February 2010 Community News Article - New Development

“Genius is one percent inspiration and ninety-nine percent perspiration.”
Thomas Edison

The Christmas holidays certainly proved to be busy as usual and we had plenty of visitors and guests looking at property and considering a holiday home of their own. It is sometimes the case that people expect the rental returns on a holiday property to be higher than what is realistically attainable and as we always say “if a holiday house by the beach paid for itself – everyone would have one.”

Overall, the Rainbow Beach property market remains steady with existing homes and units from $250,000 - $750,000 generally representing good value when compared to vacant land. Generally speaking, a “typical” three bedroom, two bathroom house within 10 minutes walk of the beach will sell for between $450,000 - $600,000 (this doesn’t include properties within 300 metres of the beach). Conversely, a block of vacant land with similar proximity to the beach might be worth anywhere from $300,000 - $400,000. With current building costs, the construction of a new home will generally cost between $250,000 and $350,000 (depending on materials utilised and the standard of fixtures and fittings). In saying that - many prospective buyers prefer the option of a “blank canvas” in order for them to make their own choice on design and layout.

Beyond Rainbow Beach and across the nation, media reports are pointing towards a recovery and even “mini booms” in certain property markets -particularly in metropolitan areas such as Melbourne and Brisbane. Often there is significant “lag time” for these trends to hit coastal and regional areas and this accounts for the sometimes considerably steep upturns and downturns that affect many beachside towns and rural areas over time.

Without trying to necessarily predict the future, we feel that the local property market is likely to experience a slow recovery throughout 2010 with prices having stabilised since the “lowlights” of the latter part of 2008 and the first half of 2009. Prices should firm up across all sectors but we are not likely to see significant value increases or strong demand for property until 2011/2012.

In terms of future development and new stock to the market, Rainbow Shores will see construction begin on the Bluewater Lodges in March this year. The site will have 36 three bedroom, two bathroom, single carport lodges within a complex which will incorporate a 20 metre lap pool, outdoor spa and professionally equipped gym. Stage One prices start from $465,000 with an average price of $495,000 – which is really a niche price point in the unit/townhouse market within Rainbow Beach. (At present, there are affordable units within both the Rainbow Shores and Getaway Resorts where you can purchase a one bedroom unit for less than $200,000, a two bedroom unit for less than $250,000 or a three bedroom unit for less than $300,000. At the other end of the scale are the Plantation, Rainbow Sea and Ocean Palms Resort where the entry level is closer to $800,000.)

Construction on the Bluewater Lodges complex will provide a boost to the local economy and many local businesses will benefit either directly or indirectly through the employment of local tradesman, or the opportunity to accommodate, entertain and cater for those that are working on the site.