The Sunshine Coast property market is expected to be re-energised by a rise in consumer sentiment.
With inflation coming down and possible cuts to interest rates ahead, buyers could become more active.
But high demand and low supply should keep property prices high.
PropTrack data shows home values in the region have slowed in recent months, and they are 5 per cent lower than their peak in April 2022.
But prices are still 61 per cent higher than they were in March 2020 – when the housing boom took off amid the pandemic – and they’re 5 per cent higher than they were a year ago.
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“We did see a bit of a downturn in Sunshine Coast home prices as the Reserve Bank raised rates in 2022,” PropTrack chief economist Angus Moore said.
“But prices started to recover in 2023 and are nearly back to where they were before rates started to rise.
“The Sunshine Coast has been an extremely popular region over the past four years or so and has seen extremely strong price growth as a result.
“It is among the strongest-growing regions in Australia (and) it remains popular.”
Mr Moore said there could be more action on the local property market this year, which could boost prices.
“Inflation is coming down, and a little faster than what the RBA was expecting, which means we’re much less likely to see further rate hikes, and there’s a reasonable chance we could see interest rate cuts later in the year,” he said.
“If that were to happen, it would provide a bit of a tailwind for home prices,” he said, before adding that “affordability will remain challenging on the Sunshine Coast.”
CoreLogic research director Tim Lawless said some momentum had left the local property market in recent months and prospective buyers had a short amount of time to make the most of it, before property values potentially soar to unprecedented levels.
“There are still some opportunities to get back into the market before prices reach new record highs,” he said.
He said prospective buyers could be emboldened by declining inflation and potential cuts to interest rates.
“The lower-than-expected inflation data for the December quarter could introduce a new sense of optimism over the coming months, as forecasts for interest rate cuts are brought forward,” he said.
“Lower inflation should also help to support consumer sentiment.
“Consumer sentiment and housing activity show a strong correlation, so any lift in consumer spirits is likely to be accompanied by a rise in buyer and selling activity.
“The medium-term outlook is certainly looking more positive given the prospect of lower inflation, lower interest rates and a rise in sentiment.”
But an increase in population and a relative lack of housing could lead to prices rising, as prospective buyers compete for limited stock.
“The fundamentals across South-East Queensland broadly remain quite strong, with interstate migration continuing to drive demand,” he said.
“At the same time, listings were still tracking well below average, implying available supply levels remain at well below average levels.”
Meanwhile, a large property along one of the region’s most desirable beach strips has changed hands, and a three-bedroom unit on the Maroochy River went for millions.
No.245 Oceanic Drive at Bokarina was sold at auction for $3.125m, while No.1202/100 Duporth Avenue at Maroochydore was sold for $4.3m. The latter is in the Azure by Mosaic complex.
Auction results
245 Oceanic Drive, Bokarina
- Sold under the hammer for $3.125m
- 3 Bed, 3 Bath, 2 Car
- Ray White, Adam Budd
1202/100 Duporth Avenue, Maroochydore
- Sold post-auction for $4.3m
- 3 Bed, 3 Bath, 3 Car, Pool
- Ray White, Niall Molloy and Ari Whisson
8 Richmond Lane, Palmview
- Sold prior to auction for $1.36m
- 5 Bed, 3 Bath, 2 Car
- Ray White, Hayley Anderson
301/14 Aerodrome Road, Maroochydore
- Sold under the hammer for $845,000
- 2 Bed, 2 Bath, 1 Car
- Ray White, Ryan Bradeley
48 Danielle Place, Buderim
- Sold under the hammer for $1.051m
- 3 Bed, 2 Bath, 4 Car
- Ray White, Katy Stevenson,
64 Prime Parade, Birtinya
- Passed in at $2m, on the market for offers of $2m-plus
- 5 Bed, 3 Bath, 2 Car, Pool
- Ray White, Dan McNamara
4 Martha Place, Nambour
- Sold under the hammer for $880,000
- 6 Bed, 3 Bath, 2 Car
- Ray White, Ryan Aldred
7/19 Memorial Avenue, Maroochydore
- Sold under the hammer for $2.21m
- 3 Bed, 3 Bath, 3 Car
- Ray White, Pam Thomas and Megan Murray
202/37 Smith Street, Mooloolaba
- Passed in, now on the market for offers in the mid-$800,000s
- 2 Bed, 2 Bath, 1 Car
- Ray White, Brent Higgins
19/42-46 Fourth Avenue, Maroochydore
- Sold under the hammer for $880,000
- 3 Bed, 2 Bath, 1 Car
- Ray White, Pam Thomas and Megan Murray
14/146 Duporth Avenue, Maroochydore
- Sold under the hammer for $1.2m
- 3 Bed, 2 Bath, 2 Car
- Ray White, Brent Higgins
64 Taintons Road, Woombye
- Passed in at $1.7m
- 5 Bed, 3 Bath, 2 Car, Pool
- Ray White, Reuben Park
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