Sunshine Coast property prices are rising to a “new high tide” as the region undergoes a “once-in-history” event of unprecedented growth, leading property figures say.
With more people moving to the Coast and an undersupply of housing, there is huge demand for the limited number of properties on the market.
“What is happening is not just unprecedented but a once-in-history set of circumstances that has been super-charged by COVID,” said Mal Cayley, chief operating officer of Direct Collective.
“It’s something that has never happened before and is unlikely to happen again.”
Mr Cayley told sunshinecoastnews.com.au that game-changing projects like the Maroochydore CBD were triggering rapid population growth, with more than 200,000 new residents to call the city home in the next 20 years.
But at the same time, there were not enough new houses being built to cater to new residents, a housing “crisis” he predicted back in 2013.
Direct Collective’s Making of a City report forecasts a shortage of 8500 properties by 2026, increasing to a 20,000 shortfall by 2040 by which time the population was expected to balloon to 580,000 people.
“It is prudent to note the undersupply of property is unprecedented for any of the top 20 largest cities in Australia, and unequalled per capita anywhere,” the report states.
“So much so that the market could sustain a large reduction in demand for a number of years with little impact on values.”
The Sunshine Coast outperformed the rest of Queensland in the latest June quarter, with median house prices increasing 1.7 per cent to $605,000, according to REIQ’s Qld Market Monitor.
There was also huge demand for units and land, with the median price of units rising by 1.2 per cent to $420,000.
The Auction Group founder Gordon Macdonald said the big question was how high prices would rise.
Mr Macdonald said the number of registered bidders at auction was double the same time last year, fuelling the competition.
He said sales at auctions, where buyers could see who they were bidding against, would help identify the “new high tide mark.”
Sunshine Coast North Realty’s Keith Blanchard said he had “never seen demand as strong as this” in his 25 years on the job, with weekend property inspections were drawing up to 50 people compared to the normal quota of five.
He estimated homes in his region, which stretches from the Maroochy River to Peregian, had increased by $50,000 at the low end, $100,000 in the middle range and $200,000 at the top.
“A $300,000 property is now going for $50,000 more, a property at $500,000 is now $600,000 and at the top end, houses over a million have gone up $200,000,” he said.
Despite anecdotal reports of Melbourne and Sydney buyers driving the trend, agents said most of the interest was still local.
However more Brisbane people who could now work from home appeared to be opting to do so on the Sunshine Coast.
Agents said a combination of low interest rates – and therefore less mortgage stress – and worry about finding a replacement home meant fewer people were putting up a For Sale sign, adding to supply issues.
Ray White Caloundra principal Andrew Garland said his agency sold $10 million worth of properties at a single auction in September, including 2 Robe Street, Currimundi, for $3.2 million and 8 Seaview Terrace, Moffat Beach ($3.2 million).
“We’ve done a couple of properties which sold sight-unseen which is very unusual,” he said.
Mr Garland said the market was “as strong as I’ve ever seen it” as suburbs like Moffat Beach fetched “silly prices”, adding that the pandemic had spurred people to bring forward their sea-change plans.
“People are moving to regional centres and the spotlight is on the Sunshine Coast because we’re not like the Gold Coast which is over-populated and busy,” he said.
“I think the property market will remain strong while the reasons people want to move here continue.”
However, Next Property Group founder Loren Wimhurst said some of the property hype was overstated.
“Prices have gone up but at what level is the question and we won’t know that until months later,” she said.
“I don’t think prices are as crazy as people are talking about.”
Ms Wimhurst said buyers were willing to pay “that bit extra” to secure a home but some sales were falling over because valuations were not keeping pace with asking prices.
She said most buyers were still locals or from Brisbane.
Ms Wimhurst sold a $4.275 million home in Mooloolaba (pictured above) to Sydney couple Liz and Angelo who are looking forward to moving at the end of the year.
The couple from Cronulla are swapping one beachside postcode for another, hoping for a simpler and more quiet life for their children.
Angelo said the value of properties on the Sunshine Coast compared to Sydney meant they could live right on the water.
“You can get more (on the Sunshine Coast) than what you can get for the same amount down here,” said Angelo.
Liz said dropping the kids at school in Sydney was a one-hour process and she was looking forward to the slower pace in Queensland.
“We would have moved (regardless of the pandemic) but the border closures have prevented us from being able to visit and set up the house,” she said.
