Queensland’s regional markets have proven more resilient to interest rate rises than capital cities, according to REIQ chief executive Antonia Mercorella. She says regional Queensland offers buyers an affordable option with attractive growth prospects.

Noosa Heads and Coolum Beach have experienced significant upswings, with house and unit prices more than doubling over five years in these coastal communities. Noosa Heads offers an unparalleled combination of lifestyle and natural appeal that has attracted both local and interstate buyers alike.

1. Population Growth

Sunshine Coast property markets continue to experience healthy growth rates despite national price movements, driven by an increasing population and demand for both houses and apartments in the region.

As a result, median house prices have continued to outstrip those in Brisbane. Furthermore, this trend may continue as state government plans call for expedited development of new homes.

ShapingSEQ, an initiative from the government, seeks to build 900,000 additional homes over 12 years and ease population pressures. However, construction on the Sunshine Coast remains challenging due to planning regulations and construction costs; demand remains strong which should help keep prices from collapsing – therefore keeping this upward trend well into 2024.

2. Interest Rates

Low interest rates and an expanding local economy are two key reasons for Sunshine Coast house prices to continue rising; this combination also contributes to property rental rate inflation. But now signs of stabilisation have begun appearing – good news for those searching for affordable places to reside in Queensland!

CoreLogic data shows that property prices across the nation have begun their recovery to pre-Covid-2022 highs. While this is encouraging news, not all parts of state have seen equal rate of recovery; some holiday home towns and select mining town locations have seen notable price decreases due to an ‘inverse sea change’ effect.

Since national interest rate trends could potentially affect Sunshine Coast property prices, it’s essential to keep an eye on them and how they could potentially alter property purchases here. Furthermore, apartment and unit markets tend to be more affordable than standalone houses while locations close to water may attract an ‘on the water’ premium.

3. Supply

Mainstream media portrays housing market turmoil for buyers and sellers nationwide, yet Sunshine Coast property market seems immune from these problems. One potential explanation could be that more people than expected are moving into the region at once, increasing housing demand while supply remains scarce.

As new estates emerge, it’s essential to invest early and secure a spot. Bli Bli, Mountain Creek and Beerwah are excellent choices; close to Mooloolaba while located within catchment zones for top-rated schools.

Migration to Queensland was temporarily interrupted during the COVID-19 pandemic; it has since resumed with remote working opportunities increasing. As such, population growth will once more support Sunshine Coast house price appreciation; however, for this to take place it requires developers being able to keep pace with rising home demand; they won’t be able to do this unless governments increase funding of this industry.

4. Demand

Sunshine Coast home prices tend to be less costly than those found elsewhere in Queensland, making them more affordable than Brisbane and drawing buyers from there. According to research conducted by PRD, this trend will likely continue as more people move between cities.

Interest rates may be increasing, yet demand remains strong – particularly in regional Queensland where people are seeking cheaper homes in comparison with Sydney and Melbourne.

REIQ CEO Antonia Mercorella reported that regional Queensland markets continued to perform strongly this quarter. She pointed out how affordable housing made them an appealing destination for those escaping high capital city prices, including Rockhampton, Bundaberg, Toowoomba and Townsville where sale price declines occurred year-on-year due to “course corrections.” But most other towns experienced strong annual growth.