RSS FeedsClouds hang over Sunshine Coast
THERE has been a lot of attention paid to the increased confidence and even the odd fierce bidding war erupting for capital city residential properties.
But so far that heat hasn’t filtered into the Sunshine Coast apartment market.
It’s had another tough quarter, and although sales have increased slightly, there is still plenty for bargain hunters to run an eye over.
Agent PRDnationwide’s latest Sunshine Coast Apartment Report tallies up the June quarter results, finding 69 new units were sold in 35 residential projects.
That’s nine more sales than there were in the June quarter of 2008 and there was a very slight growth of 0.78 per cent in the average median sale price.
PRDnationwide Sunshine Coast director Syd Walker says it’s clear that the present buyers are after a bargain.
“The majority of transactions are being achieved towards the more affordable end of the market, and any luxury apartment sales are being snagged at basically cost price,” he says. “There is still a reasonable over-supply of new unit product on the Sunshine Coast and buyers can afford to be selective and demand some bang for their buck.”
Valuer Herron Todd White says something similar in its July market review, which looked at where to spend $500,000.
It says that the Sunshine Coast market has a lot of properties for sale, and those close to the region’s beaches and tourist precincts should be viewed closely.
“Given the substantial levels of supply we do note that some vendors are reducing asking prices to achieve sales, which will also aid in purchasing good properties around this $500,000 level,” says HTW.
As always, price is the crucial factor for buyers.
PRDnationwide’s report found that 29 per cent of the sales were struck at less than $450,000 and a further 25 per cent were within the $550,000 to $649,000 range.
For buyers who can afford to spend a little more, that might be where the value lies, Walker says.
The slightly more expensive apartments often offer far more in quality and value, as there tends to be less buyer interest.
“Spending an extra $50,000 for a third bedroom in a struggling market is certain to pay off when the market returns,” Walker says.
During the quarter, 37 sales were new two-bedroom apartments, and 25 were three-bedroom apartments. But in a further testament to just how price-conscious buyers are, there were no new four-bedroom or penthouse apartments sold during the period.
The most active sales areas for new units were at the southern end of the Sunshine Coast at Caloundra, Pelican Waters and Kawana Island.
Together they accounted for 43 per cent of the sales.
There are still 29 months of new unit supply, a sizeable drop from the 60.9 months in June 2008. But in the new, harder economy, and with the fractured confidence and tighter hip pockets of those who traditionally move north, it could take up to two years to be absorbed.
But supply has fallen for the fourth straight quarter and Walker says that will continue, with few new projects planned as developers struggle to get finance and build to a cheaper price point.