Effect of Caloundra South/Aura development on local prices?

Discussion in 'Where to Buy' started by Bran, 13th Jan, 2016.

Join Australia's most dynamic and respected property investment community
  1. Bran

    Bran Well-Known Member

    20th Jun, 2015
    At work
    Hi guys

    Stocklands are delivering 20,000 homes into Caloundra South in a city named 'Aura'. It sounds like it will be a massive expansion with associated infrastructure and business.

    What effect do you think this might have on the beachside suburbs? One downside of the Aura development is its inaccessibility to the beach, it looks like one will have to travel out and up to Caloundra to get to the beach.

    Will the beachside streets hold their own in the face of increased supply? There has been a fairly steady increase in prices since the crash.

    More specifically, the Caloundra town plan has labelled certain (fairly large) areas as 'protected housing areas', detailing that development is inconsistent with the plan (i.e. no subdivision or duplexes...). Ive been looking in one such area and have been offered off-market a good size corner block close to the beach and amenities. His asking price was based on a misunderstanding of the zoning, and he was crestfallen when I provided the new city plan and told him that subdivision was not possible, making it a purely buy and hold play - hence my concern with nearby supply.

    One possibility is that an increased population will increase the popularity of local beaches, aid in their gentrification and ultimately hasten capital growth, but this is a little speculative. What do you guys think?

    Does the lack of development potential in the greater suburb improve or limit chances of capital gains?