Gold Coast Housing Shortage & Sunshine Coast Market Trends
Weekly Real Estate Market Update with Leigh Martinuzzi – 11th July 2024
This week, Matusik released some interesting insights and projections on the population growth on the Gold Coast. The report highlights a severe undersupply of housing in the area. It is expected that in the next 12 to 24 months, property prices may see a significant increase due to this undersupply. Population projections indicate that the Gold Coast will see a rise to 850,000 residents over the next decade, which is a 23% increase on current figures. This translates to an average of 20,000 new residents each year, necessitating around 9,500 new dwellings annually to keep up with the demand. However, current housing approvals are only a fraction of what’s needed, leading to constraints on supply.
What does this mean for us on the Sunshine Coast? Similar growth patterns could be expected as we approach the 2032 Olympics and more residents from southern states migrate to Queensland. Many who are considering the move may find the Sunshine Coast a more favourable option than the Gold Coast. This could lead to a rise in property prices here too, albeit perhaps to a slightly lesser extent. The supply of both new and existing homes continues to be a challenge.
In other news, home loan approvals are down by 1.7% in May. While not highly significant, some experts suggest this could indicate a potential slowdown in the housing market in the coming months. However, new loan approvals are still up 18% compared to this time last year, so there is no cause for alarm. It might just be a slight pause before we see activity pick up again as we head into the warmer months later this year.
Investors are showing renewed activity on the purchasing front despite higher interest rates and rising building costs. Since 2021, building costs have risen by 50%, and while prices have now stabilised, this still puts a lot of strain on the building sector and those looking to buy and build new homes. This is why I see more value in buying established homes. This trend is likely contributing to the notable increase in prices for near-new or fully renovated homes in the area over the past several months. With limited land available for building and high construction costs, established homes offer a more viable option for many buyers.
As we approach spring, now is a great time to start preparing your house for sale. If you’d like to discuss your options and get some guidance on how to maximise your sale opportunity, you can book a consultation with me at no charge. Click the link here – Book a Consultation.
