Sunshine Coast suburbs' gentrification leading to renovation demand: HTW

Sunshine Coast suburbs' gentrification leading to renovation demand: HTW
Sunshine Coast suburbs' gentrification leading to renovation demand: HTW

The Sunshine Coast has seen an increase in the gentrification of established suburbs, particularly coastal and beachside localities where the availability of vacant land for new builds is scarce, according to the latest Herron Todd White (HTW) residential report. 

Therefore the opportunity to renovate and cash in on the current demand for these areas is seen as a viable alternative, the valuation firm advised.

The report suggests the main driver of gentrification within these older areas is the location close to amenities and the beach. 

The Sunshine Coast also has some large infrastructure projects which are attracting a significant number of people.

A major attraction to the established areas within the central Sunshine Coast is the prospect of the new CBD which is currently under construction.

Moving further north, the areas of Mount Coolum, Yaroomba and Coolum Beach are seeing increased demand with access to the new international airport being a major draw card.

Up north in the Noosa region, the areas in Sunrise Beach, Sunshine Beach and old Tewantin near the river and town centre and also Noosa Junction are seeing a significant number of renovations and re-builds, once again, location close to shops, cafes and beach or river being the biggest attraction.

The southern areas of the coast have already seen and will continue to see the benefit from the medical precinct and Sunshine Coast University Hospital.

"The majority of renovations are being completed by owner occupiers," the report noted.

"Typically they are looking to stay in their current location which may be close to schools or the beach and they want to create their dream home."

The report noted the added benefit is that over the past 12 months, well-presented properties with good quality renovations have attracted a premium as purchasers are seeking properties that require no work to be done.

However these properties have mostly been along the coastal strip where demand outweighs supply. One example in Peregian Beach was a property purchased for around $580,000 in original condition. The purchasers completed a full renovation and this property recently sold for just over $900,000.

"Renovations have typically been restricted mainly to housing but we have started to see renovations being completed on older walk up style unit complexes," the valuation firm noted. 

"The risk with these renovations is that if the body corporate is not in a position to do works to the exterior of the building, this may detract from the internal renovation and therefore may not achieve the desired result.

The typical entry price point for these types of properties along the coast ranges from $550,000 to $750,000 however, the entry price point within the northern suburbs of Sunshine Beach and Noosa Heads is typically $900,000 and $1.1 million for properties that require extensive renovations.

"The demand for this market is expected to continue with proximity to the beach being top of mind given the coast life style," it advised

A recent sale was a three bedroom Tewantin home which was traded for $672,000 (pictured above).

Situated at 36 Butler Street, the circa 1956 home comes with three bedrooms, two bathrooms, separate living areas, and large kitchen.

The existing home could be renovated or to build a second property alongside. 

Sunshine Coast suburbs' gentrification leading to renovation demand: HTW

Another example was a renovated four bedroom Buderim home which has been sold for $660,000 (pictured above).

Situated at 21 Jingellic Drive, the renovation of the house include two bathrooms with a total cost of $80,000, free standing timber vanities and LED lit niches.

The rest of the home internally remains in a near original condition. 

Tags: 
Renovation Sunshine Coast

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