Investors to bolster buying rush on the Sunshine Coast
Investors have been tipped to descend on the Sunshine Coast in droves in coming months, potentially supercharging what is already one of Australia’s hottest property markets. As one of the nation’s most popular markets, buyer activity and dwelling values on the Sunshine Coast have surged over the past 12 months.
Recent research by CoreLogic showed dwelling sales in February were 14.9 per cent higher than the same time last year, and 8.2 per cent above the five-year average for the region. House and unit values are also experiencing a strong uplift, with the median value of detached homes up 17.5 per cent since April last year, and 13.7 per cent for units.
Much of the buyer activity, however, has been driven by owner occupiers, with a sea-change phenomenon being accelerated by the coronavirus pandemic.But that buyer profile is about to change, according to Cube Developments director Scott Juniper, who has a strong pedigree of development in South East Queensland, particularly on the Sunshine Coast.
Mr Juniper said while the pandemic had highlighted the massive liveability of the Sunshine Coast, investor activity was yet to take off at the same rate as transactions driven by owner occupiers.
“I think right now, there is a big shift that’s about to happen,” Mr Juniper told Australian Property Investor Magazine.
“What I fully expect and I’m seeing on the ground right now, is there is starting to be a lot more takeup from the investor market. Obviously the coronavirus scenario is starting to settle down, but the same economic conditions relate to investors too."
“We’ve got the lowest interest rates in history being applied and we have a market where there are capital gains, but also affordability. Even though there has been growth in our market, we are still catching up to the average values in Sydney and Melbourne." “If you pencil capital growth in with low interest rates and extraordinarily low vacancy rates on the Sunshine Coast, you’ve got the perfect ingredients for investors to come into the market.”
- Dan Wilkie - API Newsletter
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