Sunshine Coast Property Market Insights

Rising Listings, Buyer Trends, and Economic Insights with Leigh Martinuzzi MPG

I reported on this on Monday on my YouTube channel (link here). It looks more likely that there will be a rate cut towards the end of the year rather than a rate rise. Based on all indicators, it appears that economic growth is slowing, which means inflation will continue to trend down. At this stage, the RBA has the cash rate on hold at 4.35%. Some leading indicators show that retail spending is trending down, as is overall consumer spending. Unemployment seems to be on the rise, and AMP’s wage growth indicator shows a slower-than-average future. Additionally, listing numbers and auction numbers are trending higher in the southern states, which might indicate a slower transacting market in real estate ahead.

Here is an interesting trend I am witnessing at the moment in suburbs within the Sunshine Coast hinterland area. Newly built homes, or fully renovated homes, are getting a higher than usual number of buyer interest, with prices remaining confident with time frames for sales well above average. Yes, the shiny new always seems to get more attention than the old, but I still find it interesting. I’ve always been inclined to buy old and add value. You can generally get more bang for your buck and, over time, make your own improvements to the property. However, many people seem to be allured to the new. Below is a list of some local sales in Palmwoods alone in the last few months. We have more and more buyers wanting this kind of property: residential, neat and tidy, 4 bed, 2 bath, 2 car garage, a bit of space in the yard for kids and/or pets, room for a shed ideally, and some prefer a pool or room for a pool. I figure these properties are getting more interest than usual at the moment because there is a land shortage and the timeframes and costs to build new are tough. So, naturally, people go with the next best option.

• 7 Rimmel Place, Palmwoods QLD 4555 – $1,200,000
• 6 Gallows Place, Palmwoods QLD 4555 – $1,115,000
• 36 Petigrain Avenue, Palmwoods QLD 4555 – $1,075,000
• 45 Golden Pine Way, Palmwoods QLD 4555 – $1,175,000
• 62 Skyline Circuit, Palmwoods QLD 4555 – $1,165,000
• 13 Vine Forest Crescent, Palmwoods QLD 4555 – $1,375,000

After a slowdown in growth between 2022 and 2023, regional Australia is getting increased attention. Property price growth is up 2.1% on average in regional Australia over the last three months. Here is what Ms. Ezzy from CoreLogic said: “The diversity in economic activity across these parts of regional WA and Queensland, including agriculture, tourism, ports, and mining, would be contributing to the strength of these markets, along with their higher levels of interstate migration, relative affordability, and low supply levels.” On top of that, rental growth continues to climb. Again, I think we are seeing a slightly lagging effect as affordability drives more people into our regional markets. Until things settle down and price growth slows for both sales and rentals, I can only imagine we will see regional areas continue to grow as higher demand for properties pushes into those markets.

On the Sunshine Coast, I’ve provided a snapshot view of some local trends thanks to CoreLogic (see chart below). Have a look at the five-year growth we’ve experienced for property prices and rental fees; rather phenomenal, isn’t it? The average price is now just over $1,000,000 for a home on the Sunny Coast, and rental is nearing $800 per week. Affordability will continue to be an issue and will likely have more buyers and renters looking further afield to live so as not to put too much financial pressure on themselves while still being able to maintain an ideal level of lifestyle. While some of these figures can be slightly lagging, we can see the market has improved this year, likely due to the pause on interest rates.

We can see transaction numbers have improved, and vendor discounting is also lower, meaning homeowners aren’t needing to lower their price expectations too much. Clearly, there is still a lack of homes available, as transaction numbers are well below the five-year averages. I expect transaction numbers will remain low moving forward, and property shortages will remain a key issue in the real estate market on the Sunshine Coast and across most of Australia. I also expect that prices will remain reasonably steady but might inch up a bit over the next 12 months. Although I am confident, we won’t see the growth numbers we’ve seen in the past five years—it’s simply not sustainable—I am also confident we won’t see a massive drop as some are predicting. As many navigate the uncertainty of the economy and real estate market, I think we will see, as we have in the past, the market moves in ebbs and flows.