Sunshine Coast property market seeing return of the overseas buyer: HTW

Sunshine Coast property market seeing return of the overseas buyer: HTW
Sunshine Coast property market seeing return of the overseas buyer: HTW

Like most coastal areas, the Sunshine Coast has an array of different property types which appeals to a number of different sectors of the marketplace, but the the entry level for each of these sectors has been performing well, according to Herron Todd White’s (HTW) latest monthly market report.

The property advisory firm says that due to the disparate segments, specific market analysis is difficult.

To try and provide some clarity, HTW have broken up the Sunshine Coast into the two main sectors – coastal and hinterland.

"When looking at the coastal areas for housing, the main feedback we’re receiving is that the sub $750,000 market is most active. This can be broken up into first home buyers active in the sub $500,000 level and upgraders above this," the report stated.

Homes tend to be of older style product close to the beach and modern homes on sub 500 to 600 square metre allotments within estates (although some estates are sub 300 square metres).

"For units we’re talking more in the sub $400,000 level with once again first home buyers being pretty active. These units usually comprise older townhouse product and smaller walk up unit complexes," the report observed.

An example would be a two bedroom unit at 20/291 Gympie Terrace (pictured above) that is for sale for $460,000.

When we look at the other end of the scale, the slower markets tend to be in the higher value bands, say above $1.5 million.

The market is very much buyer and vendor specific, with inconsistencies experienced and both weak and strong sales being recorded. More simply, there are just less people running around with that amount of money to spend.

There are certain areas where the activity is strong up to $2 million. Brisbane, Sydney and Melbourne buyers are the most active as well as local upgraders. Some overseas buyers are coming back into the market with the lower Australian dollar.

HTW noted that property prices within hinterland towns drop.

"When we cast an eye to the hinterland markets, the price point drops further with homes down to sub $400,000 within hinterland townships and sub $500,000 for homes on rural residential allotments," the report said.

"First home buyers and local residents upgrading into new or larger properties are the most active. We are also seeing people relocating from coastal areas to more traditional sized allotments.

"The unit market in these areas is typically thin apart from Nambour with limited levels of stock. Values tend to be trading in the sub $275,000 level and are typically townhouse and villa product."

Similar to the coastal region, the higher value $750,000 plus rural residential market continues to remain patchy and very much buyer and vendor specific.

There are certain areas where the activity is strong up to $1.3 million and then it thins out. The big benefit for these properties is that there is an ability to purchase at below replacement cost which is always attractive.

"As you can see from the above, the Sunshine Coast market is difficult to gauge," HTW suggested.

"At the moment there are a number of good news stories which are still creating interest in the region."

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Sunshine Coast Htw

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