SunshineCoastRegionalReport2ndQtr2004

   DWELLING INVESTMENT
   OVERVIEW



  DWELLING INVESTMENT OVERVIEW

    Residential building activity in the Sunshine Coast Region weakened in the June Quarter 2004, with both
   the number and value of dwelling approvals recording negative growth. In both quarterly and annual terms
     the number of new houses approved fell significantly in Maroochy Shire and Caloundra City, although
                                          were higher in the Noosa Shire.

    Looking ahead, the Sunshine Coast’s property market is expected to contract, with weakening demand and
     an expected increase in the RBA’s official interest rates driving a slump in residential building activity.

                                                            Building Approvals Statistics
                             Sunshine Coast Region           Caloundra City                Maroochy Shire                                 Noosa Shire
                             Level % chg on % chg on Level % chg on % chg on            Level % chg on % chg on                      Level % chg on % chg on
                            Jun-04   Mar-04     Jun-03 Jun-04    Mar-04     Jun-03 Jun-04 Mar-04          Jun-03                    Jun-04 Mar-04     Jun-03
Number
Dwellings                      1,049            -20.4            -16.7      339          -41.6    -12.6      575     -3.7   -19.8      135      -4.3        -12.3
 New Houses                      648            -23.0            -17.0      195          -50.8    -38.5      318     -6.5   -12.2      135      27.4         32.4
 Other Dwellings                 401            -15.8            -15.4      144          -21.7    111.8      257      0.0   -27.4        0    -100.0       -100.0

Value                      ($’000)                                       ($’000)                          ($’000)                   ($’000)
Dwellings                  292,988               -3.0             23.6    88,281         -29.3     23.2   160,858    23.9   26.7     43,849     -7.7         14.0
 New Houses                156,734              -11.2             11.7    41,229         -45.3    -23.4    71,656     0.5   15.4     43,849     46.5         79.8
 Other Dwellings           121,906               16.3             53.5    41,113          -3.8    236.2    80,793    56.1   38.0          0   -100.0       -100.0
 Alterations  &             14,349              -31.0            -17.4     5,940         -11.4      5.3     8,409    23.4   33.0          0   -100.0       -100.0
Adds
Non-Dwelling                 25,126             -42.5            -69.0     7,887         -75.9    -47.4    17,239   150.1   -65.4        0    -100.0       -100.0

Total Building             318,115                -8.0             0.0   96,169          -39.0     11.0   178,097    30.2    0.7    43,849     -14.9            -19.6

Source: ABS 8731.3



     Positive price growth in median weekly rents were recorded for all rental flat and house groupings on the
       Sunshine Coast in the year to the June Quarter 2004. Each flat and house classification increased in
                         annual terms, indicating growing returns for residential investors.
                                                                           Median Weekly Rents
                                                 Sunshine Coast     Caloundra          Maroochy           Noosa         Nambour
                                                Rents ($)    ann Rents ($)      ann Rents ($)   ann Rents ($)   ann Rents ($)   ann
                                                 Jun-04 % chg Jun-04 % chg Jun-04 % chg Jun-04 % chg Jun-04 % chg

                 1 Bedroom Flat                            150      15.4           160     28.0     145      11.5    160     6.7       130    13.0
                 2 Bedroom Flat                            200       8.1           200      8.1     190       2.7    220    22.2       155    10.7
                 3 Bedroom Flat                            250       8.7           235      4.4     250       8.7    280     3.7       180    16.1

                 2 Bedroom House                           220      15.8           210     10.5     220      22.2    220     2.3       200    14.3
                 3 Bedroom House                           260       8.3           260      4.0     250       4.2    250     8.7       245    16.7
                 4 Bedroom House                           300       7.1           310      6.9     300       7.1    280     3.7       260     4.0
                 Source: Residential Tenancies Authority




  ©0, Sunshine Coast Regional Economy, Second Quarter 2004                                                                                             - 23 -