Sunshine Coast Property Market: End of Financial Year Growth and Future Trends
Weekly Real Estate Market Update with Leigh Martinuzzi MPG
The end of the financial year 2023-2024 concluded with notable growth in the property market. While figures vary depending on the news source, here’s the latest information I’ve gathered:
The market saw an 8% increase over the financial year. In monetary terms, this growth is equivalent to $59,000, bringing the new median house price nationally to $794,000. This marks a positive shift compared to the previous end-of-year growth statistics provided by CoreLogic, which reported a -2% decline in the Australian property market.
When we look at our capital cities and regional areas, the median prices stand at $878,000 and $627,000 respectively. Sydney’s median house prices are now at $1,170,152.
For the June quarter, national property prices have grown by 1.8%, maintaining consistency with the March and December 2023 quarters. Monthly price growth ranges from 0.5% to 0.8% nationally. The top performers in terms of growth have been Perth, Brisbane, and Adelaide, along with their regional areas.
The primary driver of rising property prices in Australia continues to be the housing shortage. There is a clear correlation between the strongest performing markets and advertised stock levels. Markets with significant shortages are experiencing the largest gains.
The Reserve Bank of Australia (RBA) recently held their June meeting and decided to keep the cash rate on hold at 4.35%. Although the RBA is not ruling out further changes, the consensus is that prices are slowing, inflation is decreasing, and more properties have been coming to the market in recent months. This has led many to expect the rate of growth to slow further. However, the RBA has not ruled out another rate rise.
Early indicators show that while inflation has decreased, it is not yet within the RBA’s target range of 2 to 3%. In fact, inflation increased to 4% in May, up from 3.6% the previous month. If inflation continues to rise, the RBA may be forced to increase interest rates again, which would be a concern for many.
Ultimately, the property market dynamics come down to supply and demand. Despite an increase in new stock in recent months, the overall market is still facing a severe shortage. More properties on the market give buyers more choice, but due to ongoing high demand, keen buyers are willing to pay asking prices or higher for properties representing great value. Nationally, new listings are up 12% from this time last year and 4% above the five-year average. However, the total listings are still -18% below the five-year average, and new stock levels are being quickly absorbed by ready and active buyers. In Melbourne, a surplus of listings has resulted in more subdued price growth, whereas markets like Perth, Brisbane, and Adelaide are still experiencing significant shortages.
On the Sunshine Coast, the trends mirror the national patterns. We are experiencing a property shortage along with strong demand. Prices vary across the coast, with most markets I operate in seeing annual growth of 4 to 10%. The market continues to move in waves, influenced by media discussions, school holidays, economic factors, tax time, budget releases, and election periods. The expectation for the coming year is that price growth will slow, with estimates ranging from 4 to 6% being fairly realistic.
By staying informed about these trends, we can better navigate the current market and make informed decisions.
