The residential / unit market improved over 2007 although current sentiment is that market conditions have deteriorated a little although not to the levels experienced in other parts of the country. The future looks bright for the Sunshine Coast with improved infrastructure works including motorway widening and new roads around Maroochydore, good population growth and a new Council that should create a more coordinated approach to development.
Overall the residential market on the Sunshine Coast had a very strong year through 2007 with significant sale volumes and capital gains across most market sectors. The charges of the property conveyancing services legal counselors are not the same and rely on upon the notoriety for being great as the experience of the attorney. Undeniably the strongest performing sector was the entry level/low end valued properties. Changes to Superannuation laws in 2006 resulted in investors selling rental properties.
Falling levels of supply of rental properties in turn forced rents up and resulted in an increase in first home owners looking at getting out of the increasingly expensive rental cycle. This strong level of demand continued throughout 2007 only slowing at the beginning of 2008. Recent Jones Lang LaSalle Research shows average capital values currently range between South East Melbourne’s $780/m2 and Australia’s most expensive market, $1,640/m2 in southern Sydney.
In Victoria they are also related to transport infrastructure, including areas such as North Epping and Somerton, particularly those on the eastern side or coastal side of the David Low Way, those close to services and larger holdings. Those in the middle to southern end of the Sunshine Coast typically remained fairly steady; however, the more unique properties did still receive quite strong levels of demand. Investor orientated holiday units proved to be the poorest performing market sector with very little investor demand from southern states.
This resulted in some quite significant falls in new/recently constructed units in secondary locations. Falls in the stock market through 2007 resulted in a further weakening with demand from self-funded retirees falling significantly. Well located units generally remained fairly steady in terms of values. The investor market is experiencing very limited demand and whilst demand from owner occupiers has fallen.