Why Are Sunshine Coast House Prices Rising?

Why Are Sunshine Coast House Prices Rising?

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The housing market is often unpredictable, with factors like debt-service costs, credit availability and housing supply and demand all playing a role in its fluctuations. On the Sunshine Coast alone there are numerous vibrant local markets including hinterland towns like Glass House Mountains, Diddilibah-Rosemount and Nambour that thrive due to this dynamic market environment.

Unit prices have seen dramatic gains in coastal regions such as Noosa and Coolum over recent months – almost doubling within months!

Table of Contents

Demand

Due to Sunshine Coast house prices rising at an unprecedented pace, it is essential that we understand why. With its robust economy and appealing lifestyle attracting many potential buyers, combined with limited housing supply causing demand to surge even more in this region’s property market.

Queensland’s positive COVID-19 performance and record-low interest rates are fuelling demand for its properties, leading to one of Australia’s highest real estate growth rates.

Many well-off interstate movers are moving money out of Melbourne and Sydney into Queensland’s more affordable real estate markets, providing support for its property market against major fluctuations.

Supply

Sunshine Coast property market is not immune from supply constraints caused by limited new construction and rising construction costs, which has limited the number of available homes for sale and has put upward pressure on prices.

Lack of local construction workers has also increased building costs, pushing house costs in this part of Australia higher than elsewhere and further pushing up house prices on the Sunshine Coast.

Despite these constraints, the local property market remains resilient, drawing cash-rich buyers from southern states eager to relocate northward. This trend is expected to continue into 2024.

The Sunshine Coast’s natural and lifestyle appeal make it an attractive location for those relocating from capital cities, with internal migration anticipated to drive house prices higher in hinterland suburbs of the region. Attractive features of living there such as affordable housing options and favorable COVID-19 performance will drive demand further.

Interest Rates

The Sunshine Coast provides a delightful combination of natural beauty, lifestyle amenities, and affordable real estate – making it a highly desirable location for property investment and growth over time. This makes the region particularly appealing to buyers of holiday homes in particular.

With access to an experienced and diverse labour force, businesses in numerous industries are taking advantage of the region’s numerous opportunities. This surge has resulted in increased residential property demand – propelling its continued development.

CoreLogic data indicated that Sunshine Coast suburbs experienced strong annual house price growth in 2021. Eleven Sunshine Coast suburbs entered the million-dollar median house price club; more are anticipated to do so soon.

House prices can differ significantly depending on where a property is located in Noosa & Mooloolaba; while more cost-effective options could exist inland like Nambour.

Inflation

Although property prices on the Sunshine Coast have skyrocketed, it remains an affordable region for those looking to relocate. A recent analysis by real estate website Hotspotting put Sunshine Coast among one of Australia’s best 10 places for purchasing property.

People are migrating to the Sunshine Coast region in droves, as its home values have seen an approximate 60% surge in just one year and, according to CoreLogic, boasts the highest average property price outside Brisbane.

Cameron Kusher, PropTrack director of economic research, explained that Sunshine Coast property prices had experienced “superior price growth” relative to most areas across the nation. While nationwide property values usually double every 15.4 years, on the Sunshine Coast it took only 8.25 years.

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