As the new year takes shape, Herron Todd White, Australia’s largest independent property Advisors, have come out with a 2009 review of Australia’s property market. Here is an excerpt from the release relevant to the Sunshine Coast. To view the full 2009 Australian property market review click here.
“Well, what a roller coaster of a year. We have had ups, and we have had downs. To say the market has been volatile and patchy would be an understatement.
The big winner of the year has certainly been the first home buyer market. This sector has certainly been the main driving force throughout the property industry on the Sunshine Coast. Volumes have been high on the back of increased demand underpinned by the various stimulus packages. As these stimulus packages are winding down, and credit continues to tighten, we have certainly seen a drop-off in demand in this sector, with investors beginning to return.
The prestige property/investment units were predicted to have the rockiest road. This certainly was the case, as we saw values softened significantly. In some areas on the Sunshine Coast the reduction in values from the peaks of 2007 had been in the vicinity of 20%. Over the past month in the Central Sunshine Coast area there has been an increased level of activity for properties in the $1 million vicinity. This has come on the back of the increased level of confidence that is being reported in the media. The sustainability of this ‘run’ is anyone’s guess, but it should continue well into 2010. We also predicted in January that one of the major impacts on the property sector will be unemployment.
Fortunately, this has not had as big an impact, so far. As we move forward into 2010, unemployment, which is a lag indicator of the economic climate, is predicted to increase, and unfortunately the Sunshine Coast has a higher than average share of unemployment. This, and further interest rate increases are likely to have a dampening effect on property. We’ve seen a number of road infrastructures projects come to completion. These projects certainly have improved accesses to various locations on the Coast.
One of the bugbears that continue to hound the region was the postponement of the Sunshine Coast University Hospital. Given the coast’s predicted growth rate and ageing population, we consider that an early the commencement of the hospital is critical for the future of the Sunshine Coast.
All in all, 2009 has been a tough year. There have been reports of increasing levels of confidence, which can only bode well for the future. This confidence is however tempered by the increasing interest rates and the potential increasing unemployment rates. As our Prime Minister has said on numerous occasions, ‘we are not out of the woods yet ‘.
2010 should be a better year for property, though the high price base the coast already has will make spectacular price growth unlikely.”
Brought to you by Tony Nash – RE/MAX Property Associates Sunshine Coast
Phone Tony and his team today on 07 5452 4545
www.rentaladvice.com.au
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