Twelve months ago, some people would have scoffed at the thought of buying properties off the plan; however, the huge increases in Maroochydore’s median unit price has prompted increased investor interest in the Emporio development, with investors rallying to secure their share of the long-term capital gains predicted.
Loan Market finance strategist Lindy Kelly said recent data from PDS Live indicated the median unit price in Maroochydore had increased by an average of 10.4 per cent annually over the past 10 years.
“The good news is if you do research well, buying off the plan in a rising market can potentially mean large capital gains before you even settle”, she said.
“Based on these statistics, investors could outlay a 10 per cent deposit on a $420,000 unit and earn their entire deposit back in capital gains – plus an extra $1680 – within a 12 month period,” Ms Kelly said.
General Manager of Development for Reed Property Group, Carl Nancarrow, said the Maroochydore area had out-performed key growth areas such as Noosaville, Mooloolaba, Caloundra and even standout Brisbane CBD areas such as Newfarm and Fortitude Valley in recent years.
“While most areas saw their median unit price fall following the global financial crisis, Maroochydore managed to turn the tables and, according to RPData, reported 7.4 per cent growth in the last 12 months,” Mr Nancarrow said.
Ray White Maroochydore’s principle Dan Sowden also confirmed “The strong growth in the region can be attributed to the fact that Maroochydore has been ear-marked by council as the Sunshine Coast’s principle activity centre.”
Emporio residents will also have exclusive access to a gym, resort-style pool, rooftop entertainment area, fibre-optic high-speed broadband, security systems and a residents lounge and theatre.
Mr Nancarrow said the huge population growth predicted in the Maroochydore region had also proved to be a strong draw card for Queensland investors. “The Sunshine Coast Housing Needs Assessment Background Study predicted numbers of permanent Coast residents will jump from $310,000 to $500,000 by 2031,” Mr Nancarrow said.
Considering Maroochydore is home to the major central business district on the Sunshine Coast , the area will undoubtedly be highly sought after for years to come.
“Investors who have done their homework have recognized this trend and are getting in quick and buying off the plan before unit prices sky-rocket,” he said.
Twin Waters residents Mick & Sue Rost are one couple who brought in to the Emporio development earlier this year and haven’t looked back since. Mr Rost said the cosmopolitan lifestyle and substantial financial yields presented by Emporio had attracted him and his wife to the development.
“We had been looking to invest in a development on The Sunshine Coast which gave us security and a sense of the ‘wow’ factor as well. We had experienced first-hand the Melbourne café, restaurant and residential village lifestyle and Emporio’s blending of residential with restaurants and fresh food marketplace, along with the open space including the lakes and boardwalks really appeal to us.”
“We felt the whole concept of work, live, entertain and dine within one community presented a lifestyle on the Coast that had not been realized.”
Emporio apartments are now selling from just $429,000. Stage one apartments are almost completely sold and the release of stage two apartments is just around the corner.
Source: Domain Property Week | Oct 9th 2010