Local Area Market Update

The market on the Sunshine Coast is currently strong with many agents reporting strong demand and limited supply. Recent sales activity has shown an increase in the number of sales occurring at or in excess of full asking price as well as more multiple offers being presented which is indicative of a peaking market where demand is greater than supply.

Being a coastal area, beachside localities are always popular amongst buyers. The current low interest rate environment combined with the additional demand being generated by the new Sunshine Coast University Hospital is driving the market. As a result of strong growth over the past two years, this market is becoming out of reach for the majority of first home buyers.

Investor interest from interstate appears to have slowed a little mainly due to banks introducing tighter lending policies. Future interest rate increases would likely have a similar impact in slowing the market.

Another driver in these areas is the lack of available vacant land which has forced buyers to look at older homes that require renovations as an alternative

The most active price point for property on the Sunshine Coast is still the $350,000 to $650,000 price range which can still buy a wide variety of properties including older beachside properties, more modern dwellings in the newer estates, as well as established rural residential properties in the hinterland. Interstate migration will always play an important role, with the Sunshine Coast being a popular retirement area.

The Australian Bureau of Statistics released the first statistics from the 2016 Census of Population of Housing on 27 June 2017. Initial findings for the Sunshine Coast show:

– we continue to be one of the fastest growing areas of Queensland, with the population growing by an average of 6,000 people every year.

– our age profile is getting older with more growth in the 65+ years population than the under 15 years population.

– we continue to build more large (4+ bed) houses and less medium density townhouses and duplexes.

– households are earning $1,500 per month more, and paying $470 per month more on mortgages then ten years ago (2006).

Source – Sunshine Coast Regional Council & Herron Todd and White