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Pelican Waters Real Estate Market Report 2017

Pelican Waters Real Estate Market Report 2017

By Luke Carter - Business Owner Harcourts Caloundra

 

Pelican Waters has seen a resurgence in property prices during 2017, which is great news for home owners in the suburb of Pelican Waters. This property growth comes off the back of significant real property growth in the wider Caloundra region, with real estate prices in Pelican Waters and Golden Beach now on par with their pre-GFC price peak. If historic patterns provide a window into the future, one thing is for certain with all asset markets, is that after a significant period of price correction, they always moved past their pre-correction price levels creating a new benchmark.

 

This is proving to be the case across Caloundra and most certainly in Pelican Waters and Golden Beach. On 28 occasions in 2017 our team have negotiated a property sale for our vendors that has set a new street record for residential property sales and on two occasions set a suburb record. This is a clear indication of real property growth coming from the coal face. Another future growth indicator is the current rental vacancy rate across our 450-property rent roll which currently sits at less than 0.5%, this is unheard of even during the strong market of 2004 to 2008. A significant number of the record real estate prices achieved by our team at Harcourts Caloundra have been set in the Pelican Waters and Golden Beach area, with a more than 50% of our current buyer enquiry coming from the wider Brisbane area or south of the boarder in NSW and Victoria. With the Sydney and Melbourne markets slowing from their peaks of late 2016 and early 2017, southern buyers are looking to South East Queensland where a huge number of significant infrastructure projects are driving job growth, which is flowing through to property demand placing upward pressure on prices. With the current Brisbane median house price sitting at $490,000 compared to Sydney at $905,000 and Melbourne at $710,000 (Corelogic November 2017). South East Queensland represents the country’s best real estate value and also has some of the country’s highest residential real estate yields.  Therefore based on the current vacancy rate and the looming lack of future new housing supply across the region, rental yields will only increase over the coming 12 months and into the future.

 

Pelican Waters had a significant amount of property transactions during 2017, however the volume of real estate sales in the suburb is well below those of 2016. With 227 real estate transactions in Pelican Waters so far this year as of 10th November, compared to 350 property sales over the same period during 2016. This shows a legitimate decrease in the volume of sales of 35% and it is this reduction in supply that will place definite upward pressure on property prices over the coming 12 months within the Pelican Waters area.

 

The market of any suburb is driven by the top end, which creates a ceiling in property pricing which all other real estate in the area is measured on. There has been a staggering 28 sales above the $1,000,000 mark and five sales above the $1,500,000 mark so far this year in Pelican Waters. This sounds impressive, however once again when compared to the volume during the same period of 2016 we see a significant drop in the volume of real estate transactions in the top end of the Pelican Waters real estate market. During the same period of 2016, we saw a whopping 35 real estate transactions above the one-million-dollar mark. This data shows a decrease in sales volume above the million-dollar price point of 20% in Pelican Waters.

 

With the supply of property retracting we can only foresee a continued reduction in the volume of real estate transaction with in the Pelican Waters estate moving forward though out the remainder of 2017 and through 2018.  This increasing lack of volume will, without doubt put upward pressure on property prices. The only saving grace for those looking to buy real estate in Pelican Waters is the large amount of land due to be released over the coming 12 months. There is a significant amount of ocean access home sites due for release during 2018 and even more dry home sites ready to come to the market. Another proposed subdivision of some 200 homesites is also looming with a second developer looking to capitalise on the strength of the Pelican Waters market with a significant land project. If this proposed land comes to fruition it should put the brakes on property prices with many home buyers having the option to buy land and build over purchasing existing established stock.

 

Overall the outlook for property prices and residential real estate yields with in the suburb of Pelican Waters looks extremely positive, with interest rates remaining low and the estate nearing completion there is plenty of opportunity within the real estate market in Pelican Waters.

 

Should you be considering investing into the Pelican Waters or Golden Beach property market and require more information please feel free to contact our team at Harcourts Caloundra. Alternatively If you are a property owner in Pelican Waters or the wider Caloundra region and you are wanting to know more about the market and pricing specific to your property and suburb please contact us and we will provide you with a detailed market appraisal relating specifically to your property.