Multi-million dollar waiting game as sales go dormant
REAL estate agents are reporting extensive delays in the sale of prestigious, multi-million dollar Sunshine Coast properties due to a decline in demand from interstate buyers.
In stark comparison to the rest of the market, some of the Coast's high-profile blue-chip homes are sitting unsold for months on end.
While it is not all doom and gloom, the "fear of missing out" that 2018 buyers had is not here.
CoreLogic research analyst Cameron Kusher said demand for top-end real estate had weakened.
"Pretty much everywhere on the Coast has slowed. You do still have growth in those markets but it's nowhere near as strong," Mr Kusher said.
"Because it is much more difficult to borrow large sums.
"A lot of the demand was driven by people from Sydney and Melbourne, and they are less inclined to sell down there.
"And if you want to sell here you have to meet the market."
The following multi-million dollar homes have been on the market for more than 100 days: 41 Tantula Rd East, Alexandra Headland (113 days); 10 Jackman St, Moffat Beach (118 days); 20 Alexander St, Aroona (127 days); 119 Bridge Creek Rd, Maleny (191 days); 12 Mooloolah Island, Minyama (211 days); and 20 Byrne Lane, Maleny (506 days).
Elite Lifestyle Properties director Mark Unkel noticed the top-end market begin to slow from October last year.
"The top-end stuff takes time (to sell), but that's simply the nature of the beast," Mr Unkel said.
"Buyers from Sydney and Melbourne have slowed a tad, predominantly they are 85 per cent local buyers.
"The signs are good for us though, our negotiations have been healthy.
"There's not an over supply but there's not an over-demand."
Ray White Caloundra director Andrew Garland couldn't speak for the Coast as a whole, but said the market was still positive for buyers who saw value.
Just prior to Christmas his firm sold two multi-million dollar beachside homes to auction.
One was an oceanfront home 39 Victoria Parade, Kings Beach, which was on the market for the first time in 42 years, sold for $2,475,000 in just 35 days.
The other was Moffat Beach's last beach front double development block available, it sold for $2,275,000 in two months.
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"We've seen a slight decrease since November, which has reflected the mood, but if buyers see value, they still go," Mr Garland said.
"I think the year has started slower than expected and I can't see it changing.
"Last year's fear of missing out is not around. Buyers can and are sitting back and waiting."
LJ Hooker Twin Waters agent John Blackmore said Coast suburbs might not have the big name status and reputation of Noosa, but value was around.
He has a 10-year-old "holiday home" available that could become a record sale.
"The owners are from the UK but live in Malaysia, they only come here a few weeks a year, so it presents like it's new," Mr Blackmore said.
"Our market is still affordable and definitely the Coast is a nice time to buy."
Next Property Group agent Loren Wimhurst said blue-chip homes in Alexandra Headland were never dormant for long.
"It is a very strong area and there is limited supply, so they're priced accordingly, and I don't expect that to change," she said.
"All of Alex has taken off. Particularly by baby boomers downsizing but not wanting to comprise on style."