Sunshine Coast's fringes offer more bang for buck: HTW
Sunshine Coast in Queensland has remained a rising market for both houses and units in valuation firm Herron Todd White's property clock -- a simple broad brush means to suggest where property markets are and what direction prices are moving in.
HTW also examined the fringes of Sunshine Coast in its April's report.
The first half of 2015 was running pretty hot. There was a strong increase in sale volumes with entry level properties being the most popular. Investors comprised a higher percentage of our market with some buyers being priced out of some coastal areas. The sub $500,000 housing market close to coastal centres has shown the largest sign of the market improving. To find value and affordability for either investors or owner-occupiers, you are reviewing property type or looking further afield.
The population base generally runs along the coast from Noosa Heads south to Caloundra. While there are some small infill fringe areas near the coast, our real fringe areas tend to be the hinterland and railway townships form Cooroy in the north through to Beerwah to the south incorporating the main centre of Nambour and a number of small towns. Within these areas entry-level dwellings are around the high $200,000 to low $300,000 with these properties generally renting from between $300 to $350 per week which is not a bad return.
Within these areas there are a number of small infill subdivisions that have been performing well on the back of relatively low land prices. One big benefit is that the sizes appear to be more traditional at 600 to 800 square metre allotments with some larger rural residential allotments. Comparing this to the mainly small lot product in the coastal areas is leading buyers to look at these areas as a good alternative for families. Another factor leading to people looking at these areas to live and invest is the sense of community being generated. The schools have that country feel, there are a number of sporting clubs and the towns provide a small main street.
All in all we believe that these hinterland and railway townships have and will continue to tick over pretty well. There is very much a big affordability factor that goes into these areas and that you get some bang for your buck. We have also started to see some lifestyle factors come into play and the fact that people are looking to these areas to raise families.
Property Observer looked up a few recent sales around the $200,000 to $300,000 plus range in Cooroy and Beerwah on www.realestate.com.au and came up with these:
A two-bedroom townhouse at 6/16a Kauri Street Cooroy Qld 4563 (above) sold for $330,000.
A two-bedroom house at 25 Greber Road Beerwah Qld 4519 sold for $290,500.