The Sunshine Coast’s residential property price growth continues to outperform Brisbane and the Gold Coast, and it’s likely to continue the upward trend.
Property commentator Dr Nicola Powell, chief of research and economics at Domain, says “the extreme rate of price growth” on the Sunshine Coast will continue to deliver record prices in 2022.
“We have seen, particularly for house prices, back-to-back strong rates of quarterly growth,” she says.
“Over the March quarter we saw a nine per cent increase in house prices in three months alone, which is an extraordinary rate of growth.
“Then it continued with a five per cent growth over the June and September quarters.”
She expects to see another robust result for the December quarter.
“I would very surprised if we see a negative movement,” Dr Powell says.
One rider is the expectation that the pace of growth may start to ease. It’s already happening on the Gold Coast where she says its rate of price growth is slowing after peaking at 20 per cent “year-on-year”.
The Sunshine Coast’s pace of growth is the highest seen since about 2003 after experiencing only a modest price growth for several years.
“It hasn’t seen a double-digit uplift since 2007/8,” Dr Powell says.
The reasons for the price growth? She has four — being able to work from home, the increase in interstate migration, people looking to buy holiday homes due to the inability to travel overseas and value for money.
For investors, it’s the lure of capital growth and a strong rental market.
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There have been many winners in this market but for others affordability is a problem that won’t go away.
Buyers from the capital cities, particularly from south of the border where equity growth has also been extraordinary, are coming to the Coast with more purchasing power.
It’s that “bang for the buck” which she says is a major driver for interstate owner-occupier and investors.
While she thinks the Coast has seen the peak of the interstate migration, with borders opening and a push for international migration, particularly skilled workers, Dr Powell says there will be additional demand from this cohort on housing at possibly higher price points.
“The ability to work remotely, which I think will be part of our working culture moving forward, and for areas that offer lifestyle where you can walk from your home and have sand between your toes is really going to still be front of mind for buyers,” Dr Powell says.