Property News

Waterfront property recession proof

11 October 2006

Queensland waterfront property is recession-proof, and changes to superannuation laws and the rise in the number of baby boomers and retirees choosing to live in areas like the Sunshine Coast will continue to fuel strong growth for prestige waterfront property, according to property analyst Michael Matusik.

"Our research indicates that the value of waterfront property in prime locations has grown more than twice as fast as other residential real estate. Our studies have also found that waterfront property has been more resistant to a downturn in a residential cycle," Mr Matusik said.

Examples across South East Queensland show that waterfront land rose by 29.9% in value over the past 12 months compared to land situated off the water which rose by just 4% between 2005 and 2006, according to Mr Matusik.

Also driving demand for residential waterfront property was the rapid growth in the demand for boats and the need for boat moorings.

"Boat registrations have increased by an average of 6% per annum over the last ten years to the point where there are over 200,000 registered boats in Queensland and nearly half of these purchasers are over 50 years of age. Across the Sunshine Coast there are just under 16,000 registered boats, a number which represents a doubling in just eight years," Mr Matusik said.

"Marinas are also in great demand with a survey earlier this year of 48 marinas across Queensland by the Boating Industry Association of Queensland found 1600 on waiting lists wanting to secure a berth," he said.

Another key factor for coastal regions is interstate migration driven by 'lifestyle' oriented purchasers who are predominantly in their 50s and 60s.

"Over the past five years about 600 of these 'lifestyle' purchasers moved to the Sunshine Coast each year, and this influx is expected to increase by 25% to 800 such households per annum until 2011," Mr Matusik said.

"A recent survey by Mortgage Choice also found that 34% of the 650 baby boomers interviewed across Australia indicated that they were planning to purchase an investment property in Queensland in the next twelve months," he said.

Mr Matusik said he was confident the Sunshine Coast property market would continue to remain resilient in the foreseeable future.

"The market fundamentals for the Sunshine Coast are very strong. Supply isn't outstripping demand, some long overdue infrastructure requirements including the new regional public hospital will commence soon and the influx of cashed up lifestyle seekers who are able to access their tax free super funds to purchase property will ensure the market remains positive," he said.