Micheal Matusik's Key Ingredients For Generic Price Growth
Supply: It has become patently clear from all data that the Sunshine Coast region is growing at a faster rate in population than what is currently being built to meet demand. Shortages are projected to increase prices on both housing and rental markets.
Property cycles:
Believes the doom and gloom stated in capital cities media is over-rated. Many commentators coming out with off-the-cuff remarks but their figures don't bear it out. Melbourne and Sydney markets saw a slight decline, but he states that coastal precincts such as Noosa are virtually recession-proof.
Rental Yields: (South East Queensland detached house market
)
Average yields state a 3% gross rental yield in Noosa. Matusik's research shows that is misleading and is actually about 7%. Investors should concentrate on areas where infrastructure is in place or near the water. Sunshine Coast has had the greatest growth on rentals in the past five years.
Prices:
Noosa average house price is $650,000 - by far the most expensive in SEQ. The top end of the market is still performing quite well. Sales are picking up as vendors meet the market. Noosa prices up 12% last year and 10% in the December quarter - most of the growth was late last year and Matusik tips this to continue.
Hot Spots:
An under-valued area to watch on the Sunshine Coast is the Coolum to Marcoola coastal area.
Interest Rates:
General consensus is they have risen once and are likely to
rise again. Matusik believes if there is to be another interest rate rise later in the year he predicts they will fall again in 2006.
T
wo-year outlook for South East Queensland: A predicted 75,000 p.a. population growth. He believes a potential for under-supply of housing could exist by the end of this year. He also predicted 70,000 new full-time jobs will be created, low unemployment will exist and interest rates will rise again by about ˝ %.
Market Overview
: A positive outlook. As we move forward expect more price growth of about 10% in the next couple of years rather than anything too dramatic. Now is a good time to buy as there are some bargains to be found but look to hold for the long term.