Sunshine Coast Real Estate Market Update: Prices Rise Amidst Limited Supply
Weekly Real Estate Market Update with Leigh Martinuzzi MPG
The Sunshine Coast real estate market has witnessed an upward trajectory in property prices, in line with the broader trend across Australia. While Sydney, Brisbane and the Sunshine Coast have experienced decreases in prices over the past year, prices have started to rebound over the last few months. Additionally, the exclusive $1 million club has become even more exclusive, with a significant decrease in the number of properties valued over $1 million. In this market update, I delve into the latest trends, new listing challenges, and rental market dynamics on the Sunshine Coast.
Despite recent fluctuations in the property market, the overall trend suggests a positive movement in prices. Sydney’s prices rose by 0.4% over the last week and 1.2% over the past 28 days, while Brisbane experienced a 0.5% increase in prices over the last week and a 1.1% increase over the past 28 days. Additionally, across the country, prices have increased by 1.2% over the past 28 days, indicating a positive trend. However, when compared to the previous 12 months, capital dwelling prices remain -5.8% lower, reflecting a decline in overall value. CoreLogic reports that the market recorded the sharpest decline in prices on record, falling by -9.1% over the last ten months until February 2023. Despite this decline, there has been a modest recovery in the past 3 months, with prices moving up by 2.3%. Nonetheless, prices are still -6.9% lower since the recent peak, underscoring the market’s volatility and the need for careful consideration by buyers and sellers alike. However, if these trends continue what will values look like in 9 months’ time? My guess is that we will be looking at gains of anything between 5 and 10%.
Corelogic this week reported that the exclusive $1 million dollar club has become more exclusive. Of the near 4400 markets across Australia anaylised the markets with median values of $1 million dollar plus have recduced by -23% and on the Sunshine Coast that is down -13%.
New listings have been a persistent issue across Australia, including the Sunshine Coast. While sales continue to occur, with 78,700 homes sold in the three months leading up to May, the persistently low number of listings, consisting of only 68,250 properties listed during that period, has resulted in a sales-to-listings ratio of 1.15. This scarcity of available properties has contributed to maintaining firm prices and, in some cases, even driving prices higher. Auction clearance rates have also indicated stronger buyer sentiment, with last weekend’s rates reflecting increased competition due to limited quality homes for sale.
Matusik’s shared some charts this week regarding Australia’s population growth. With a lower number of building approvals and fewer homes coming onto the market, I expect this will impact property prices. Australia recorded a peak population growth in 1971 of 535,000 people. And we may come close to that this year and in the years ahead, this will surely increase demand for properties and impact prices.
As sellers observe sustained price growth, their confidence in selling is expected to rise, leading to an increase in housing supply. However, demand will also increase as sellers become buyers, so I can’t expect this to have too much of a downward effect on property prices. And if the RBA eases back on future rate rises this will likely have a positive impact on price growth in Australia.
While rental fees are on the rise in capital cities, the Sunshine Coast rental market is not experiencing the same level of demand due to affordability factors. Vacancy rates remain low, but the rental market dynamics are influenced more prominently by migration and demand in capital cities.
Selling and buying property during school holidays can offer advantages such as increased buyer availability and higher demand for family-friendly homes. However, it can also mean a more competitive market and timing challenges for both parties involved. Considering local market dynamics and seeking professional guidance is crucial in making informed decisions during this period. Ultimately, weighing the pros and cons while aligning with personal circumstances and goals is essential for a successful property transaction during school holidays.
The Sunshine Coast real estate market has witnessed a positive trend in property prices, aligning with the broader national market. Limited supply, as indicated by low new listings, has contributed to the firmness of prices and heightened competition among buyers. Looking ahead, the projected population growth and an anticipated increase in housing supply are likely to support further price growth. As sellers gain confidence and supply increases, the market is expected to evolve, presenting opportunities for both buyers and sellers on the Sunshine Coast.
AUCTION CLEARANCE RATES
- Queensland – 44% (215/1060)
- NSW – 65% (926/1181)
- Victoria – 67% (861/920)
- ACT – 61% (57/77)
- South Australia – 70% (105/255)
- Tasmania – 67% (3/105)
- Western Australia – 83% (6/675)
- Northern Territory – 100% (2/19)
*(Auctions/Private Sales)
REVIEW(S) OF THE WEEK
Thank you Leigh
I found Leigh to be very professional and very knowledge about the property market in the area within which I purchased. Leigh is very courteous and answered my questions with knowledge. Leigh isn’t pushy and I very much appreciated that as well as the opportunity to wander around the property on my own. Leigh negotiated the purchase price very respectfully for both parties. A positive experience. Many thanks Leigh. – Buyer
