Sunshine Coast Property Market: Lessons from Australia’s $1,000-a-Day Suburbs
Weekly Real Estate Market Update with Leigh Martinuzzi – Martinuzzi Property Group
The Australian housing market continues to defy expectations, balancing between strong demand in certain corridors and persistent affordability challenges. This week, fresh data and commentary have shed light on the forces driving property values higher, even as stretched budgets and rising living costs keep a lid on broader momentum.
One of the most eye-catching stories comes from what have been dubbed the “$1,000-a-day suburbs.” According to new analysis, almost 200 suburbs across the nation have recorded price gains of more than $500 per day over the past five years, and 19 suburbs have exceeded $1,000 a day. Areas like Wollstonecraft and Warrawee in Sydney, Surfers Paradise on the Gold Coast, and Unley Park in Adelaide highlight the power of scarcity and lifestyle demand. These suburbs share common features, limited land supply, strong community infrastructure, and a high lifestyle appeal. While impressive, the story they tell is less about windfall gains and more about the cracks in Australia’s housing system. Demand is still outstripping supply in key locations, and planning bottlenecks continue to hold back new stock. Important to point out this is an analysis over the last five years in which we’ve seen the most significant growth in dwelling prices. It would be worth noting that this would change over a longer period of time, like 10 to 20 years when prices were more stabilised.
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Looking at the market nationally, CoreLogic figures show dwelling values rose by 1.8% over the three months to July, marking the strongest quarterly performance in almost a year. Annual growth has lifted to 3.7%, slightly above the 3.5% recorded in June. Darwin and Perth led the charge this quarter, with Brisbane also putting in another strong result. What’s also notable is the widening gap between houses and units. Across the country, houses now sit almost 50% higher in value than apartments, a trend most pronounced in Sydney where the premium stretches to more than 75%. This widening gulf tells us that the “great Australian dream” of owning a freestanding home remains as strong as ever, even as affordability pressures push many buyers toward smaller dwellings.
Rental markets have also reignited. After more than a year of slowing, rents are rising again, climbing by 3% annually. With housing costs making up a large portion of the inflation basket, this resurgence will keep pressure on the Reserve Bank as it tries to balance its inflation target with the realities of a supply-starved housing system. Construction costs, still climbing at close to 3% per year, are adding another layer of complexity.
On the monetary front, the RBA’s latest 25-basis-point rate cut offered some relief to borrowers, marking the third cut this year. Inflation has edged back into the target band, and unemployment has crept higher to 4.3%. In theory, lower rates should provide a tailwind for buyers, but affordability constraints remain acute. For many households, the rate relief will simply keep them afloat rather than unleash a new wave of demand. Confidence, however, has improved, which could see more buyers entering the spring market.
Auction clearance rates tell a similar story of cautious optimism. National clearance rates jumped to 75% last week, with Brisbane once again standing out. Asking prices have also firmed, particularly in Queensland’s capital, which is up more than 11% year-on-year. Sydney and Melbourne, while still recording growth, are moving at a much slower pace.
The ABS lending figures for the June quarter give us further insight into buyer activity. New loan commitments rose by 2%, with both owner-occupiers and investors increasing their borrowing. First-home buyers were also more active, with the value of their loan commitments lifting by nearly 6% over the quarter. This suggests that, despite affordability challenges, buyers are still finding ways to enter the market, and confidence in property as a long-term wealth builder remains intact.
Beyond the short-term numbers, there is a bigger challenge looming, productivity. Australia’s productivity growth has slumped to just 0.7%, well below the long-term average. Without improvement, economists warn wages growth will stagnate, household wealth will be pressured, and property affordability will remain under strain. It’s a reminder that while rate cuts and price movements dominate headlines, the deeper structural issues, tax settings, planning reform, investment in infrastructure and education—will shape our housing market’s future.
For now, the market remains patchy but resilient. Brisbane continues to lead with strong price momentum, Sydney and Melbourne are steady but subdued, and regional markets like the Sunshine Coast and the Gold Coast are still drawing demand thanks to lifestyle migration. With supply tight, confidence slowly improving, and lending volumes ticking up, conditions are aligning for a more active spring.
The key, as always, will be understanding where demand is structurally stronger than supply. For sellers, this remains an opportunity to capitalise on buyer competition. For buyers and investors, the challenge is picking the markets that mirror the conditions of today’s $1,000-a-day suburbs, before they hit the headlines.
Selling? If you’re considering your next move and whether it’s buying, selling, or just understanding where your property stands and feel free to reach out. I’m always happy to offer a no-pressure chat to help you make confident, informed decisions.
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