Flippers make $650k profit in just six months on Minyama home
Cashed-up southerners seeking a sea change have sent house prices rocketing on the Sunshine Coast, where homes are selling for hundreds of thousands more than what they were worth just six months ago.
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Savvy investors are making hundreds of thousands of dollars in a matter of months by flipping houses on the Sunshine Coast where property growth has outstripped every other region in Queensland.
One investor pocketed more than $245,000, almost the yearly wage of LNP Opposition leader David Crisafulli, after buying and selling a house within six months at Minyama without even adding as much as a coat of paint.
A New Zealand couple walked away with $650,000 profit, or more than $25,000 per week, after selling their luxury Minyama property within six months of purchasing it last November.
They bought the four-bedroom waterfront home for $2.65 million in November and offloaded it for $3.3 million. The only new addition was a new glass pool fence.
And not to be outdone, a young Brisbane couple made a killing after building a duplex on a vacant block at Bokarina during Covid and walking away with a net $250,000 profit.
Much of the boom is being placed on a sea change mentality created by the pandemic, experts say.
The latest property data shows the southeast coastal regions of Queensland are booming as a result of the heavy migration flowing in from NSW and Victoria or their need for a holiday home by the sea, experts say.
The Sunshine Coast has had a staggering 17.5 per cent rise in the median house price in the 12 months to April 2021, according to Ray White’s latest statistics.
Not far behind was the Gold Coast with a 16.6 per cent jump and the Wide Bay region where the median house price grew 14.6 per cent.
All three coastal areas have not only outperformed Queensland (13.4 per cent) but also Melbourne (5) and Sydney (11.2).
Ray White’s chief economist Nerida Conisbee said Victorians were largely behind the massive surge in house prices.
She said other contributing factors included lifestyle choices with employees now working remotely and a higher take-up in holiday homes in light of international border and intermittent state border closures.
“All that money coming out of Melbourne and Sydney has really pushed that pricing up,” Ms Conisbee said
“We haven’t seen this sort of movement out of Victoria since the early 1990s when the recession really hit Victoria hard.
“The other trends are people working remotely and choosing where they would prefer to live rather than having to be close to work and people buying holiday homes so they have somewhere to travel.”
The greatest suburban jump has been up-market Main Beach on the Gold Coast where the median house price has skyrocketed 53.6 per cent to $2.15 million.
Marcoola has had the biggest gain on the Sunshine Coast with 43.8 per cent while Brisbane’s best performing suburb has been Yeronga (30.3 per cent).
Ms Conisbee said Queensland had been a very affordable place to live for a “long time” although that was rapidly changing.
She said many of the suburbs that were deemed “expensive” on the Sunshine Coast and Gold Coast were attractive to well-heeled Victorians and NSW residents who would view them as very affordable purchases.
“We were seeing decent price growth on the Sunshine Coast and Gold Coast before the pandemic but Covid has really accelerated the pace of change in pricing,” she said.
“Main Beach is the most expensive suburb in Queensland and $2.15 million gets you a beautiful home, but maybe not so beautiful in Sydney.
“When you look at the suburbs that did well on the Sunshine Coast, many of them are pretty expensive. Sunshine Beach is now over $2 million and Minyama is now getting towards $1.5 million.”
The amazing growth in South East Queensland is far from over says, CoreLogic’s head of research, Tim Lawless.
He predicts another 12 months of double-digit growth in areas but not as steep.
“I don’t think there will be the same level of growth that we have seen in the past 12 months where there has been a lot of stimulus and the market improving off a relatively low base,” Mr Lawless said.
“Over the next 12 months, there will be double-digit growth because the affordability in these areas is still pretty attractive, but just not as high.
“The Sunshine Coast, Gold Coast and Brisbane have had a relatively mild long-term growth cycle and had seen nothing like the growth Sydney and Melbourne over between 2012 to 2019.”
He said the ‘sea change’ factor was a major driver across parts of NSW and Victoria as well.
“We can see strong growth in markets in areas like Byron Bay, the Richmond-Tweed, Gold Coast and even Victoria’s Mornington Peninsula,” he said.
“It comes back to more migration coming to these areas and we are also seeing people positioning towards holiday homes and lifestyle properties.”
The positive aspect for properties just outside areas such as Main Beach and Sunshine Beach, where price growth has been strong, is that they’re likely to rise next, Ms Conisbee said.
“There is always a ripple effect to other areas, so if someone can’t afford Main Beach they usually look for a suburb close by,” she said.
EAST COAST MEDIAN HOUSE PRICE COMPARISON* – (Apr 2020-21)
Region – percentage increase
Sunshine Coast 17.5
Queensland 13.4
Sydney 11.2
Melbourne 5
QLD HOUSE PRICE GROWTH BY REGION*
Region – median price – percentage increase
Sunshine Coast $795,926 17.5
Gold Coast $763,231 16.6
Wide Bay $353,655 14.6
Brisbane – East $672,576 13.2
Moreton Bay – North $508,107 13.1
Brisbane – North $700,560 12.4
Qld – Outback $201,231 10.3
Moreton Bay – South $580,603 10.2
Brisbane – West $822,318 10.2
Whitsundays (Mackay/Issac) $373,497 9.5
TOP PERFORMING SUNSHINE COAST SUBURBS
Suburb / Median / percentage increase
Marcoola $805,500 43.8
Lake Macdonald $782,500 34.9
Sunrise Beach $1.14m 33.3
Cooran $575,000 28.3
Flaxton $820,000 27.1
Sunshine Beach $2.05m 23.9
Eumundi $788,000 18.5
Pomona $670,000 18.0
Coolum Beach $803,500 17.8
Minyama $1.4m 17.2
* Source: CoreLogic/Ray White (sample size minimum 30 sales)
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