SSKB’s development consulting service is about getting it right from the start. We are expert in strata schemes across Victoria, QLD and NSW, delivering body corporate and owner’s corporation levies that are ‘at market’ while identifying ways to increase developer’s margins even before construction begins.
The unit market on the Sunshine Coast area (here we also include Noosa) is continuing to show a rise in market activity. The Real Estate Institute of Queensland (REIQ) reports that the average days on the market and average vendor discounting of the listing price has improved over the past twelve months. These are both good signs for developers.
The Noosa region is recovering after its unit market suffered through the impact of the GFC. Over the June quarter the Noosa Unit median unit prices rose 9.2% largely due to the number of sales in the prestige market sector.
The graph below, courtesy of the REIQ shows the apartment price movement over the past six months. The strengthening numbers of sales in the over $500,0000 price category with corresponding weakening numbers of sale in the lower priced stock on the market.
Source: REIQ Quarterly Market Monitor Oct 2015
These trends in the sales and average prices of Sunshine Coast apartments are beginning to attract the attention of developers. There were 865 building approvals for apartments and townhouses in the year to July 2015 in the Sunshine Coast region. Total building approval numbers for apartments and townhouses rising to levels last seen in 2007, pre GFC. Sale prices in new development projects will need to sit above $350,000 mark to take account of increases in land prices and building costs over the past few years. So strengthening in the apartment sector will give some confidence to these developers to begin construction.
The Sunshine Coast has recorded tightening residential vacancy rates. Maroochydore Coastal region has reduced to a new low of 1.2%, overall the average for the Sunshine Coast was 1.6% at the end of June 15. According to the Residential Tenancies Authority weekly rents have remained stable. We believe that with vacancy rates at below 2% and continuing increase in demand from the forecast population growth, rents must rise in the medium term.
Employment in the $2 billion University Hospital project and the students attending the University itself has driven demand for rental accommodation.
We believe that conditions are right for a number of new apartment and townhouse projects to begin marketing and construction. Most activity is in the smaller unit developments or townhouse projects that are targeted at owner occupiers or to supply the rental market. We believe that these developments will meet the demands of the Sunshine Coast market for the next few years.
SSKB works with developers across all three states on the eastern seaboard, our community managers are well versed in trends in their local communities. Kerrie Young and the development consulting team are available to meet with developers at the inception of a new community or apartment project to use our experience to assist with the due diligence process.
SSKB’s New Projects manager, Kerrie Young is experienced in both property market research and project sales and marketing. She maintains an overview of trends in supply and demand in the property markets in which our clients operate.
Kerrie Young AAPI FDIA – Developer Consulting Team New Projects Manager
Mob: 0428916411 firstname.lastname@example.org