Sunshine Coast property: Entry level homes and units on the market

‘No frills’ homes in need of renovation, townhouses and units have been identified as entry level homes on the Sunshine Coast, off the back of booming prices.

It might’ve bought you a house just two years ago but $600,000 has now become the going rate for a no frills townhouse or unit as prices surge more than 20 per cent across the region.

Real estate agents have revealed what “entry level” now looks like on the Sunshine Coast where prices boomed off the back of low interest rates and an influx of interstate buyers and investors.

Aura Property sales consultant Adam Morris said entry level homes were likely “a little more basic” in terms of fixtures and fittings and may need renovations.

He recently listed 1/25 Bando St, Pacific Paradise, for offers around $550,000, which was under contract within eight days.

“At that price point you don’t get things like the flash fittings in kitchens, ducted aircon or a swimming pool,” Mr Morris said.

This home at 1/25 Bando St, Pacific Paradise, was under offer within eight days of being listed for sale for $550,000.

Mr Morris said with another interest rates rise looming those looking to buy property for the first time should not push their budget.

“My advice would be to prepare for the worst and hope for the best,” he said.

“Depending on which page of the paper you read we’ll either return to normal interest rates of four to six per cent or it could get quite tough and they could wind up higher.

“This period of near zero interest is unprecedented … it was only ever going to go one way.”

Mr Morris recommended buyers looked at properties that needed work that could be completed yourself.

“Especially at the moment with the threat of interest rates,” he said.

A two-bedroom apartment at 7/119-121 Bundilla Boulevard, Mountain Creek, is for sale for offers over $499,000.

“You don’t want to be overextending to get into your dream property first up

“It’s great to have the nice shiny things but not if they’re going to keep you awake at night.”

McGill Group director Mark McGill also urged first home buyers to opt for properties that needed work, rather than a dream home.

Mr McGill said some first home buyers were foregoing new home grants and instead opting for established homes because of the supply and trades shortage.

“The other thing people don’t talk about is they have to renew their finance approval over the 12 months for the build,” he said.

Mr McGill said two years ago about $450,000 would buy a two-bedroom unit or small house in the coastal suburbs.

A two-bedroom unit at Nambour at 1/57 Netherton Street has been pitched as an opportunity for entry-level buyers, with offers above $439,000 being considered. It was listed by Remax Property Sales Nambour.

He said those same properties would likely sell for $600,000 now.

“I feel like the lack of affordability for first home buyers has seen them look elsewhere,” Mr McGill said.

Prestige Residential sales agent Monique Parry recently listed a one bedroom, one bathroom unit at 66/8 Starling St, Buderim, for sale for offers over $350,000.

The unit was at the Atrium complex which was built 10 years ago and was one of several on the market for less than $500,000.

Ms Parry said a driving factor for some first home buyers was the rise in rental costs.

This unit at 66/8 Starling St, Buderim, was listed for sale by Prestige Residential for offers over $350,000.

“For first home buyers it is hard to get into the market but we do still have entry-level properties, like those one bedrooms for $350,000, that’s a good buy,” she said.

She encouraged first home buyers to contact agents directly to get onto data base.

“With my data base as soon as I get a property listed I contact those people on my data base first before it goes to market,” she said.

“Get your finance pre-approved too so you can move quickly on that and know what you can buy.”

A two-bedroom unit at 11/37 Buderim Ave, Mooloolaba, is going to auction and expected to be within the price point for entry level buyers.

Rowan Woodbine of Ray White said anything between $500,000 to $550,000 for an apartment or townhouse would be a cheap buy within Maroochydore and Kuluin.

“If you’re looking for a house in Maroochydore you’d be looking at the mid-700s,” he said.

Mr Woodbine, who has worked on the Sunshine Coast for seven years, said the region had experienced several markets.

“Where those entry levels are now is where houses were two years ago,” he said.

Ray White Maroochydore has listed this three-bedroom unit at 4/204-206 Main Rd, Maroochydore, for sale for offers over $559,000.

“Through that area you could have been able to get a house for $500,000 to $600,000 at the higher end, whereas now with that price you’re talking about a townhouse.”

As rentals continue to be unaffordable and difficult to secure Mr Woodbine said even at that price it was still cheaper to buy.

“If you can lock in interest rates now for two to three years you’ll be able to control your outgoings,” he said.

“With interest rates and inflation going up we’ll see rents rise again.”