New hospital behind a rise in Caloundra and Maroochydore prices: HTW

The Sunshine Coast property market finished 2016 pretty well with sale volumes for the year being strong and in some areas exceeding our expectation of the growth in values, according to HTW’s February 2017 update.

The valuation firm says growth within the residential property market on the Sunshine Coast is expected to continue this year with a number of factors likely to fuel demand for housing.

"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 much anticipated opening of the Sunshine Coast University Hospital," the report said.

A four bedroom house at 69 Awinya Lane, Maroochydore (above) has been listed for $729,000.

Similarly a five bedroom house at 5 Beausang Street, Caloundra (below) was sold for $750,000.

“The opening is expected to continue to improve market sentiment, particularly along the southern coastal strip between Maroochydore and Caloundra,” HTW says.

“This is also expected to have a major impact on the rental market within these areas.”

Construction within the Maroochydore CBD has commenced and once completed will provide a business and entertainment hub for residents and tourists alike.

The expansion of the Sunshine Coast airport and runway extension has had federal government funding approved with the private partnership yet to be announced.

 Once completed independent assessments value the economic benefit of the upgrade at $4.1 billion in the 20 years after it opens.

The northern coastal areas of the Sunshine Coast and the prestige markets in the Noosa area are expected by HTW to continue to see some growth throughout 2017.

“The strong markets and confidence of Sydney and Melbourne and more locally Brisbane areas are having a direct positive impact in the area,” the report says.

“Units are predicted to lag behind the housing market throughout 2017, however stock levels of all types of property are expected to remain relatively low which will place upward pressure on prices in some areas.

“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.

“2016 also saw a large increase in investor product in new estates, particularly the introduction of dual key dwellings comprising an attached one or two bedroom unit.

“The resale market for this type of product is still relatively untested with limited sales through local agents occurring in 2016.”

A significant portion of new house and land packages within these estates has also been marketed and sold to investors, both local and interstate, HTW says.

“The main concern in future is the balance between the number of owner occupiers and investors.

“Also the APRA policy to curb investment lending will continue to have an effect on the Sunshine Coast market. “