A surge of Victorians to the Sunshine Coast will help keep property prices high, a leading economist says.
Ray White Chief Economist Nerida Conisbee said buyers from around the country, especially Victoria, were jostling for a limited number of homes in our region.
Almost 13,000 people shifted from Victoria to Queensland in 2020, and many of them relocated to the Sunshine Coast.
“We haven’t seen that level of movement since the early 90s,” Ms Conisbee said during an online Sunshine Coast Property Market Forecast presentation.
She said the region was attractive to buyers amid low interest rates and the lure of a beach lifestyle.
“We’ve never seen this much movement to regional Australia,” she said.
“People are looking for more space and are working differently.
“The demand is being driven, not just by people moving, but also by a number of people buying holiday homes.”
It’s led to fierce competition and significantly higher prices.
Top growth suburbs in the region during the past 12 months
- Sunrise Beach $1.188 million (36.6% change)
- Coolum Beach $846,000 (21.7%)
- Wurtulla $760,000 (21.2%)
- Mount Coolum $747,500 (20.6%)
- Noosaville $1.350 million (21.1%)
- Tewantin $702,000 (18.1%)
- Woombye $637,000 (20.3%)
- Twin Waters $970,000 (19.5%)
- Buderim $795,000 (16.9%)
- Maleny $750,000 (19.3%)
Noosa tops the list for growth with an 18.2% price rise in the past 12 months. The median house price there is now $912,500.
The Sunshine Coast experienced a 12.9% change, with the median house price rising to $700,000.
The region’s best performing suburbs included the likes of Sunrise Beach (median price $1.18 million, up 36.6%), Coolum Beach ($846,000, up 21.7%) and Noosaville ($1.35 million, up 21.1%).
Wurtulla also experienced a big change ($747,500, up 20.6%), as did Woombye ($637,500, up 20.3%) and Twin Waters ($970,000, up 19.5%).
Sunshine Beach recently became the region’s first $2 million-plus (median price) suburb, while Alexandra Headland hit a median price $1.21 million.
Now and then: 2021 prices compared to 2001
- Sunshine Beach $2.0425 million (was $317,500)
- Noosa Heads $1.412 million (was $247,000)
- Noosaville $1.35 million (was $259,000)
- Alexandra Headland $1.21 million (was $225,000)
- Sunrise Beach $1.188 million (was $215,000)
- Doonan $1.135 million (was $275,000)
- Buddina $1 million (was $169,500)
- Moffat Beach $$995,000 (was $173,000)
- Mooloolaba $960,000 (was $190,000)
- Bokarina $987,000 (was $197,000)
“They are beachside areas. There’s lots of interstate money targeting those areas. People are looking for lifestyle, second homes, beautiful places to live,” Ms Conisbee said.
“We do love to be by the beach and that is really pushing growth.”
The rise in house prices has been remarkable in recent years.
Homes in Sunshine Beach had a median price of $317,000 in 2001 but are now worth $2.04 million, while homes in Noosa Heads were $247,000 and are now $1.412 million.
Twenty years ago, you could buy a home in Alexandra Headland for $225,500 but they’re now worth almost $1million more.
Ray White Buderim Director Brett Graham said the region was “growing up now”.
“The Sunshine Coast is really coming of age,” he said.
“It’s not playing second fiddle to the Gold Coast anymore.
“The inter-state migration into Queensland is huge and it’s not slowing down.
“And there is expected infrastructure, with the Olympics coming. That will be a big thing.”
“Everyone worries about the population here but once we get the infrastructure it will ease a lot of that, like the transport woes. It will make the place a lot easier to get around.”
He said the high demand for housing would be somewhat alleviated by the end of 2021.
“A lot of homes are under construction at the moment, and they will be finished by the end of the year and that should ease a bit of the supply problem.”
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Ms Conisbee said the high demand for Sunshine Coast properties had created a logjam.
“The Sunshine Coast has been struggling with a shortage of properties at a time the rest of Australia is seeing an increase,” she said.
“That does make it very much a sellers’ market and a very stressful time for buyers.
“When there’s not many properties available for sale the sellers have a significant edge.
“It (the lack of homes) has been driven by very high levels of demand for property.
“They are getting snapped up very quickly and prices are getting pushed up very quickly.”
She said interstate buyers had saved more money to put towards homes during the pandemic.
“When we go into lockdown, we don’t spend much, we tend to put money away and that means household savings have doubled since before the pandemic.”
“It has been one of the factors that has really driven house prices.
“We have very low interest rates and … there is lots of money targeting housing.”
There were fewer listings in the region this year, down 3%, bucking a national trend.
There were less homes for sale in the June quarter, compared to a year ago, particularly in Maroochydore (175 to 108), Palmview (70 to 23), Baringa (56 to 28), Peregian Springs (63 to 38) and Alexandra Headland (55 to 30).
Ms Conisbee said there were additional issues.
“Government debt is hitting $1 trillion by 2025, and we’ll have to pay it back sometime.”
“And there is concern about household debt.
“One of the real issues is how quickly housing finance has grown in Queensland.
“We’ve seen it double since the depths of the pandemic.”
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She said homebuyers were borrowing more money than ever before, to help them compete in a tough market.
“It is something that is going to be a concern once we see interest rate rises.”
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