12:00a.m. 10th May 2008

Despite a cumulative series of blows to the Queensland property market, Sunshine Coast real estate agents are convinced the local market remains buoyant with a good level of inquiries.

Statewide in the March quarter, building approvals dropped and house prices fell 2%, and property listings increased by 25% on last year.

However, property analyst Michael Matusik said it was not “doom and gloom” despite the housing figures being down 16% for the quarter.

Rather, it was just the fluctuating nature of the business.

“An early Easter and wet weather in north Queensland at the start of the year helped keep new building activity subdued this March,” he said.

While Mr Matusik predicts prices will not increase by more than 8% this year, he believes the key ingredients for continued growth remain strong.

“Some commentators are claiming that the residential property market has come to a screaming halt, but there still remains some price growth,” he said.

Kevin Annetts, partner at Ray White Mooloolaba, said the market would remain “steady as she goes” over the next few months.

“Our market is strong and our demand is strong,” he said. “We sold a property last weekend at auction to a gentleman who inspected the property half an hour prior to the auction and bought it under the hammer.

“There are a lot of stories out there about buyers seeing good potential. Things are basically the same for us. Our inquiry is still strong, our open-for-inspection numbers are strong and so is our inquiry off signage.”

The buyer Mr Annetts mentioned was Buderim investor Pim Stort.

He looked at a Maroochydore property for less than five minutes before deciding to bid.

It might appear impulsive, but he had been searching for some time before finding the right property.

“I had spent many months, probably four or five months, looking at houses to renovate so I was very familiar with the area and the prices and was obviously looking to make a purchase,” he said. “I saw it in the Property Week. It was in the right area and was exactly what I was looking for.”

Mr Stort placed the winning bid for the three-bedroom, two bathroom house, which he will renovate and use as an investment property. He said he didn’t consider buying outside the area.

“I’m buying purely to renovate so I need something close to home,” he said. “I know there is strong capital growth and strong demand on the Sunshine Coast due to the population influx, and it’s always going to be popular.”

PRD Nationwide Maroochydore director Syd Walker said interest-rate rises this year had caused difficulty for people looking to sell, but had not affected prices.

“When the February interest-rate hike was announced, people started to take a step back and then when the March interest rate hit, the lights went out and the market almost stopped dead,” Mr Walker said.