Coastal unit market on the rise
WHILE Brisbane's unit market has taken a massive dive, the Sunshine Coast is offering blue skies for buyers.
According to the latest CoreLogic Pain and Gain report one in five Brisbane unit sales was at a loss with predictions of more pain to come.
Yet the Sunshine Coast is on the rise with developer's cranes dotting the skyline from Maroochydore to Caloundra as an indication of demand.
The population growth is expected to continue that of the past five years and exceed 500,000 by 2030.
REIQ Sunshine Coast zone chair Amber Werchon said the delivery of key infrastructure across all sectors of transport, education, health, technology, sport and recreation was critical to the development of the region's identity and long-term liveability.
"Construction and development on the Sunshine Coast is currently active and moving at a fast pace with a broad range of infrastructure projects either under way or on the horizon", Ms Werchon said.
Latest REIQ statistics show that Alexandra Headland, Minyama and Twin Waters are the top three suburbs on the Sunshine Coast reporting the largest annual median sale price for houses, and for the unit market Caloundra West, Birtinya and Alexandra Headland recorded a double digit annual median sale price growth above 10%.
Having created a diversity of premium projects across both residential and commercial sectors, Sunshine Coast-based developer Walter Iezzi has his finger on the pulse when it comes to the timely release of projects which deliver to the market "what it wants, when it wants it.''
Mr Iezzi's early commitment to Mooloolaba, with his launch of Cilento in 2005, has seen another three residential projects - Monterey, Nova and Saffire - sell out back-to-back. In the past two years alone he has achieved more than $92million in luxury apartment sales.
His fourth project in this popular precinct, Elysee, is now under construction.
"There are very positive signs in the marketplace which indicate the Sunshine Coast is on the move. Mooloolaba and Alexandra Headlands are maintaining their strong position as a hot-spot. No sooner does one crane come down, does another go up,'' Mr Iezzi said.
"The demand we are currently experiencing from owner-occupiers seeking premium ocean-view apartment living is unprecedented. Astute investors need to move fast if they want to secure a slice of paradise.''
Other winners in Mooloolaba are ARIA with their Breeze development selling out and two other projects, Ocean Breeze and First Light, are also selling fast.
Reed Property Group CEO Jay Emmerton said that with the Brisbane apartment market now relatively saturated, the company expects to concentrate largely on Sunshine Coast and Gold Coast-based opportunities.
Mr Emmerton said the company - in conjunction with its construction division RCQ Construction - was set to deliver Mooloolaba development First Light ahead of schedule, with settlement expected to take place in early 2017.
"There are only a handful of apartments remaining within the development and we anticipate they will sell quickly as soon as prospective buyers catch sight of the stunning views on offer - both of the coast and hinterland."
"This construction activity is reflective of just how much the local construction industry as a whole has picked up over the past year.''
CoreLogic data analyst Cameron Kusher expected Brisbane unit resale losses to rise further through the rest of the year, given the high levels of supply coming on-stream.