 

Sure, some of this home improvement activity has been completed to add value to the home so that when they do go to sell, it is presented in the best possible condition, the report noted. 

If the property has a reasonable floor plan, the recent results of these renovated properties have shown good returns.

"We note that some feedback from agents is that a number of builders have been looking for some little side projects just in case there is a bit of a slowdown in the future." 

A fully renovated two bedroom apartment in Coolum Beach has recently been sold for $645,000.

The 9/1682 David Low Way home (pictured below) comprises two bedrooms, two bathrooms, PAC kitchen and two balconies. 

It is located within walking distance to cafes, shops and restaurants. 

Sunshine Coast's stock levels remain extremely low: HTW residential

A current listing is a renovated townhouse in Caloundra priced at $559,000.

The three bedroom, two bathroom home is situated at 1/29 North Street (pictured below).

It features open plan kitchen, dining and living, outdoor patios and double lock up garage. 

Sunshine Coast's stock levels remain extremely low: HTW residential

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