‘They come, and just never go home’: Why the Sunshine Coast’s prestige market sees a spike in winter - Queensland Property Investor
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‘They come, and just never go home’: Why the Sunshine Coast’s prestige market sees a spike in winter

Sunshine Coast’s prestige market sees a spike in winter

It’s the annual winter prestige property pilgrimage from the southern states to the Sunshine Coast that leading local agent Vicki Stewart has come to know so well.

“People from Sydney and Melbourne come up the first year and fall in love with the climate and the area,” says Ms Stewart, the director of Stewart Property. “They return the next year and don’t want to go home again, so start looking at places to buy.

“And by the third year, they come, and just never go home.”

Sunshine Coast’s prestige market sees a spike in winter 1

She did exactly the same thing too, 34 years ago, on a visit from Sydney, and says that migration from daydreamer to new owner causes a dramatic spike this time every year in the market.

Real Estate Institute of Queensland chief executive Antonia Mercorella agrees. “Many travel for a holiday and fall in love with our world-class beaches, fine dining and luxury retail shopping precincts,” she says.

“The seeds are planted and while our prices are high compared with the rest of Queensland, when compared with Sydney or Melbourne prices they’re an absolute bargain.”

Sunshine Coast’s prestige market sees a spike in winter 2

At the same time Noosa, at the top of the Sunshine Coast market, has been performing exceptionally well and in the 12 months to March 2019 has hit 8.7 per cent growth, making it Queensland’s strongest area, as against Brisbane’s one to 3 per cent, and the Gold Coast’s 2 to 3 per cent. Since 2014, Noosa prices have risen 44 per cent.

There have been some stellar sales too in the past 18 months, including the $15.2 million sale of tennis ace Pat Rafter’s mansion on Noosa’s Sunshine Beach, followed by the Sunshine Coast record-breaking $18 million purchase of a seven-bedroom trophy home nearby. “But as a general rule of thumb, what you’d buy in Sydney for $20 million will cost you just $8 million here,” says Ms Stewart.

Sunshine Coast’s prestige market sees a spike in winter 3

Domestic tourism – of which this coastal region is “the Australian rock star” according to Visit Sunshine Coast chief executive Simon Latchford – always sparks the property market, while its “Hamptons-style cool” continues to drive it on and up.

“The market does leverage off tourism but, often, as soon as people arrive they realise its strengths,” Mr Latchford says. “There are two airports, lots of new infrastructure, a laid-back lifestyle, an extraordinary climate with no cyclones, crocs or box jellyfish, a community atmosphere in a place that hasn’t been allowed to develop too fast, and Brisbane is only an hour and a half away.

“If you want to savour life as it was back in the ’70s, then this place can offer that environment.”

Sunshine Coast’s prestige market sees a spike in winter 4

The prestige market from $5 million to $12 million is particularly strong at the moment, with demand surging and stock so tight that one buyer bought a home at Noosa Heads in the past few weeks for $2.9 million over the phone, sight unseen.

“We now have a lot of buyers making multiple offers and there’s not much stock as people are making generational purchases; they’re planning to keep it long-term and hand it down to family rather than sell it,” says agent Nic Hunter from Tom Offermann Real Estate.

“Noosa has always been the pinnacle of that prestige end of the market, and people just love the relaxed lifestyle and village atmosphere.”

Four homes in the area

Noosa Waters

Sunshine Coast’s prestige market sees a spike in winter 5

For sale by informal tender with a guide of more than $4 million, this five-bedroom home has a spectacular waterfront position, with beautiful mountain views and a peaceful position.

“As with all the best homes on the Sunshine Coast, you have to consider the cost of not buying now,” says agent Adrian Reed of Reed & Co.

Mooloolaba 

Sunshine Coast’s prestige market sees a spike in winter 6

With deepwater access and an upgraded pontoon to allow the owner to keep anything up to a 58-footer safely moored at home, this family house was designed by Frank Macchia to have a true north aspect.

The home has an in-ground pool and a steam-room, while a recently-installed solar system generates over 100kWh of power in summer and is fitted has battery storage.

It’s going to auction on July 14 through Loren Wimhurst of Next Property Group, with a guide of $4.5 million to $5.5 million.

Noosa Springs 

Sunshine Coast’s prestige market sees a spike in winter 7

Floor-to-ceiling windows in almost every room make sure that the stunning views are maximised and that this house is flooded in natural light.

The media room has its own cosy fireplace, there are electric shutters and blinds and an openable roof to control light and temperatures, and underfloor heating on the ground level and in the bathrooms that service the master bedroom.

The home is for sale with a guide of $3.3 million, with Joe Langley of Universal Property Sales.

Alexandra Headland 

Sunshine Coast’s prestige market sees a spike in winter 8

Billed as a 6-star resort-style home, this home has great north-east ocean views and is just a short stroll to the beach, cafes and shops from its large 1,200sqm block.

There’s an internal lift to each floor, a grand entry foyer, a sound-proofed cinema, in-ground pool and pool room, with landscaped gardens.

It’s for sale with a guide of $3.3 million, through agent Craig Porter of Next Property Group.

 

 

Source: www.domain.com.au

Brisbane

The Brisbane suburbs where house prices are higher than last year

The Brisbane suburbs where house prices are higher than last year

The historic suburb of Windsor in Brisbane’s north has seen the biggest growth in median house prices in the last year, with a 17.2 per cent increase year-on-year.

New figures from Domain have revealed the top 10 suburbs whose median house price has risen the most year-on-year. Despite a largely flat market, there are still plenty of suburbs where prices are surging.

Windsor had the highest increase in median house price at 17.2 per cent year-on-year, followed in second place by the leafy inner-western suburb of Auchenflower which saw a 11.4 per cent increase.

Other suburbs in the top 10 include Queenslander paradise Newmarket (10.9 per cent increase), the massive blocks at Bridgeman Downs (9.8 per cent increase), and the outer-western suburb of Heathwood (8.3 per cent increase).

Ray White Wilston principal Allistair Macmillan said the massive increases in price at top performer Windsor were likely due to the suburb not always getting the recognition it deserved.

“For a long time Windsor has been slightly undervalued,” he said. “It’s so close to Wilston and Grange. [They’ve] always been supremely popular with families, I think Windsor was dragging the chain a little bit with those values.

“When you look at values in Windsor, they can vary quite a large degree depending on whereabouts in Windsor they are positioned. What we’ve found is that now the difference between the two sides of Gympie Road is nowhere near as prevalent as it once was.

“Of late, people have really come and been able to see the value Windsor does offer.”

Mr Macmillan said other contributing factors include the recent multimillion-dollar redevelopment of the Albion public transport exchange. Buyers on the eastern side of the suburb in particular have expressed interest in the plan.

The Brisbane suburbs where house prices are higher than last year 1

The vast majority of buyers in the area are younger families who are looking to be in the Windsor State School catchment area, and are attracted to the many local parks, bikeways, and public transport options.

“Stock is incredibly tight,” Mr Macmillan said. “Generally speaking if you look at the volume of properties, there’s not a lot that are for sale in Windsor. It’s still a very tightly held suburb.”

Elsewhere, the northern suburb of Northgate also fared very well, with a median house price increase of 8.9 per cent year-on-year. Local agent Dwight Colbert at Ray White Aspley said the location and amenities were the big drawcards.

“[We’ve seen] popularity due to the proximity to the Brisbane CBD, Brisbane Airport, and also an array of public transport,” he said. “You are on the Northgate train line, which is the main one on the north side, and the hub.

“You’re between Nundah Village, you’ve got Banyo Village, you’ve got good access to the Gateway [Motorway], Toombul Road, Sandgate Road, Gympie Road. It’s quite a desirable locality to get in and out of everywhere.”

Mr Colbert said the area was traditionally seen as a haven for older buyers, but in recent years many young couples and professionals had taken the plunge.

The Brisbane suburbs where house prices are higher than last year

“There is a lot of property development going on in Northgate as well,” he said. “So a lot of the older, bigger blocks are being subdivided. Which is also certainly going to help with the average house price.”

West Brisbane family-favourite Auchenflower pulled out a particularly impressive result, posting a 11.4 per cent increase in median house price year-on-year. This makes it the third-most expensive suburb in the city, up from 12th last year.

Place West principal Andrew Degn credits the suburb’s massive gains to the recent completion of major infrastructure in the area.

“Five or six years ago they finally finished gentrification of the old Milton tennis centre and turned it into a park called Frew Park, which is adjacent to [Milton State School], and the playground, and that goes through to the Rosalie village,” he said.

Auchenflower also features the Wesley Hospital, the recently upgraded Milton State School, and various inbound and outbound public transport options. Mr Degn was so passionate about the area he decided to buy and live there himself.

“Real estate people are supposed to know good real estate, and I live in Auchenflower,” he said with a laugh. “So there you go, I’m personally responsible for pushing the price up.”

Top 10 suburbs with the largest house price increase since last year

1. Windsor – 17.2%
2. Auchenflower – 11.4%
3. Newmarket – 10.9%
4. Yamanto – 9.9%
5. Northgate – 8.9%
6. Heathwood – 8.3%
7. Brassall – 8.1%
8. Toowong – 7.6%
9. St. Lucia – 7.4%
10. Hendra – 7.1%
11. Karana Downs – 7.1%
12. Indooroopilly – 6.9%

 

 

Source: www.domain.com.au

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Brisbane

Five Australian Cities Make World’s Top 30 Luxury Residential Markets

Five Australian Cities Make World’s Top 30 Luxury Residential Markets

Australia’s ultra-luxury residential market, largely unaffected by the impact of recent lending restrictions, has continued to record positive growth in the prestige sector of the market.

Sydney, Melbourne, Brisbane, the Gold Coast and Perth make up the five Australian cities which rank in the world’s top 30 cities for luxury residential price growth.

The major east coast cities of Sydney, Melbourne, Brisbane and the Gold Coast have now recorded 25 quarters, or more, of positive annual growth for luxury property, according to Knight Frank’s Prime Global Cities Index for the third quarter 2019.

Defined as the most desirable and expensive property in a given location, prime property is generally the top 5 per cent of each market, by value.

Sydney ranks 17th in the global rankings, with 2.6 per cent annual growth, Melbourne at 21st spot recording 2 per cent growth.

Brisbane followed closely ranking 22nd with 2 per cent growth, the Gold Coast which was included in the Index for the first time earlier this year moved up the rankings to 26 with a 1.3 per cent increase, and Perth ranked at 30th recording a 0.7 per cent rise.

Knight Frank’s Prime Global Cities Index

City12-Month Change (Q3 2018 -Q3 2019)
1. Moscow11.1%
2. Frankfurt10.3%
3. Taipei8.9%
4. Manila7.4%
5. Berlin6.5%
6. Guangzhou6.2%
7. Geneva5.6%
8. Zurich4.5%
9. Delhi4.4%
10. Madrid4.2%
17. Sydney2.6%
21. Melbourne2%
22. Brisbane2%
26. Gold Coast1.3%
30. Perth0.7%

Knight Frank’s head of prestige Residential Deborah Cullen says the top end of the market is showing more consideration and time in transacting.

“There is still strong interest from local and expat buyers for blue ribbon areas and for “best in class” assets, in particular the waterfront areas of Sydney,” Cullen said.

“Growth in prime property prices closely follows the performance on the stock exchange,” Knight Frank head of residential research Michelle Ciesielski said.

“And there have been some significant gains made on the Australian sharemarket in 2019.

“Collectively the Australian prime market has continued to see sustainable growth of 2 per cent in the year ending September 2019, whilst the sharemarket recorded a 7.7 per cent return,” Ciesielski said.

Slowdown gathers pace in top-tier cities

The global cities index increased by just 1.1 per cent in the year to September 2019, down from 3.4 per cent last year, with slower prime price growth attributable to mounting economic headwinds.

Despite a longer-than-expected period of loose monetary policy and steady wealth creation, the report notes that luxury sales volumes are at their weakest for several years in many of the first tier global cities.

“Slower global economic growth– the IMF lowered its 2019 forecast from 3.3 per cent to 3 per cent in October – along with escalating headwinds: US-China trade relations, Hong Kong’s political tensions, a US presidential election in 2020 and the Brexit conundrum are influencing buyer sentiment,” the index notes.

Moscow recorded the highest rate of growth with an 11 per cent increase over the year to September.

The report notes that Moscow leads the index largely due to strengthening demand and the completion of a number of high-end projects in prime areas like Ostozhenka and Tverskoy.

The prime global cities index is a valuation-based index that tracks the movement in prime residential prices in local currency, using data, across 40 cities.

 

 

Source: theurbandeveloper.com

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Gold Coast

The Gold Coast suburbs posting double-digit price growth

The Gold Coast suburbs posting double-digit price growth
The Gold Coast property market has seen impressive sales booms in some suburbs while prices have fallen in Brisbane, new data has shown.

House prices have grown 6.8 per cent in the Gold Coast hinterland over the past year, and 2.7 per cent in city’s eastern suburbs, while Brisbane’s city-wide median house price fell by 1.8 per cent over the same period, according to Domain’s House Price Report for the September quarter.

Median house prices have risen most in Clear Island Waters, Paradise Point and Coombabah, while units in Mermaid Waters, Arundel and Coombabah saw the biggest jumps.

The median unit price in Mermaid Waters had increased by 21.2 per cent to $472.500 in the year to October. Local agents say the interest in the area stretches from Mermaid Waters right across to the ocean.

 Median price growth – houses
SuburbMedian priceYoY change
Clear Island Waters$932,00013.0%
Paradise Point$1,155,00011.1%
Coombabah$440,0006.7%
Merrimac$514,0006.0%
Tugun$698,0005.9%
Carrara$571,0005.3%
Biggera Waters$610,0005.2%
Hope Island$905,0005.1%
Burleigh Heads$815,0003.8%
Runaway Bay$8755003.0%
Source: Domain

Mermaid Beach is the second-most expensive suburb in Queensland with a median house price of $1.455 million, and the Gold Coast’s exclusive beachfront street Hedges Avenue is experiencing a surge in sales.

A number of notable sales this year have included 99 Hedges Avenue which sold for $6.395 million and 223 Hedges Avenue, which sold for $6.325 million. A vacant lot at 49 Hedges Avenue sold for $4.2 million.

Leading agent Luke Henderson from John Henderson Professionals Mermaid Beach said prestige buyers were feeling extremely confident about the economic future of the Gold Coast and the city’s property market.

“I think you just can’t beat waking up to the sound and the sight of the waves crashing onto the beach,” Henderson said. “Mermaid Beach is a lifestyle destination, with its relaxed coastal vibe. Strict height limits ensure that its village feel is retained and buyers feel comfortable when paying for such a great location that their investment has good potential for capital growth.

“Currently we’re seeing the lowest listing levels I can recall in 20 years of selling real estate in the suburb, which I believe is due to concern from sellers that if they sell out they may not be able to get back in at the same price level.

“Strong growth has also been recorded in Mermaid Waters which is a highly popular area for families, due to its larger land sizes and location in the heart of the Gold Coast making it easily accessible to shopping, cafes and transport.”

He added he expected the market to remain strong heading into the Christmas and New Year period.

“Spring and summer are always growth periods on the Gold Coast,” he said. “Southerners look to secure a position in readiness for next year’s school commencement and to ensure the great warm weather we see at this time of year.”

 Median price growth – units
SuburbMedian priceYoY change
Mermaid Waters$472,50021.2%
Coombabah$451,50012.9%
Arundel$378,50012.3%
Main Beach$785,0008.3%
Runaway Bay$530,0005.5%
Benowa$570,0003.6%
Burleigh Heads$598,5002.7%
Broadbeach Waters$533,0002.5%
Surfers Paradise$385,0001.3%
Nerang$330,7500.8%
Source: Domain

The median unit price in Arundel rose 12.3 per cent over the past 12 months to $378,000, and 26.2 per cent over the past five years, Domain data shows.

“Arundel is seeing growth because we have bigger blocks, bigger houses and property is well priced,” said Neil Cameron, principal at Harcourts Arundel said. “We’ve seen growth around the golf course and the light rail has also attracted interest. Schools are good in this area, and we’re close to the M1.”

In Coombabah median unit prices were up to $451,000, an increase of 12.9 per cent over the past 12 months, and 24.7 per cent over a five-year period.

The location and value for money were the main draw cards to the area, according Ray White Runaway Bay sales agent Ross Kachel.

“Parks, shops and Coombabah Lakes are all right on the door step, as is Runaway Bay shopping centre,” he said.

 

Source: www.domain.com.au

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