Caboolture Area Property Watch Q3 2013

The following Property Watch report is the result of an investigation into the historic and current market trends of the Caboolture Area, which encompasses the suburbs of Bellmere, Caboolture, Caboolture South, Upper Caboolture, Morayfield and Narangba.

Between 2009 to 2011 sales activity for houses in the Caboolture Area house market decreased 49 per cent, to stabilise at an average of 482 settled sales per six month period. Unit transactions peaked during 2011 and have since declined by 51 per cent. The significant drop in activity within the Caboolture market has caused the median price for both houses and units to stagnate, and then decrease. Over the past 12 month period ending June 2013, the median house price declined by 2.1 per cent to $332,750, while the median unit price fell by 11.9 per cent to $275,000.

Similar to the dwelling markets in the region, activity for vacant land has contracted by 56.8 per cent over the past 12 months. However, since 2008 the median vacant land price has held firm at just below $200,000.

According to Cordells, who track development applications, there is approximately $241 million of proposed investment within the Caboolture Area. Of the total amount of projects in the pipeline, the majority are for civil engineering works. However, the two out of the three highest valued projects are for residential attached dwellings, with a combined projected value of $33 million. The recent addition of the Central Lakes Shopping Village has added to the high level of amenity that is already on offer to Cabooltures residents.

A price point analysis over the past year undertaken for the house market unveiled a modest decrease in buyer activity for property priced above $700,000, while houses sold between the $200,000 to $299,999 bracket have expanded. Due to sales activity remaining subdued within the local market, PRDnationwide expects activity for houses below $500,000 to expand, while activity above $500,000 could remain limited. The majority of unit stock that has transacted over the past five years did so within the $300,000 to $349,999 price bracket, with an average of 35 per cent of total sales.

A resale analysis was undertaken to ascertain the average annual returns received by investors who exited the Caboolture Area house and unit market over the past 20 years. By observing the Caboolture Area Average Capital Growth graph, the emergence of a unit market during mid-2000s becomes evident. Since this period, investors who sold unit stock realised similar, if not higher capital gains than investors who resold housing stock back into the market. During the peak of the market in 2004 houses recorded an average capital growth of 28.3 per cent per annum, while vendors who exited the unit market recorded 29.2 per cent per annum.

The majority of dwelling types within the Caboolture Area rental market have experienced slight increases to the median rent over the past three years, for the exception of three bedroom apartments, which have decreased and four bedroom houses which have held steady. Since 2011 the average vacancy rate within the 4510 post code has contracted down to 1.4 per cent, signifying a tight market.