It pays to live beside the seaside
IF YOU like to live beside the seaside, you'll be happy to know it also pays handsomely.
Three quarters of the top 10 suburbs for consistent capital growth in Queensland are by the beach, according to a new CoreLogic report.
Houses in Tewantin and Maroochydore on the Sunshine Coast all recorded double digit house price growth in the past year and around 40 per cent growth over the past five years.
Noosa Heads was the only suburb where double digit capital growth has been consistent for both units and houses over 12 months, three years and five years.
CoreLogic senior research analyst Cameron Kusher said people who had bought in one of those coastal suburbs in the past 12 to 24 months would be sitting pretty.
Mr Kusher said the latest statistics revealed interstate migrants were not just moving to Brisbane, they were also flocking to the Gold and Sunshine coasts.
"I think some people in Brisbane are tending to move to the coast as well," Mr Kusher said.
"Suburbs there are highly desirable and until recently haven't shown a lot of growth in values in the past decade.
"People are now starting to see value in them."
The working class suburb of Underwood took out the top spot for Queensland in the report on Australia's best-performing suburbs, with the Logan suburb's median house price climbing nearly 25 per cent in the past 12 months and more than 57 per cent in the past five years to sit at $601,345.
Mr Kusher admitted it was a bit surprising given the suburb's location, 17km from Brisbane's CBD, but it's affordability and access to the highway and Gold Coast made it attractive.
"But its median (house) price is now up over $600,000, so it's not really that cheap anymore," he said.
The suburb of Auchenflower also recorded strong capital growth of nearly 23 per cent in just the past 12 months to reach a median house price of more than $1 million.
Mr Kusher said Ashgrove, Toowong and Hawthorne had also performed strongly, reflecting demand for Brisbane's inner city suburbs.
The national report identified suburbs where the median value growth across 12 months, three years and five years had been higher than 18 per cent.
Across the state, eight suburbs were identified as having capital growth of more than 15 per cent in the past year, 44 suburbs achieved that growth over the past three years and 48 suburbs recorded value growth of more than 15 per cent in the past five years.
The question is whether these suburbs will continue to record consistent capital growth.
"With Sydney and Melbourne slowing, you might see more people looking to cash out of those markets and look to southeast Queensland," Mr Kusher said.
First home buyers Scott Johnstone and Sarah Major have been renting in Palm Beach since 2015, but recently bought a unit off-the-plan in a new development called The Jefferson.
"When Sarah and I decided to purchase our own home we had two pre-requisites - it needed to be in Palmy and it had to be by the beach," Mr Johnstone said.
"We thought we wouldn't be able to afford a brand new apartment so close to the beach for at least 15 years but we were able to secure a two bedroom, two bathroom apartment in The Jefferson and we are absolutely thrilled."
Tony Holland of McGrath Estate Agents said half of the apartments in the Lacey Group development had sold to buyers under the age of 45, reflecting a new wave of residents now calling Palm Beach home.
RiskWise Property Research chief executive Doron Peleg said lifestyle suburbs in coastal locations were outperforming other housing markets across the country, which explained the growing attraction of property on the Gold Coast and Sunshine Coast.
"That's part of a national trend we're seeing of beachside suburbs enjoying increasingly stronger demand," Mr Peleg said.
TOP PERFORMING SUBURBS IN QLD
Suburb Property type Median price 12 mth change 3 yr change 5 yr change
1. Underwood House $601,345 24.4% 30.9% 57.7%
2. Auchenflower House $1.1m 22.9% 18% 29.7%
3. Noosa Heads House $1.03m 21.3% 36.9% 57.2%
4. Palm Beach Unit $471,758 20.2% 34.6% 52.2%
5. Sunrise Beach Unit $507,521 19.4% 38% 46.1%
6. Noosa Heads Unit $789,150 18.3% 37% 44.7%
7. Tewantin House $577,942 16.2% 27.9% 39.4%
8. Ashgrove House $1.02m 15% 20% 49.4%
9. Maroochydore House $610,635 14.9% 31.3% 41.2%
10. Noosaville Unit $486,468 14.4% 22.4% 36.9%
11. Loganlea House $391,469 14.3% 23.8% 43.8%
12. Buddina House $768,715 14.2% 24.9% 43.1%
13. Reedy Creek House $774,948 14% 22.7% 47.7%
14. Toowong House $901,431 13.6% 15.5% 28.8%
15. Mudgeeraba Unit $399,637 13% 27.5% 37.8%
16. Tallai House $868,162 12.6% 24.5% 33.7%
17. Moggill House $573,618 12.6% 12.8% 32%
18. Varsity Lakes House $615,972 12.3% 23% 41.2%
19. Logan Village House $608,096 12.1% 18.9% 39%
20. Tugun House $659,733 12% 35.4% 50.2%