Property Factsheet · 2018-06-13 · a population of 29,355, which is an 8.4% growth over the past 5 years. *Estimated values are based on construction value provided by the relevant

BuderimProperty Factsheet1st Half 2018

OVERVIEW

FUTURE DEVELOPMENTS*Buderim is set to invest approximately $15.0M worth of development in the 1st half of 2018, the majority being residential projects (72.0% or $10.8M). This is followed by mixed-use (18.0% or $2.7M) and commercial (10.0% or $1.5M). Buderim has a low vacancy rate of 1.5%, thus high residential development in the area are designed to meet demand.

A significant project commencing in the 1st half of 2018 is the Ballinger Road Buderim Gated Residential Development ($5.0M). This involves the rezoning of 80 lots of ecologically sensitive gated residential development.

A main commercial project is the Buderim Market Place Woolworths Refurbishment which is estimated at $1.2M. This project will involve the internal refurbishment of the Woolworths supermarket within Buderim Market Place Shopping Centre.

A total of 80 lots, 26 units, and 7 townhouses are planned for the Buderim area in the 1st half of 2018; split between 1 mixed-use and 4 residential projects. This will see more high quality stock entering the Buderim market in the near future.

Buderim, located approximately 6km from the Sunshine Coast offers a blend of active beachfront living and the laid-back feel of the Sunshine Coast Hinterland. At the 2016 ABS Census Buderim recorded a population of 29,355, which is an 8.4% growth over the past 5 years.

*Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value. Quoted construction and completion dates are estimate only, as per relevant data authority.Source: APM Pricefinder, realestate.com.au. © Copyright PRDnationwide 2018.

MARKET CONDITIONS

CHANGE FROMLAST YEAR HALF

YEAR

House Sales

House Median Price

House Rental Price

Unit Sales

Unit Median Price

Unit Rental Price

SUNSHINE COAST REGIONAL GROWTH

The Buderim house market has grown by 4.0% over the past 12 months to Q1 2018, recording a median price of $655,000. Over the same time frame (Q1 2017- Q1 2018) the unit market has also recorded growth, however, at a more moderate rate of 2.5% (to a $409,500 median price in Q1 2018).

The house market in the Sunshine Coast Regional Local Government Area (LGA) has grown by 2.4% between Q1 2017-Q1 2018 to $590,750. In contrast, the unit price softened by -4.8% to $400,000 in Q1 2018. This suggests that Buderim is a premium market when compared to the Sunshine Coast LGA, both from an entry price point and capital growth perspective. Owner/occupiers and investors looking to buy in the Sunshine Coast area need to consider Buderim as an area to invest.

Average vendor discounting for houses has slightly widened over the past 12 months to -2.3% in Q1 2018, suggesting sellers are willing to negotiate on first list asking price. Those looking to buy a house need to act now to benefit from increasing affordability. Average vendor discount for units tightened over the past 12 months from -4.0% to -3.7% in Q1 2018. Unit sellers are achieving closer to their first asking price, potentially due to an undersupply in the market. Now is the perfect time for unit sellers to put their unit on the market.

The rental market in Buderim continue to serve investors well, with the median rent price increasing by 8.7% to $560 per week for houses and 8.9% to $398 per week for units. This, coupled with rewarding rental yields of 4.2% (houses) and 5.3% (units) confirms Buderim as an attractive option for investment. First time and seasoned investors need to consider Buderim in their portfolio.

$0$100,000$200,000$300,000$400,000$500,000$600,000$700,000

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Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

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House Unit Vacant Land Median House Price Median Unit Price Median Land Price

Source: APM Pricefinder. © Copyright PRDnationwide 2018.

HOUSE MARKET COMPARISON

UNIT MARKET COMPARISON

KEY FACTS UNIT

Average vendor discount reflects theaverage percentage difference betweenfirst listed price and final sold price. Alower percentage difference suggestsbuyers are willing to purchase close tothe first asking price of a property.

AVERAGE VENDOR DISCOUNT

Average vendor discount reflects the average percentage difference between first list price and final sold price. A lower percentage difference (closer to 0) suggests buyers are willing to purchase close to the first asking price of a property.

AVERAGE VENDOR DISCOUNT

MARKET COMPARISON GRAPHThe market comparison graph provides comparative trend for median price of house and units over the past 10 years. Suburbs profiled are chosen based on proximity to the main suburb analysed in the factsheet, which is Buderim. The main suburb is highlighted through a dotted black line graph.

AVERAGE VENDOR DISCOUNT-2

.1%

-2.0

%

-3.0

%

-2.9

%

-2.7

%

-2.3

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-4.1

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-4.0

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-6.0

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-4.4

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-3.7

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-7.0%

-6.0%

-5.0%

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Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

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Buderim Mountain Creek Kuluin Maroochydore

$200,000

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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Buderim Mountain Creek Kuluin Maroochydore

AVERAGE DAYS ON MARKET

SALES AND MEDIAN PRICE

*Annual growth represents price growth for property transactions between Q1 2017 to Q1 2018 (inclusive).Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2018.

KEY FACTS UNIT*Median Sale Price : $785,000Annual Area Growth: 11%Average Days on Market: 36% Change between First Listed Price and Sold Price: -0.1%

HOUSE KEY FACTS Q1 2018

UNIT KEY FACTS Q1 2018Median Sale Price: $409,500Annual Growth: 2.5%*Average Days on Market: 94% Change between First Listed Price and Sold Price: -3.7%

Median Sale Price: $655,000Annual Growth: 4.0%*Average Days on Market: 69% Change between First Listed Price and Sold Price: -2.3%

54

56 60 63 57

69

40

68 67 59 98

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Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Aver

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House Unit Overall Market Trend

160

133 141152 157

118

5665

5067 62

45

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Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

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House Sales Unit Sales Median House Price Median Unit Price

HOUSE PRICE POINT 2016 HOUSE PRICE POINT 2017

SALES PRICE POINT COMPARATIVE ANALYSIS

KEY IMPLICATIONS - HOUSE The proportion of houses sold in 2017 remained in the $500K-$600K price bracket, which has decreased from 31.6% in 2016 to 24.9% in 2017. Sales below this price bracket shrunk to 9.8% in 2017. First home buyers need to buy now to secure their dream property.

There has been an increase in the number of sales for all upper priced brackets, reflective of the 4.0% median price growth over the past 12 months. Further, house sales in the $800K-$900K price bracket and those higher than $1.0M have doubled. This suggests a move towards higher house prices, which is good news for sellers looking to put their property on the market.

UNIT PRICE POINT 2016 UNIT PRICE POINT 2017

KEY IMPLICATIONS - UNITThe proportion of units sold in 2017 were mostly within the $350K-$400K price segment, which decreased from 29.4% in 2016 to 22.4% in 2017. Apart from this, the unit market has not seen significant changes in the price structure. Affordable options are still accessible, approximately 9.3% of the market is under $300K. Investors with their fingers on the pulse need to act now as this opportunity won’t last long.

All price segments of unit sales $400K and above have experienced slight increases in 2017, reflecting the 2.5% increase in median unit price during this period and signals demand in the higher priced bracket.

Source: APM Pricefinder. © Copyright PRDnationwide 2018.

1.4%

16.1%

31.6%24.1%

12.1%

6.1%

3.6% 5.1%

Less than $399,999$400,000 to $499,999$500,000 to $599,999$600,000 to $699,999$700,000 to $799,999$800,000 to $899,999$900,000 to $999,999$1,000,000 and above

10.5%

14.9%

29.4%16.1%

10.5%

5.2%5.2%

8.1%

Less than $299,999$300,000 to $349,999$350,000 to $399,999$400,000 to $449,999$450,000 to $499,999$500,000 to $549,999$550,000 to $599,999$600,000 and above

9.3%

14.3%

22.4%

18.1%

10.5%

6.8%

8.4%

10.1%

0.5%

9.3%

24.9%

24.7%

13.8%

11.4%

4.8%10.4%

Overview

HOUSE UNIT

MEDIAN RENT AND AVERAGE DAYS ON MARKET

KEY COMMENTSThe number of houses rented in Buderim has decreased by -9.0% over the past 12 months to Q1 2018. This factor has driven the weekly median rent price to increase by 8.7% to $560. On the other hand, the number of units rented over the same time (Q1 2017 – Q1 2018) has increased by 10.3%, yet weekly median rental price has also grown by 8.9% to $398. This suggests a real increase in demand for units and investment value for investors. Investors need to enter the Buderim market now to start benefiting from strong rental demand.

Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2018.

HOUSE KEY FACTS Q1 2018

UNIT KEY FACTS Q1 2018Median Rent Price: $398 per weekRental Yield: 5.3%Average Days on Market: 23Bedroom Breakdown: 1 Bed: 8%, 2 Bed: 44%, 3+ Bed: 48%

Median Rent Price: $560 per weekRental Yield: 4.2%Average Days on Market: 21Bedroom Breakdown: 2 Bed: 5%, 3 Bed: 33%, 4+ Bed: 62%

INVESTMENT ANALYSIS

2 Bedroom

3 Bedroom

4+ Bedroom

1 Bedroom

2 Bedroom

3+ Bedroom

119 122107 112

123111

7768

5669 70 75

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House Unit House Average DaysUnit Average Days Median House Rent Median Unit Rent

Buderim Sunshine Coast LGA Queensland

Median weekly household income $1,402 $1,206 $1,402

Median monthly mortgage repayments $1,902 $1,777 $1,773

Unemployed 6.8% 7.1% 7.6%

Professionals 25.3% 19.1% 19.8%

Owned outright 35.5% 34.0% 28.5%

Owned with mortgage 34.3% 32.8% 33.7%

Rented 22.8% 28.9% 34.2%

KEY COMMENTSRental returns in Buderim are currently at 4.2% (houses) and 5.3% (units), which is on par with that of Sunshine Coast Main (4.6% and 5.1% respectively).

Four+ bedroom houses provide the highest annual rental growth at 4.3%.

Buderim’s vacancy rate was recorded at 1.5% in December 2017, lower than the Sunshine Coast Main (1.7%) and significantly lower than Brisbane Metro (3.7%). This suggests a healthier rental demand in Buderim. Further, Buderim’svacancy rate has declined by 0.9% over the past 12 months whilst Brisbane Metro’s has increased, confirming it as an investment hotbed.

Suburb/Postcode/

LGA

House Rental Yield

Unit Rental Yield

Buderim(Postcode

4556)4.2% 5.3%

Sunshine Coast Main 4.6% 5.1%

Brisbane Metro 3.8% 5.0%

RENTAL YIELD 2017

KEY HOUSING DEMOGRAPHICS

RENTAL PERFORMANCE 2017*

VACANCY RATES 2017

*Rental performance graph represents aggregate house median rent prices in Buderim. Annual change is a comparison between 2016 and 2017 median rent figures. Source: APM Pricefinder, SQM Research, ABS Census 2016. © Copyright PRDnationwide 2018.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Mar-16

Jun-16

Sep-16

Dec-16

Mar-17

Jun-17

Sep-17

Dec-17

4556 Sunshine Coast Main Brisbane Metro

$378$470

$575

2.0%

-2.1%

4.3%

-3.0%-2.0%-1.0%0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%

$100

$200

$300

$400

$500

$600

$700

Two Bedrooms Three Bedrooms Four + Bedrooms

Median House Rent P/W Annual Change

*Disclaimer: Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes. **Projects refers to the top developments within the suburb of Buderim.***Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value.****Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRDnationwide does not hold any liability to the exact date. Source: Cordell Database, ESRI ArcGIS, Sunshine Coast Regional Council. © Copyright PRDnationwide 2018.

PROJECT DEVELOPMENT MAP 1st HALF 2018*

Location Project** Type EstimatedValue*** Commence Date****

1 Ballinger Road Buderim Gated Residential Development (80 Lots) Residential $5,000,000 14/02/2018

2 Stringybark Road Units (15 Units) Residential $3,000,000 26/03/2018

3 Jorl Court Townhouses (7 Townhouses) Residential $1,900,000 02/04/2018

4 King Street Units (4 Units) Residential $900,000 20/06/2018

5 Burnett Street Mixed Use Development (7 Units) Mixed Use $2,700,000 26/02/2018

6 Buderim Market Place Woolworths Refurbishment Commercial $1,200,000 05/02/2018

7 Ballinger Park Sports Complex Telecommunications Facility Commercial $300,000 05/01/2018

10.0%

72.0%

18.0%

Commercial Residential Mixed Use

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