Maroubra Property Watch Q2 2014
Maroubra has a diverse range of property types ranging from compact apartments to full sized family homes which provides opportunities at all ends of the market. This Property Watch report will aim to further highlight the regions characteristics, analyse the market and forecast the future trends of the Maroubra market.
Units dominate the Maroubra market due to demographics in the region and an influx of new unit developments that have occurred in the region. In the annual period to January 2014 the market recorded 374 sales which is in line with historic levels. Median prices have risen 2.4 per cent over the past 12 months and 1.8 pre cent per annum over the past 10 years which reasonable however new stock has kept pricing competitive particularly at top end of the market.
Houses are the strongest dwelling type in Maroubra due to limited availability. Over the past year only 100 sales were recorded. In that same period median prices grew 13.4 per cent. Over a 10 year period to January sales growth has been more stable at 1.4 per cent per annum while median prices have grown a respectable 3.3 per cent per annum. Moving forward steady and stable growth is predicted for all dwelling types.
The Maroubra price point chart indicates the shifts in unit prices across the area over the past five years. Overall there is a trend towards the higher end of the market as affordable stock has been snapped up by savvy investors and first homebuyers. The amenities and lifestyle that Maroubra offers has made the region extremely popular in recent years particularly with high income earners pushing price points higher.
The price point that dropped the most in activity is the $350,000 to $449,999 range which dropped a remarkable 41 per cent since 2009 while the $450,000 to $550,000 range recorded a decline of 9 per cent. This is due to small apartments increasing in popularity.
At the $650,000 plus range the market has been bullish since 2009. The price point that has increased the most is the $650,000 to $749,999 range which over the five years has grown a remarkable 20 per cent. The highest end of the market has also reported growth however at a lower rate.
The metro Maroubra rental market has recorded reasonable growth recently. At the close of the December 2013 rental period, median unit and house rents had registered average weekly return of $763 per week which represents an increase of 12 per cent over the previous year and a healthy 22 per cent since 2009. Currently average yield sits at 4.41 per cent. Rental growth can be tracked back to strong demand from a high portion of tenants. As at 2011 the suburb consisted of 40 per cent renters which is expected to increase in the future.
The strongest performer in the rental market was the two bedroom market which rose was closely followed by one bedrooms which rose 25 per cent per cent. The growth in rental income in smaller dwellings can be attributed to a shift in tenant demographics. Other markets experienced growth of around 20 per cent.
Maroubra is already a well established suburb however there is continual investment in infrastructure and new residential dwellings which should see continual growth moving forward. Currently there is approximately $200 million worth of development in the pipeline with the majority of development dedicated to public infrastructure and aged care.
Highlights include upgrades to local recreational facility, Heffron Park, which features a planned $19 million South Sydney Rugby League Club. The ageing population is catered for with St Brigids Green which is a new $48 million facility with over 100 independent and assisted living apartments. A suitable level of residential development is also occurring the area with new unit and townhouses devolopment introducing reasonable amounts of new stock.