For an unparalleled lifestyle and a home that will only grow in value, building in a coastal locale is the way to go
The lure of beachfront living is undeniable, but if you’re ever in a position to build a beachfront home, it may be comforting to know that it not only delivers an enviable lifestyle, but also enviable growth to your property’s value. In the June 2018 quarter of Queensland Market Monitor, our strongest growth markets in Queensland were all beachfront communities.
Noosa is Queensland’s powerhouse property market, delivering an astonishing 6.9 per cent growth to the median house price over just 12 months. With a median house price of $695,000, it is also the most expensive house market in Queensland. Looking at the Sunshine Coast’s premium suburbs, all are beachfront:
Sunshine Beach (Noosa Shire): $1.4 million
Minyama (Sunshine Coast): $1.3 million
Noosa Heads (Noosa): $1.1 million
Alexandra Headland (Sunshine Coast): $1 million
Noosaville (Noosa): $925,000
This is a clear indication that coastal living is highly desirable for many. Not only are people paying a lot to buy or build in these stunning areas, once they’re in they almost never leave. The hold periods for the five longest-held suburbs on the Sunshine Coast all exceed the hold period for the Brisbane Local Government Area (LGA), which was 11 years. Those five suburbs are:
Dicky Beach: 16.1 years
Caloundra: 15.3 years
Battery Hill: 14.7 years
Yaroomba: 14.1 years
Golden Beach 13.6 years
Real Estate Institute Queensland (REIQ)’s advice is if you see an opportunity to build a property in a stunning beachfront location, move fast! REIQ’s data demonstrates that owners have proven to hold onto property longer when they are on the coast or very close to it. Coastal suburbs also generally tend to have a median price above the LGA median.
There have been some record-smashing sales on the Sunshine Coast and in Noosa since the beginning of 2018, with new buyers paying millions for homes that make the most of Noosa’s laid-back lifestyle and magnificent sea views.
The outlook for the house and unit market in this part of the world is positive, considering the pile of infrastructure investment and the popularity as an internal migration destination. The future of the property market is dependent on the regional economy and employment market growing at least at the same pace as the population growth.
The rental market outlook at the start of 2019 remains stable, with vacancies potentially remaining within the tight to healthy range and rents most likely stabilising over the months ahead.
Of course, while the Sunshine Coast and Noosa are shining diamonds in Queensland’s property story, they’re not the only places with stunning world-class beaches. Further south, the Gold Coast has traditionally been the engine driving the Queensland market forward. Over recent years it’s been a strong performer, delivering around six per cent growth year-on-year to the median house and unit price.
We are starting to see that growth ease a little. In the 12 months to June 2018, the median house price grew 4.5 per cent. However, this growth is still stronger than the Brisbane median of 2.5 per cent over the same period. Sales volumes are easing, which is impacting the rate of growth.
Looking at units, the Gold Coast unit market is the third most expensive unit market in Queensland, following Noosa and Brisbane LGA. This market turns over around 10,000 units a year, which is slightly more than Brisbane LGA.
The Gold Coast is one of the most popular destinations for internal and overseas migration in Australia. ABS data revealed about 6900 net internal residents and 5370 net overseas migrants relocated to the Gold Coast for the year to June 2017. This is a tight rental market, with a need for more rental stock.
Tourism is the major generator of economic activity, contributing $4.7 billion (13.8 per cent) to the Gross Regional Product. Tourism will continue to do the heavy lifting in employment creation in this post-Commonwealth Games period, adding 41,700 jobs or the equivalent to nearly 14 per cent of the labour force.
Queensland has thousands of kilometres of pristine beachfront and only a fraction of it is in the south-east corner. If you’re looking for more bang for your buck, head north to Hervey Bay, the Fraser Coast and Bundaberg. These regions all offer beachfront living at a much more affordable price point, in the range of $287,000 to $320,000.
Generally speaking, all our coastal markets from the Fraser Coast north to Mackay and Townsville will deliver spacious beachfront living for around $300,000 to $350,000. Only Cairns is an outlier, the tourist town that has defied regional trends to add modest growth year on year. The median house price is now $410,000 and looks set to continue its modest trajectory.
The lifestyle offered by Queensland’s regional coastal towns is unparalleled. They offer great places to raise a family, with good schools and amenities, while also providing the convenience and benefits of living in a city smaller than the capital.
These regional markets are on their way back and we’re going to see some strong median house price growth in the next couple of years. If you’re thinking of building in these markets, it’s advisable to move fast because it’s likely we’re going to see increased activity as the local economies improve.
Words: Felicity Moore
Felicity Moore is the media and communications manager for the Real Estate Institute Queensland (REIQ). reiq.com