Approximately 95km north of Brisbane, overlooking Queensland’s Sunshine Coast is a suburb that has consistently appeared in searches for viable investment locations. In fact in 2012, this suburb topped the list of the most searched suburbs in Queensland.
We are talking about Buderim,
With a land area of about 648 sq.km, Buderim is a large and diverse suburb with property various styles, age and price brackets, starting from the mid $300Ks right up to the $2.5 million mark.
One of the major reasons for the suburb’s appeal to investors is because of its proximity to the water, beautiful forest and Brisbane. It’s reputable schools—both primary and high school, public and private. The Sunshine Coast University is also a major drawcard and the sheer number of retirement villages demonstrates it’s popularity with retirees seeking the seachange and tree change!
In this suburb review we’ll take a quick look at the demographics of Buderim, its facilities and infrastructure projects, as well as present a case study on one of the properties in the area.
The Demographics
Population
According to the census data of 2011, Buderim population is 27,069. The majority of people residing in Buderim were in the 40-59 age bracket (29%), followed by those aged 0-19 years (26%). Median age was 43 years old.
Dissecting the demographics furthermore, below are some points to consider about the family composition, occupation, and dwellings in Buderim:
- More than half of people in Buderim aged 15 and above were married whilst around 25% were single.
- There’s a slight difference in the number of couple families with children and those who have no children
- Most common residents of the area (after Australians) were from the UK, New Zealand, and South Africa
- Most people work as professionals, followed by clerical and admin workers
- Top industries of employment were school education, cafes and restaurants, and horpitals
- Housing— most properties were standalone houses with 4+ bedrooms
- Around 22% of properties are being rented
The Numbers
Capital growth through the Sunshine Coast area since the global financial crisis of 2007-2008 has not been fantastic. Areas like the Sunshine Coast have been reliant on small business, retail, tourism and building – but all of these areas have suffered and it’s been slow going on the coast during this time. Buderim is one of a handful of areas that has shown relatively stable and even positive growth during this time and as the property market and general economic situation has improved over the past 12 months, so too has the growth in Buderim.
Facilities
Schools and Colleges
We mentioned earlier that one of the biggest positives of Buderim is its reputation as a centre of many reputable educational facilities and schools—both private and public, from kindergarten through to university. Some of its famous schools are: Buderim Mountain State school, Chancellor State College. Meanwhile, Kuluin and Mooloolaba State School are a few minutes drive away from Buderim.
Cooloola Sunshine Institute of Tafe and the University of Sunshine Coast in Sippy Downs are approximately 5 kilometres away from Buderim.
Healthcare and Aged Care
The closest public hospital to Buderim is Nambour General Hospital, which is the largest public hospital servicing the entire Sunshine Coast—as of now. Come 2016, however, the new Sunshine Coast University Hospital is scheduled to open with 450 beds and is expected to be 700+ beds by 2021.
Shopping and Entertainment
Buderim has a number of shopping facilities, including a supermarket (Woolworths) on the main street. A major shopping centre can be found in the nearby Maroochydore (Sunshine Plaza), which is just 7-8 kilometre drive from Buderim.
Buderim residents will soon be spoiled for choices when it comes to entertainment and shopping once the Maroochydore City Centre development comes in full swing. There will be regional arts centre, a transit plaza, an ampitheatre, an urban open space, 65,000 sqm retail space, plus new dwellings within the principal activity centre. All of these will just be 10 minutes away from Buderim.
Infrastructure Projects
Buderim, like the suburbs of Kawana Waters, Mooloolaba, Mountain Creek, and other surrounding suburbs will definitely benefit from the Sunshine Coast Airport expansion project. Expected to be completed in 2020, the multi-million dollar project is said to provide thousands of new permanent jobs upon its completion.
The Property
Being such a large suburb there are many different areas within Buderim. Housing styles are old and new, with areas of 70s style highset weatherboard homes to low set brick and tile of the 80s, 90s and 2000s right through to contemporary modern architecturally designed hilltop homes. There are smaller residential blocks and then areas with acreage. We will look at a couple of examples with our case study properties.
Pros
- Proximity to beach and hinterland
- Direct links to Brisbane
- A central spot for most of the Sunshine Coast
- Green environment
- Good services and facilities
- Educational facilities – university, private and public schools
- Easy access to major healthcare facilities
Cons
- Large suburb with a large range of property styles, age of property and pricing – so really need to understand what it is you are looking for or you will get lost in it!
The Case Study
Having recently searched for several properties in this area for clients, the thing that really sticks out is the variance in styles and pricing of the property in Buderim. It really does consist of a number of smaller pockets, so if you are looking to purchase here then it’s worth the time and effort, if doing it yourself, to get to know Buderim well. Take a drive, look around, inspect lots of houses in different areas to get to know and understand the sub-areas and the associated pricing brackets.
For our case studies today we have a basic property at the lower end of the market. This is the sort of investment I’d suggest could do well here. The higher end of the market may not be able to show the sort of yield that make it attractive and the higher end of the market is slower to sell if you need to and more sensitive to fluctuations in market prices.
This property is a 4 bedroom, 2 bathroom property with double garage on 707m2. It is in original condition but is very tidy and has good backyard space. It’s a short drive to Mooloolaba, Maroochydore, to the Sunshine Coast University and to Kawana.
Expected pricing to purchase this property is $425k – $440k. Automated valuation with two different data providers value this property around the $455k-$463k mark. Expected rental is $480 – $500. For the average investor paying 38% tax, this property would cost in the vicinity of $42 per week to hold but also has some capacity to improve the value and the yield with some cosmetic updates.
Summary
Buderim has been a consistent performer for the Sunshine Coast in a market that has been tough over recent years. The last 12 months has seen Buderim really pick up and move and investors are seeing this area as an attractive option for investment. Buderim really is well placed to access major healthcare, shopping and transport facilities and services in close by areas as well as having a stronghold on quality education for the region with a number of private and public schools as well as the major university on the coast.
If you are looking to invest on the Sunshine Coast then Buderim is well worth your time to consider as your target location.
Want more information about investing in the Sunshine Coast? Contact Property Zest Buyer’s Agency.