Investors in the Sunshine Coast property market have been active, according to the latest Herron Todd White (HTW) residential report.
The valuation firm took a look at the rental yields across the nation.
The report notes market sentiment has improved which has in turn instilled confidence in the marketplace.
The main driver of this sentiment has been the major infrastructure projects currently under way across the coast.
The current low interest rate environment has also had investors looking to property to increase their returns.
Across the coast, gross yields normally tend to range between 4% and 15% which reflects the relative risk on investment.
“Properties situated within areas underpinned by re-development potential or situated in unique and sought after locations tend to be at the lower end of the yield range,” the valuation firm said.
A yield at the higher end of the range indicates the location, condition of the property and the additional maintenance costs required.
Units within the main tourist precincts can also achieve gross yields up to 15% however with high body corporate and management fees, these properties tend to show net yields in the 2% to 6% range.
“There has been a large increase in dual occupancy homes constructed across the coast with a main dwelling typically providing three- bedroom accommodation and an attached one or two bedroom unit,” the valuation firm continued.
“These properties have been primarily purchased by investors and have been selling with gross yields between 5.9% and 6.3%.”
The report suggests slightly higher yields can be achieved through the hinterland townships with properties comprising three to five flats in the Nambour area achieving yields in the 7% to 8% range.
Typically, these properties are older with ongoing maintenance required.
“In the prestige market, we have started to see an increase in the number of investors,” the valuation firm commented.
“This market is typically difficult to gauge given that there are a number of different drivers in the investment decision.
“This market is closely related to the southern markets of Sydney, Melbourne and Brisbane, so at the moment has been pretty good.”
A number of investors in this segment are certainly purchasing for a position or lifestyle choice and in quite a number of cases, with a view to the investment being the future retirement home and principal place of residence.
Therefore, a higher yield is not always driving the purchasing decision.
“All in all, the investment market on the Sunshine Coast has been pretty healthy.”
Hectare Site Near Hastings Street Hits the Market
A 7,989sq m site in the heart of Noosa Heads will test market interest when it launches this week.
Anglican Church Southern Queensland is “seeking all opportunities” on the 2 Halse Lane property, located 150 metres from Hastings Street.
The site, known as Halse Lodge and home to a backpackers’ hostel leased to Ecolodge, has been owned by the Anglican Church Southern Queensland (ACSQ) since 1959.
“We have been proud custodians of this prime Noosa site for 61 years,” ACSQ group manager property Hiro Kawamata said.
“Especially with the site and original building having links back to the 1880s, when the original structure was built as a guest house by a local grazier, Walter Hay, who is considered to be the ‘Father of Noosa’.”
The original building was replaced in the 1920s, and the property is the longest continuously operating guest house in south-east Queensland.
With the current lease expiring for use as a backpackers’ lodge, an expression of interest campaign for the property will launch on September 17 and close on October 22.
Blake Goddard and Matt Barker of Knight Frank are managing the sale, and expect interest to come from overseas, interstate and local groups.
“[This includes] food and beverage operators, boutique accommodation providers and private groups, however, we are keeping all options open and welcome all engagement throughout the campaign.”
Alexandra Headland apartments attract local buyers
Further south on the Sunshine Coast, privately-owned construction company McNab has topped out a 57-apartment project at Alexandra Headland helmed by developer Cube Developments.
Cube Developments director Scott Juniper says apartment sales at the project hit 90 per cent, with six of the 57 apartments remaining, and most of the buyers’ being locals, from the Sunshine Coast area.
Juniper says apartments are priced from $580,000 and range up to $2.49 million.
The development, at 120 Alexandra Parade, commenced construction in July 2019.
Throughout the sector’s restrictions, McNab construction manager Carl Nancarrow said the project is progressing well.
“This project has been incredibly important to the Sunshine Coast industry and the timing could not have been better in regards to providing certainty for our local trades,” Nancarrow said.
“We’re pleased we have helped provide a significant economic injection to the local economy.”
McNab is expected to wrap up construction by the end of the year.
Noosa’s Most Expensive Homes in Hot Demand from Buyers Across the Globe
The COVID-19 storm has spawned a hurricane of home sales across some of the Sunshine Coast’s hottest tourist magnets as property punters report unprecedented buyer action from city-based sea-changers in search of a pandemic-free paradise.
The rise of remote work and virtual inspections amid record low interest rates has further sparked the coastal migration with popular hub Noosa clocking millions of dollars in sight-unseen sales alone during the past month.
Adrian Reed, from Reed & Co Estate Agents in Noosa, said buyers from Brisbane to as far away as Hong Kong had pounced on the region’s high-end market, with the agency transacting $60 million in sales from April until August.
“It feels like there’s a gravitational pull towards those idyllic locations … and this trend has continued throughout COVID,” Mr Reed said.
“We sold $26 million in the past couple of months alone sight unseen.
“They are buying from abroad and domestically and then from Brisbane … and I think it’s likely to continue.”
He said the skyrocketing sales action had particularly centred around Noosaville, with $6 million of off-market property sold in the past six weeks.
The agency also clocked the latest Noosaville record for the spectacular mansion at 32-36 The Anchorage, which fetched $12 million. The property features 13 bedrooms and was the former home of the late businessman and founder of Hayco, Donald Hay.
Dan Neylan, from Dowling and Neylan agency in Noosa, said in his 27 years of real estate experience he’d never seen such incredible buyer activity.
“The average time on market for us has shrunk back to three weeks and most of our auctions are not even getting to auction,” he said.
“We had a sale for an apartment on the weekend where the reserve was expected to be $5.5 million but it sold for almost $6.5 million.
“Our biggest one was the sale of 46 Seaview Terrace which was Pat Rafter’s previous home – and that was sold in excess of [a record] $17 million at the end of May to the Rudds. They just saw the long-term value of Noosa.”
Mr Neylan said interstate buyers were particularly snapping up homes like hot cakes with the agency handling more sight-unseen sales than ever before.
He said many home hunters claimed the growing work-from-home-movement had finally allowed them to have a remote career from an idyllic place – and they were wasting no time pouncing on regional, coastal destinations.
“The future for us is pretty rosy and that’s going to last for the next two or three years and by then the international airport will be finished,” he said.
Tom Offermann, from Noosa’s Tom Offermann Real Estate, agreed the fierce buying storm was set to continue during spring with Brisbane buyers competing against interstate and overseas house hunters.
“This winter was like no other and out of the disruption caused by COVID came a storm of buying activity,” he said.
“We’re also seeing capital growth rates between 10 and 15 per cent … with the hot locations typically on the riverfront and the beachfront.”
Mr Offermann said last week’s sale of apartment 1 at Noosa’s prestigious Little Cove for a cracking $6.3 million following 38 bids from eight buyers, was the perfect example.
“This sale capped off another very successful week … with a string of high-value sales which included two breaking $10 million.
“There’s also been a string of nine sales between $5 million and $12 million but we can’t announce them yet because they haven’t settled.”
Despite the strong selling activity Mr Offermann said their agency was running at about 50 per cent of their normal stock levels, with nervous vendors still reluctant to pull the trigger amid the global uncertainty
This article is republished from https://www.domain.com.au/ under a Creative Commons license. Read the original article.
Sunshine Coast City Hall Paves Way for Pandemic Recovery
Sunshine Coast Council has commenced construction on the Sunshine Coast City Hall building within the new Maroochydore City Centre.
Local construction company McNab will construct the ten-level building which includes 21,500sq m gross floor area, with complementary commercial and retail uses, rooftop facilities and podium car parking all incorporated into the building’s design.
Mayor Mark Jamieson said the 5 Star Green Star, 5 Star Nabers-rated building would be a significant community asset that would be remembered for playing an important part in helping the region’s economy recover from the Covid-19 pandemic.
“The design is inspired by the landscape of the Sunshine Coast, our deep connection to the hinterland, our mountain ranges and our coastal plains.
“The City Hall will be bordered by the laneways of the city centre, South Sea Islander Way and First Avenue,” Jamieson said.
A number of retail and dining opportunities will be offered at the ground floor, and public art and landscaping will create attractive spaces to link the City Hall with its surroundings.”
Sunshine Coast Council endorsed the concept plan for the building in May 2019, and Jamieson said it was exciting to see work commence.
“Council understands the importance of construction projects proceeding at this time to build momentum in the economy and provide local jobs when they are needed most.
“The economic impact of starting construction on this project now cannot be understated, with a forecast 300 jobs likely to be established in construction and supply chain industries over the life of this project, ” Jamieson said.
“This comes at an important time as the region starts to make its way through the recovery phase of the Covid-19 pandemic, by creating new employment opportunities for local tradespeople and suppliers.”
Jamieson said the council’s headquarters—the region’s seat of democracy—will be in the geographic heart of the region, expanding its connections with, and accessibility to, its customers.
“Its design is consistent with our vision for the Sunshine Coast to be Australia’s most sustainable region, healthy, smart, creative, by reflecting our people, our culture and our natural elements,” Jamison said.
McNab Sunshine Coast manager Carl Nancarrow said the large project was a shot in the arm for the local economy at a time the region was emerging from the impact of Covid-19.
“Securing a project of this scale right now is not only important for McNab, it’s a major injection into the local construction industry and economy.
“We think the Sunshine Coast region has a very bright future, and we commend Sunshine Coast Council and SunCentral for the leadership and confidence they are demonstrating in our region,” Nancarrow said.
“It’s not every day we get to build a new landmark city hall, and we’re very proud that we can bring Sunshine Coast Council’s vision to life now that we have the green light to commence works on site over the coming weeks. ”
On completion in mid-2022, the City Hall building will accommodate the customer contact centre, council chamber, retail spaces and office accommodation for around 600 council staff.
City Hall is the third building currently under construction within the new 53-hectare Maroochydore City Centre greenfield development.
Local developer Evans Long is set to complete the precinct’s first commercial building, Foundation Place—spanning eight levels—in late September.
Brisbane-based Habitat Development Group recently commenced construction of its $85 million Market Lane Residences, comprising a two-tower development including 152 dwellings over 14 stories and six small-office, home-office (SOHO) terrace homes, along with ground floor retail for restaurants and cafes.
SunCentral Maroochydore chief executive John Knaggs said it was pleasing to see three major buildings under construction within the new CBD.
“The precinct will be buzzing with construction activity over the next few months and that is fantastic news for the local construction industry and the region’s economy as we emerge from the impact of Covid-19.,” Knaggs said.
“It reinforces our urban design and planning principles to create a vibrant city centre. ”
This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.
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