The Kawana Waters beachside property value may well be undergoing a ‘coming of age’.
While other beachside areas to the north (Mooloolaba, Maroochydore and Alexandra Headland) and south (Caloundra and Dicky Beach) have long been the darlings of buyers seeking a strong investment or to move for lifestyle, the eastern beaches from Buddina to Wurtulla finally seem to be coming into their own as highly desirable addresses.
With many homes still tightly held by residents who moved to these eastern beaches in the early 1980s and ’90s, demand is far outstripping supply.
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Recent sales throughout the Kawana Waters beachside areas have shown healthy price tags:
- 227 Oceanic Drive, Bokarina (prestigious home built in 2023): $5.05m
- 604/25 Kombi Street, Bokarina (sixth-floor apartment in the yet-to-be-completed Oasis by Cube Developments): $3.7m
- 1 and 2/111 Pacific Boulevard (original duplexes constructed in the 1980s): $3.2m total, or $1.6m each
- 419 Oceanic Drive, Wurtulla (601sqm vacant block of land): $1.9m
- 28 Palkana Drive, Warana (home on 595sqm on corner of Nicklin Way in medium-density zone): $820,000
- 1 Coorabin Street, Warana (bought in December 2022, resold five months later, untouched, for $150,000 more): $1.3m
- 40 Baroona Street, Wurtulla (last sold July 2001 for $254,000): $1.18m
Ray White sales and marketing consultant Lachie Woods described the stretch as having a “dynamic year” in his market update, which was letterbox dropped in the area.
He reports that Wurtulla, with its blend of contemporary and established homes, has shown strong interest from families and lifestyle-seekers, “leading to median price stability”.
Bokarina, known for its blend of luxury and leisure, saw “an uptick in premium property transactions”.
The longer-established Warana and Buddina, meanwhile, “attracted a diverse cohort of buyers from first-home purchasers to seasoned investors buoyed by the suburb’s community feel and investment potential”.
“Despite a lot of negative media attention around the real estate market in light of economic pressures, in particular interest rate hikes, the market is proving resilient with strong buyer demand and some great sale prices,” Mr Woods told Sunshine Coast News.
“It’s still holding really strong and actually keeping really positive.
“Some key contributing factors to this would be that stock levels are maintaining low and in light of this, the buyer demand is strong.
“Given the size of the parcels of land that you can get through the eastern beaches pocket, and so close to the beach, offerings like this are getting rarer and rarer. Homeowners in the area and buyers coming into the area understand and appreciate this.
“Some 3000-4000 homes from Wurtulla to Buddina range from approximately 500sqm to 1000sqm blocks (excluding Bok Beach), and are only a few uninterrupted hundred metres to our beaches. The market appreciated the desirability.”
Mr Woods acknowledged a new Sunshine Coast Town Plan was expected in 2024 to assist in the need for more housing accommodation.
But while some sections of the eastern beaches strip have already been rezoned – to medium density through sections of Warana and high density through sections of Buddina – he believed new rulings around the flexibility of duplex development would see this market flood further for options.
Mr Woods said the area’s stock levels were still low, and demand for Kawana beachside properties remained high.
“Obviously interest rates will start to have an effect on the marketplace and there has to be a correction at some point,” he said.
“When it’s going to happen, we don’t know. What we do know is that it’s likely that we are nearing the top of this interest rate cycle.
“A lot of the time, there is an emotional connection between property owners and their property, whether it’s their home or their first investment property.
“This means people will make cuts where they need to, so they can continue to pay the mortgage. However, rate hikes will inevitably be too much for some, and they will have to let go and sell at some point.”
Research by realestate.com.au shows property inquiries hit a significant peak each year in January.
With the influx over holidaymakers over December-January, Mr Woods said he was expecting “some strong interest” over the coming Christmas-New Year period.
PREDICTIONS FOR 2024
Ray white chief economist Nerida Conisbee wrote in a recent Instagram post: “Australia’s housing market surprised us with resilient growth despite rising rates in 2023. In 2024, the shortage of homes persists, rates are climbing and luxury beach houses and green homes are in demand. Renters face stabilising rents, making life tricky.”
She told The Real Estate Conversation her top 10 predictions for 2024:
1. Price growth to continue.
2. Interest rates to peak but mortgage-holders need to “survive until 2025”.
3. Housing supply to continue as a policy focus.
4. Look out for beach house bargains over summer but you need to move quick.
5. Luxury apartment market to soar.
6. Homes to become even greener.
7. Rents to stabilise but tough times for renters to continue.
8. More people living alone.
9. Not enough rental properties/active investors.
10. Institutional investment in living sectors to accelerate.
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