Buderim Property Factsheet 1st Half 2018 OVERVIEW , 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.

CHANGE FROM HALF YEAR LAST YEAR

House Sales

House Median Price

House Rental Price MARKET CONDITIONS Unit Sales 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 Unit Median Price 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). Unit Rental Price 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 FUTURE DEVELOPMENTS* contrast, the unit price softened by -4.8% to $400,000 in Q1 2018. This Buderim is set to invest approximately suggests that Buderim is a premium market when compared to the Sunshine $15.0M worth of development in the 1st half Coast LGA, both from an entry price point and capital growth perspective. of 2018, the majority being residential Owner/occupiers and investors looking to buy in the Sunshine Coast area projects (72.0% or $10.8M). This is need to consider Buderim as an area to invest. followed by mixed-use (18.0% or $2.7M) and commercial (10.0% or $1.5M). Average vendor discounting for houses has slightly widened over the past 12 Buderim has a low vacancy rate of 1.5%, months to -2.3% in Q1 2018, suggesting sellers are willing to negotiate on first thus high residential development in the list asking price. Those looking to buy a house need to act now to benefit from area are designed to meet demand. 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 A significant project commencing in the 1st closer to their first asking price, potentially due to an undersupply in the half of 2018 is the Ballinger Road Buderim market. Now is the perfect time for unit sellers to put their unit on the market. Gated Residential Development ($5.0M). This involves the rezoning of 80 lots of The rental market in Buderim continue to serve investors well, with the median ecologically sensitive gated residential rent price increasing by 8.7% to $560 per week for houses and 8.9% to $398 development. 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 A main commercial project is the Buderim time and seasoned investors need to consider Buderim in their portfolio. Market Place Woolworths Refurbishment SUNSHINE COAST REGIONAL GROWTH which is estimated at $1.2M. This project will involve the internal refurbishment of 2500 $700,000 the Woolworths supermarket within $600,000 Buderim Market Place Shopping Centre. 2000 $500,000 A total of 80 lots, 26 units, and 7 1500 $400,000 townhouses are planned for the Buderim area in the 1st half of 2018; split between 1 1000 $300,000 Median Price Median mixed-use and 4 residential projects. This Number of of Sales Number $200,000 will see more high quality stock entering 500 $100,000 the Buderim market in the near future.

0 $0 *Estimated values are based on construction value provided by Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 the relevant data authority and does not reflect commercial and/or re-sale value. Quoted construction and completion dates House Unit Vacant Land are estimate only, as per relevant data authority. Source: APM Pricefinder, realestate.com.au. © Copyright Median House Price Median Unit Price Median Land Price PRDnationwide 2018. AVERAGE VENDOR DISCOUNT AVERAGEAVERAGE VENDOR VENDOR DISCOUNT DISCOUNT AverageAverage vendorvendor discountdiscount reflectsreflects the the House Unit averageaverage percentagepercentage differencedifference between 0.0% betweenfirst listed firstprice list priceand andfinal finalsold soldprice . A price.lower Apercentage lower percentagedifference differencesuggests -1.0% (closerbuyers toare 0) willingsuggeststo buyerspurchase are close to - 2.0% - 2.1% - 2.3% - 2.3% - 2.7%

- 2.9% willingthe first to purchaseasking priceclose toof thea firstproperty . -2.0% - 3.0%

- 3.7% asking price of a property. - 4.0% - 4.1% - 4.4% -3.0% MARKET COMPARISON GRAPH - 6.0% -4.0% TheKEY market FACTS comparison UNIT graph provides comparative trend for median price of -5.0% house and units over the past 10 years. Suburbs profiled are chosen based on -6.0% proximity to the main suburb analysed in the factsheet, which is Buderim. The Change from Listing to to Listing Price Sale from Change -7.0% main suburb is highlighted through a Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 dotted black line graph.

HOUSE MARKET COMPARISON $700,000

$600,000

$500,000

$400,000 House House Price Median

$300,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Buderim Mountain Creek Kuluin

UNIT MARKET COMPARISON

$450,000

$400,000

$350,000

$300,000

House House Price Median $250,000

$200,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Buderim Mountain Creek Kuluin Maroochydore

Source: APM Pricefinder. © Copyright PRDnationwide 2018. AVERAGE DAYS ON MARKET

120 HOUSE KEY FACTS Q1 2018 100 Median Sale Price: $655,000 Annual Growth: 4.0%* 80 Average Days on Market: 69 % Change between First Listed Price and Sold Price: -2.3% 60

40

94 UNIT KEY FACTS Q1 2018 69 67 63 Average Days Market on Days Average 68 60 59 98 KEY FACTS UNIT* 57 56 Median Sale Price: $409,500 54 20 40 Median Sale Price : $785,000 Annual Growth: 2.5%* Annual Area Growth: 11% Average Days on Market: 94 Average Days on Market: 36 0 % Change between First Listed % Change between First Listed Price and Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Price and Sold Price: -3.7% Sold Price: -0.1% House Unit Overall Market Trend

SALES AND MEDIAN PRICE

180 $700,000

160 $600,000

140 $500,000 120

100 $400,000 Median Price Median Number of of Sales Number 80 160 152 157 $300,000 141 133 60 118 $200,000 40 65 67 62 56 50 $100,000 20 45

0 $0 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

House Sales Unit Sales Median House Price Median Unit 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. SALES PRICE POINT COMPARATIVE ANALYSIS

HOUSE PRICE POINT 2016 HOUSE PRICE POINT 2017 3.6% 5.1% 1.4% 0.5%

10.4% 9.3% 16.1% 6.1% Less than $399,999 4.8% $400,000 to $499,999 12.1% $500,000 to $599,999 11.4% 24.9% $600,000 to $699,999 $700,000 to $799,999 $800,000 to $899,999 31.6% $900,000 to $999,999 13.8% 24.1% $1,000,000 and above 24.7%

UNIT PRICE POINT 2016 UNIT PRICE POINT 2017

8.1% 10.5% 10.1% 9.3% 5.2% Less than $299,999 8.4% 5.2% 14.3% 14.9% $300,000 to $349,999 $350,000 to $399,999 6.8% 10.5% $400,000 to $449,999 $450,000 to $499,999 $500,000 to $549,999 10.5% $550,000 to $599,999 22.4% 16.1% 29.4% $600,000 and above 18.1%

KEY IMPLICATIONS - HOUSE KEY IMPLICATIONS - UNIT The proportion of houses sold in 2017 remained in the The proportion of units sold in 2017 were mostly within $500K-$600K price bracket, which has decreased from the $350K-$400K price segment, which decreased from 31.6% in 2016 to 24.9% in 2017. Sales below this price 29.4% in 2016 to 22.4% in 2017. Apart from this, the unit bracket shrunk to 9.8% in 2017. First home buyers need market has not seen significant changes in the price to buy now to secure their dream property. structure. Affordable options are still accessible, approximately 9.3% of the market is under $300K. There has been an increase in the number of sales for all Investors with their fingers on the pulse need to act now upper priced brackets, reflective of the 4.0% median as this opportunity won’t last long. price growth over the past 12 months. Further, house sales in the $800K-$900K price bracket and those higher All price segments of unit sales $400K and above have than $1.0M have doubled. This suggests a move towards experienced slight increases in 2017, reflecting the 2.5% higher house prices, which is good news for sellers increase in median unit price during this period and looking to put their property on the market. signals demand in the higher priced bracket.

Source: APM Pricefinder. © Copyright PRDnationwide 2018. INVESTMENT ANALYSIS HOUSE KEY FACTS Q1 2018 Median Rent Price: $560 per week Rental Yield: 4.2% HOUSE UNIT Average Days on Market: 21 Bedroom Breakdown: 2 Bed: 5%, 3 Bed: 33%, 4+ Bed: 62%

2 Bedroom 1 Bedroom UNIT KEY FACTS Q1 2018 3 Bedroom 2 Bedroom Median Rent Price: $398 per week Rental Yield: 5.3% 4+ Bedroom 3+ Bedroom Average Days on Market: 23 Bedroom Breakdown: 1 Bed: 8%, 2 Bed: 44%, 3+ Bed: 48%

KEY COMMENTS OverviewThe 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.

MEDIAN RENT AND AVERAGE DAYS ON MARKET

140 600

120 500

100 400

80 300

60 119 122 123 112 111

Number of of Number Rentals 107 200 40 77 75 68 69 70 56

100 Market on Days / Rent ($) Average Median 20

0 0 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

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

Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2018. RENTAL PERFORMANCE 2017* KEY COMMENTS Median House Rent P/W Annual Change Rental returns in Buderim are currently at 4.2% (houses) and 5.3% (units), which is $700 7.0% on par with that of Sunshine Coast Main (4.6% and 5.1% respectively). 4.3% 6.0% $600 5.0% Four+ bedroom houses provide the highest annual rental growth at 4.3%. -2.1% 4.0% $500 2.0% 3.0% Buderim’s vacancy rate was recorded at 1.5% in December 2017, lower than the $400 2.0% Sunshine Coast Main (1.7%) and $575 1.0% significantly lower than Brisbane Metro $300 $470 0.0% (3.7%). This suggests a healthier rental demand in Buderim. Further, Buderim’s $378 -1.0% $200 vacancy rate has declined by 0.9% over -2.0% the past 12 months whilst Brisbane Metro’s has increased, confirming it as an $100 -3.0% investment hotbed. Two Bedrooms Three Bedrooms Four + Bedrooms

VACANCY RATES 2017 RENTAL YIELD 2017 5.0% Suburb/ House Unit Postcode/ Rental Rental 4.0% LGA Yield Yield

3.0% Buderim (Postcode 4.2% 5.3% 2.0% 4556)

1.0% Sunshine Coast Main 4.6% 5.1%

0.0% 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

Brisbane Metro 3.8% 5.0% 4556 Sunshine Coast Main Brisbane Metro

KEY HOUSING DEMOGRAPHICS

Buderim Sunshine Coast LGA

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%

*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. PROJECT DEVELOPMENT MAP 1st HALF 2018*

10.0% 18.0%

72.0%

Commercial Residential Mixed Use

Estimated Location Project** Type Commence Date**** Value***

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

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

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

*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. ABOUT PRDnationwide RESEARCH PRDnationwide’s research division provides reliable, unbiased, and authoritative property research and consultancy to clients in metro and regional locations across Australia

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