Coast property market 'thaws out' with values on the rise
THE strongest national winter sales since 2007 have the Sunshine Coast property market thawing.
Traditionally the best selling period, spring is tipped to see an increase in new properties coming on to the market.
Demand for housing has steadily increased in 2014, leading to a shortage of supply.
This has put pressure on prices. The lift comes on the back of most Australian capital cities seeing the biggest rise over the winter months since 2007.
Market analysts have warned the Sunshine Coast not to expect the same increases as being experienced in Sydney (16.1%) and Melbourne (11.7%).
The RP Data CoreLogic Hedonic home value index of Australian capital city dwelling prices rose by 1.1% in August.
The rise brought the total gain over June, July and August to 4.2%, the biggest rise over the winter months since 2007.
On the Sunshine Coast, RP Data's review of house prices has shown the market is emerging from the post GFC slump.
House values across the Sunshine Coast have increased by 6% in 2014, the highest annual growth since the 12 months to April, 2010.
This follows a rise of 1.2% for the year to November, 2013. Yet they are still 1.6% below the five-year average.
Unit prices are up 5.6% for 2014 at $359,657 but down 6.8% on the five-year figure.
RP Data research director Tim Lawless said Sydney and Melbourne were driving a two-tier market.
The next strongest markets were Adelaide, Brisbane and Darwin, with price rises averaging between 5% and 6%. Mr Lawless expects a rise in listings of properties for sale over the next few months.
Meanwhile, RP Data research analyst Cameron Kusher, in Noosa for The Business of Real Estate confer
ence, said growth was Sydney and Melbourne-centric because of a number of factors - low interest rates and that that those cities were the strongest to recover from the GFC.
"They have equity and they are looking to upgrade or be investors in their own cities,'' Mr Kusher said.
"The confidence is stronger there, big business and financial services are based there.
"Since the GFC we are not seeing the traditional outflow of people from NSW and Victoria to south-east Queensland,
"The next step is the affordability of properties when Sydney has seen 30% growth in two years and Melbourne 20% in two years.
"At some point people will not be able to afford that, especially once you adjust for inflation and no wages growth.''
RP Data estimates that there were 8879 homes sold across the Sunshine Coast region over the 12 months to November 2013, which is 19.4% higher than the same period one year earlier.
Andrew Garland of Ray White Caloundra has seen the number of sales go up while the number of days a property is on the market go down.
"Property is in demand, the issue is supply Coastwide for prime properties,'' Mr Garland said.
Amber Werchon of Mooloolaba-based Amber Werchon Property does not get caught up in speculation but focuses on the feel and signs of change in the market.
"Statistics are lag indicators,'' she said.
"We know the lead indicators and overall things are positive.
"Based on this year's winter sales, the outlook for October is very optimistic for the spring selling season, into summer and beyond."
Noosa real estate principal Tom Offermann said house prices were definitely increasing on the Coast.
"In Noosa, prices have clawed back around half of the 25%-40% falls caused by the GFC, and this trend will continue while interest rates remain low,'' he said.
Murray Brown of Hinternoosa Realty said the Noosa hinterland had largely shaken off the after-effects of the GFC.