The Sunshine Coast is experiencing a property boom. From the beautiful coastline between Caloundra and Noosa to the lush hinterland of Montville and Maleny, the northern tip of South East Queensland is very much in demand. Prices across the region broke records in 2021, with low interest rates creating great borrowing conditions and strong internal migration leading to surging demand. The local market is expected to stabilise in the latter half of 2022, with cooling conditions presenting a number of great borrowing opportunities. If you need help from the experts, Sunshine Coast Financial Services can find the right loan to suit your needs.
Strong national growth recorded over 2021
The property market has seen active growth, especially over the past couple of years, with COVID-19 bringing a huge uptrend in key markets. According to figures from Core Logic using annual data from February 2022, house prices have risen 22.36% in Sydney, 12.55% in Melbourne, and 30.37% in Brisbane/Gold Coast. Using Core Logic data from late 2021, Queensland’s Sunshine Coast recorded an even bigger annual growth rate of 32.3%.
There are many reasons for this sharp upwards movement, including a rise in home working arrangements, an exodus from southern cities, and positive lifestyle factors associated with the region. Along with the Southern Highlands, the Shoalhaven region, and the Richmond-Tweed region — which also experienced tremendous growth — the Sunshine Coast represents an idyllic lifestyle destination. While fewer people are leaving Sydney and Melbourne since lockdowns came to an end, the regions can expect to feel the pressure throughout much of 2022.
Balance brought back to the market
After a positive start, the past few months of 2021 brought balance back to the Australian property market. Sydney has experienced negative monthly growth at -0.1%, with Melbourne up slightly at 0.01%, and Brisbane/Gold Coast also faltering at 1.96%. The Sunshine Coast housing market is also expected to stabilise, although the slope’s likely to be much shallower.
According to data from the Real Estate Institute of Queensland (REIQ), median home values were strong for the September 2021 quarter, with Noosa as the standout with 13% growth. While this is much less than the massive 19.8% growth recorded in the June 2021 quarter, it highlights the momentum that’s already built into the market.
Looking ahead to 2022 and beyond
According to the Australian Housing Outlook for 2021-2024 prepared by BIS Oxford Economics, rapid population increases on the Sunshine Coast will help to maintain property growth at a faster pace than in Brisbane. The report also noted a recent increase in residential and infrastructure construction, along with reduced dependency on the tourism industry compared to the Gold Coast and North Queensland. Based on the report, prices on the Sunshine Coast are expected to grow by 13% in 2021/22, before slowing over the next two years to reach a median price of $986,000 by June 2024.
If you’re looking for property on the Sunshine Coast, it’s a great time to buy or invest. With pressure dropping after a heated 2021 and supply issues slowly being addressed, the next few months will present some fantastic opportunities.
Sunshine Coast Financial Solutions is your local all-solution mortgage professionals servicing Queensland. To get access to quality lenders who can offer you the best rates, please contact us today!
