Property waves dump Noosa surf spot Peregian Beach as unit hotspots fail to fire

Property waves dump Noosa surf spot Peregian Beach as unit hotspots fail to fire
Property waves dump Noosa surf spot Peregian Beach as unit hotspots fail to fire

Apartment prices in the Sunshine Coast surfing town of Peregian Beach crashed on the shore after soaring in 2012.

Renowned for its unspoilt beaches, deep-fried Mars bars and laid-back lifestyle, Peregian Beach – situated between Noosa Heads and Coolum Beach – was the top performing unit market in the $501,000 to $700,000 price bracket as highlighted by Smart Property Investment magazine a year ago.

RP data records a 39% gain in median unit prices in Peregian Beach over the 12 months to February 2012 to $516,000.

However, unit prices fell sharply in the following 12 months with RP Data recording a 33% decline in median prices to $345,000 to February 2013.

Recent sales in Peregian Beach include a two-bedroom townhouse on David Low Way (pictured below) acquired by Brisbane-based property investment advisors Parker Property Investments for $480,000.

peregianmay29one

It last sold for $585,000 in 2003, an 18% drop.

The property was listed for nearly two-years with initial price of $595,000 with the vendor presumably deciding to accept a more realistic valuation of their investment after being unable to find a buyer.

The sale was negotiated by Ted Schimke of LJ Hooker Peregian Beach.

His colleague Paul Flanagan negotiated the sale of a two-bedroom unit on Peregian Esplanade (pictured below) directly across from the beach in February this year for $337,500. It had been listed for nearly eight months with an initial asking price of $379,000.

peregianmay29two

The Peregian Beach correction extended to the nearby suburb of Peregian Springs, where median unit prices fell 21% to a median of $315,000 in the year to February 2013 following a 48% gain in 2012.

The top three performing suburbs at the upper end of the market, all underwent corrections in the year to February 2013 following strong rises in the previous 12 months.

Median prices fell 16% in the leafy Boroondara suburb of Canterbury, 10 kilometres east of the Melbourne CBD, reversing the 17% gains made in 2012 with a median price of $730,000.

There were also significant corrections in North Fremantle (-12%) and Lavender Bay (-11%), the harbourside suburb on the lower North Shore of Sydney.

In total there were significant price corrections in eight out of the 15 hot spot locations, while four markets were flat and just two made noteworthy gains - West Leederville, just three kilometres north of the Perth CBD (a 42% gain followed by an 8% gain) and Windaroo in Logan City (33% followed by 31%).

However, Windaroo appears to be an anomaly with 2011 census data showing just three units out of nearly 900 dwellings in the suburb.

This the full list of the top 15 performers in the year to February 2012 and how they fared in the year to February 2013. Whilst listed as the top performers, they were not necessarily recommended by RP Data or SPI Magazine as property investment hotspots for 2013.

State

suburb

Annual sales to Feb 13

Median price Feb 2012

Median price Feb 2013

Median 12mth growth to Feb 2012

Median 12mth growth to Feb 2013

BEST PERFORMING SUBURBS $700,001 plus

WA

North Fremantle

70

$1.13 m

$777,500

49%

-12%

NSW

Lavender Bay

25

$740,000

$629,000

24%

-11%

VIC

Canterbury

28

$730,000

$614,500

17%

-16%

BEST PERFORMING SUBURBS $500,001 - $700,000

QLD

Peregian Beach

33

$516,000

$345,000

39%

-33%

WA

Kensington

18

$535,000

$436,250

36%

-18%

SA

Henley Beach

58

$572,500

$575,000

34%

0%

BEST PERFORMING SUBURBS $400,001 - $500,000

WA

West Leederville

35

$482,500

$522,000

42%

+8%

QLD

Windaroo

14

$480,000

$550,000

33%

+31%

QLD

Geebung

22*

$470,000

$405,000*

33%

-20.7%*

BEST PERFORMING SUBURBS $300,001 - $400,000

QLD

Peregian Springs

64

$391,950

 

48%

-21%

QLD

Kunda Park

19

$353,750

$308,000

47%

-13%

QLD

Hillcrest

36

$333,000

$331,750

43%

0%

BEST PERFORMING SUBURBS UNDER $300,000

NSW

South Tamworth

15

$165,000

$166,500

28%

+1%

SA

Port Lincoln

64

$220,000

$217,250

27%

-1%

TAS

Trevallyn

20

$290,000

$182,250

26%

-31%

*based on 2012 calendar year data

Source: RP Data/SPI Magazine

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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