Nambour Quarterly Market Report

NAMBOUR QUARTERLY MARKET REPORT 3rd QTR | 2022

HELPING YOU MAKE BETTER PROPERTY DECISIONS The pandemic may not be over but it’s hard to find bad news in the Australian property market right now. Our GDP is back to where it was prior to the pandemic and is predicted to grow by 4.1% in 2022 and 3% in 2023. The Australian Bureau of Statistics has said that our unemployment rate has dropped to the lowest point in more than 13 years with the unemployment rate at 4.2% in December from previously reported 4.6% in November.

Reserve bank murmurings of rate increases are definitely factoring in to the decision making for larger investors, but seem to be more than offset by record home equity growth for those in the sub-$3 million price range.

EMILY PENDLETON 0402 435 446

ASSOCIATE DIRECTOR emily.pendleton@raywhite.com

Sunshine Coast Level 1 172 Brisbane Road Mooloolaba

The property market finished a strong 2021 with some outstanding results. The surge of buyers from the southern states to Queensland, in particular the Sunshine Coast means that we are still in short supply. The white-hot Sunshine Coast residential market will continue to fast track the expansion into the more affordable fringe areas such as Nambour, Yandina and even Gympie, giving developers the confidence to invest deeper into these formerly volatile markets.

Despite a number of properties coming on the market in the last quarter of 2021 the supply still cannot keep up with the demand. We have seen our enquiry numbers increase by 28% across the Sunshine Coast region with an average of 102 enquiries and 41 inspections per week across our group. Even when this hot housing construction trend begins to slow nationally, we expect SEQ and the Northern Corridor in particular to be affected last and least.

Moreton Bay Unit 3 125 Morayfield Road Morayfield

Pine Rivers Level 1 104 Gympie Road Strathpine

ACROSS THE NORTHERN CORRIDOR

18%

24% Enquiry Last Quarter

16%

LAST QUARTER

THIS QUARTER

1466

1224

471

492

enquiry

enquiry

inspections

inspections

369

383

offers

offers

9%

33%

51

55

$51,551,301

$55,654,915

sold

19%

19%

sold value

Enquiry This Quarter

sold value

11%

9% 42%

Retail Office Retail/Office

sold

Industrial Tenanted Investment

62

70

leased

leased

$3,443,052

$2,992,930

leased value

leased value

IN THE KNOW |

AGENT INSIGHTS NAMBOUR The Nambour commercial property market has been one of the greatest and most unexpected beneficiaries of COVID and the current Sunshine Coast property boom. While many had earmarked Nambour as a future potential source of opportunity, few expected the transition to occur so quickly. To better understand this market, we have identified the following key drivers:

GROWTH

The catalyst for growth in Nambour has still been around the affordability of properties. Although, the medical house price has risen to $547K, up 28.8% annually from this quarter in 2020. Nambour is still one of the most affordable suburbs to buy a home on the Sunshine Coast. As the suburbs that are close to the beach are getting more expensive, people are moving to areas like Nambour, Yandina, and Rosemount to find bigger land parcels and better value for property. Interstate buyers are still seeing Nambour as a very central suburb offering CBD facilities and still being only 20 minutes to the beach.

VACANCY RATES

Nambour, like all Sunshine Coast suburbs, has a chronic shortage of rental housing and accommodation and this hasn't improved since last quarter. The vacancy rates are less than 1% making it very difficult for anyone to secure a residential rental. The vacancy rates in commercial are also in short supply with a number of the larger shops in the center of town now being snapped up by health and wellness businesses which seem to be where most of the enquiry is coming from.

DEMOGRAPHIC SHIFT

The types of businesses in Nambour have really changed over the past quarter.

We have done a number of leases to gyms, allied health services, breweries, food and beverage outlets and personal services which are all flocking to Nambour due to the shift in demographic. The prices of houses have gone up which inturn is bringing more families and interstate buyers to the area who are needing access to more services.

INVESTOR CONFIDENCE

BUSINESS CONFIDENCE

The returns in Nambour have tightened again with the average yield between 6-5% last quarter and this quarter 5.5% - 6%.

Improved demographics and increased State and Federal incentivisation for new business and employment has seen the demand for commercial premises increase considerably. We have seen particular interest from the live music, entertainment and health and fitness sectors wishing to capitalise on both the cheaper rents and the influx of the younger demographic that now call Nambour home.

NAMBOUR QUARTERLY REPORT

AGENT UPDATE

No one is in a better position to truly understand the current market trends and how they impact your specific property. Here are the key insights from your team of local area experts that you should know:

"Those of us that grew up on the Sunshine Coast may be the last ones to drop our old attitudes about suburbs we’ve always known, but we really should.

SUPPLY

DEMAND

14

81

currently for sale

sale enquiry

34

18

currently for lease

lease enquiry

NAMBOUR SALES

Take a drive with fresh eyes through the central streets of Nambour and you will see vibrant businesses breathing new life into strong-boned traditional bricks and mortar buildings as they service a rapidly shifting, youthful demographic."

- Emily Pendleton

ADDRESS

TYPE

PRICE

YIELD

78-84 Currie Street

Tenanted Investment

$1,794,500

4.6%

6-22 Currie Street

Tenanted Investment

$1,250,000

8.1%

$330,000

N/A

Tenanted Investment

$2,200,000

7.5%

Vacant

$2,245,000

N/A

30 Mill Lane

Tenanted Investment $5,300,000

3.7%

52-64 Currie Street

Tenanted Investment

12/27 Coronation Avenue 220 Petrie Creek Road 8 Court Road

181 Currie Street

Vacant

Vacant Tenanted Investment

24 Lowe Street

$10,375000

6.2%

$875,000

N/A

$1,200,000

4.3%

NAMBOUR LEASES ADDRESS

TYPE

PRICE

8/103-105 Currie Street

Retail

$270/m2

3/2 Nambour-Mapleton Road 2IILFH 5HWDLO 1DWLRQDO 3DUN 5RDG 3ULFH 6WUHHW 54-56 Blackall Terrace

6KRZURRP 5HWDLO

$ /m2 $293/m2

,QGXVWULDO

$209/m2

Office

$223/m2

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6-22 Currie Street, Nambour

78-84 Currie Street, Nambour

SOLD | $1,250,000 | 8.1%

SOLD | $1,794,500 | 4.6%

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12/27 Coronation Avenue, Nambour

54-56 Blackall Terrace, Nambour LEASED | $35,000 P/A Net + Outgoings + GST

LEASED | $15,840 P/A Gross + GST

Peter Gonthier

Sevvy Serino

Emily has been prompt and efficient and has great communication skills.

Very easy to talk to Emily. Very loyal agent. Competent and ready to work for results.

Andrew Mumford

Paul Church

Emily beat the odds due to her diligence and professionalism.

We also asked her to do a few things above and beyond as we were located out of state. She did them all, on time and professionally. Her performance impresses both the buying and selling parties. It helps bring deals over the line because both parties trust the agent. Also, as a lawyer I could quickly gauge whether her knowledge was up to scratch and it was. I can recommend Emily to sell your property whatever the market.

Really pleased with the work by Emily Pendleton to sell the commercial property. Her enthusiasm and knowledge are appreciated. Emily advised and handled the advertising of the property with expertise which made it easier to find a purchaser who would be good for the tenants and ownership of the Nambour property. Thank you to Emily and the Team, who are highly recommended.

Emily has spent the majority of her career focussing on leasing properties in Nambour and working with owners to improve their tenants and leasing rates.

Her belief in Nambour has never waivered over the years and is now reaped the rewards of her persistence over this time in achieving an excess of $19,500,000 in sales in Nambour in the last 12 months.

Emily Pendleton

| M 0402 435 446

|

E emily.pendleton@raywhite.com IN THE KNOW |

WHY CHOOSE THE NORTHERN CORRIDOR GROUP?

RANGE

SIZE

EXPERIENCE

Northern Corridor Group have the largest commercial pre sence between North Brisbane and the Sunshine Coast allowing us to source your next potential tenant from a vast and considerable database.

We invest in new technologies and we centralise our systems to provide consistency and efficiency across the group. This ensures our teams are innovative and adopt best practices in changing markets to deliver a consistent and quality service to our owners and tenants.

The Northern Corridor Group rank 2nd Australia wide in the Ray White Commercial Group. We employ the best and our team has over a 100+ years of combined commercial real estate experience. They are driven, highly skilled, professional agents, property managers and administration staff who are passionate about achieving their goals.

LOCAL KNOWLEDGE

Our team of dedicated property management professionals are your area experts with a wealth of local knowledge.

They are all local residents and are active within the community.

ONE ELITE TEAM - FOUR LOCATIONS

Office lease listings have seen an increase. However, enquiry levels have plateaued. The likely cause of this is many businesses have seen the viability of working from home and are no longer seeking to operate a solely office based workplace. This will not be the case for all businesses but the impact of a number of businesses taking this approach will be felt across the industry.

Largest commercial presence between North Brisbane – Sunshine Coast

Sunshine Coast Level 1 172 Brisbane Road Mooloolaba

No.2 Commercial Office in Ray White Internationally

Moreton Bay Unit 3 125 Morayfield Road Morayfield

Property Management Unit 9 113-137 Morayfield Road Morayfield

Pine Rivers Unit 4 257 Leitchs Road Brendale IN THE KNOW

Sunshine Coast Level 1 172 Brisbane Road Mooloolaba

Moreton Bay Unit 3 125 Morayfield Road Morayfield

Property Management Unit 9 113-137 Morayfield Road Morayfield

Pine Rivers Unit 4 257 Leitchs Road Brendale