Sunshine Coast Property Price Forecast for FY 2025
Weekly Real Estate Market Update with Leigh Martinuzzi MPG
A report by Domain this week has revealed their house and unit price forecast for the financial year 2025, predicting that house and unit prices will increase over the coming year in most parts of Australia. For the Sunshine Coast, house prices are expected to rise by 2-5%, while unit prices are forecast to increase by 4-6%. The stronger price forecast for units is driven by increasing demand, largely due to higher unaffordability in the housing segment. This trend is common across most capitals and regional hubs, where housing affordability is out of reach for many.
According to the Domain report, the factors driving prices higher and into new record territory include population growth, construction challenges, and borrowing power. Conversely, the “downward price drivers” are income stagnation, rising unemployment, and a gloomy consumer outlook. With prices expected to rise, the Sunshine Coast’s median house prices could grow to $1.07m – $1.10m, while unit prices could reach $747k – $754k.
This week, the RBA kept the cash rate on hold at 4.35%. The consensus is that the RBA is confident inflationary pressures are easing, but it remains alert to the presence of price pressures. There is still work to be done to reach the RBA’s target range of 2 to 3%. While it’s unlikely we will see a rate cut anytime soon, the case for a rate rise also remains unlikely. Prices are still on the increase, with CoreLogic’s house price index up 0.4% over the month of May. Current interest rates appear to have a low impact on prices for the reasons mentioned above.
House sales are also up compared to this time last year, suggesting a very resilient market with historically strong demand. Vendors also don’t seem deterred by changing economic factors and rising uncertainties, with asking prices in most markets showing strong gains. For example, the SQM report suggests that asking prices in Brisbane are up by 1.5% over the last week, increased 1.1% over the last month, and are 15.1% higher than they were 12 months ago. Of course, many buyers are still showing caution, but with market conditions still relatively favourable for sellers, it seems unlikely we will see any noticeable decline in sales prices in the near future. This is why Domain’s forecasts, and others, still see prices climbing further.
In Australia, the combined capital city prices are up 10.2% over the last 12 months. Locally, in the Sunshine Coast hinterland suburbs, we are seeing prices reported up anywhere from 3 to 10% over the past 12 months. For all your real estate needs please get in touch, we’d love to assist.
