Media release – date SUNSHINE COAST PROPERTY MARKET RECOVERY SET TO STRENGTHEN IN 2012 Peter Wrigley from First National Real Estate Carolans says the local property market is showing lots of potential for 2012, with signs already that a slow recovery is underway. “In the last six months, the market has been moderating, and this is expected to continue as 2012 begins and the effects of the floods and cyclones wear off, and interest rates reduce,” Mr Wrigley said in the First National 2012 Property Market Outlook released this week. The key challenge facing the region’s property market in 2012 is seen by Mr Wrigley as overlycautious property valuers who are decreasing values too much and making it hard for sellers to sell their properties at realistic values. “The outlook for the Sunshine Coast property market is optimistic because it is very affordable and is a great location,” Mr Wrigley said. “Local council needs to get the central business district up and running and take away a lot of red tape, particularly with development applications.” According to the Outlook planned local developments and infrastructure projects which are expected to significantly impact the Sunshine Coast property market in 2012, include: -
Construction commencing on the new Kawana Hospital and widening of the Bruce Highway from Caboolture to the Nambour Turnoff.
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The finalisation of the sale of the Horton Park Golf Course and its pending relocation to Bli Bli.
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The beginning of a CBD in Maroochydore.
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The expansion of the Maroochydore Airport in 2014 and the possibility of fly in/out from the Sunshine Coast Airport.
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Purchase of the Hyatt Coolum Resort by Clive Palmer.
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The approval of a $40 million solar farm at Marychoodore.
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Record spend for capital works by local council in the coming year.
Mr Wrigley says residential property prices on the Sunshine Coast are expected to flatten in 2012 across all sectors of houses, apartment/strata and land. “There is potential for downwards movements of between 1 and 5 per cent due to excess supply and low demand, however low interest rates and improved overall affordability should stimulate activity to some degree,” Mr Wrigley said.
The rental market should see vacancy rates and weekly rent prices flatten in 2012, as rental properties are still very affordable on the Sunshine Coast and supply and demand are fairly constant. Mr Wrigley expects any increases in investor activity to be between 5 and 10 per cent due to lower interest rates and market conditions. “But it is Upgraders who I expect will represent the strongest growth in activity in the Sunshine Coast region due to affordable property prices,” Mr Wrigley said. Interest rates are expected to decrease by around 0.25 per cent which is expected to have a favourable impact on the property market, serving to strengthen consumer confidence and increase demand. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2012 Property Market Outlook, Peter Wrigley, Principal from First National Real Estate Carolans, on 07 5441 1344.