Sunshine Coast Property Market Update – January 2017

Last week the Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella reported that confidence in the local market remains positive and that experts are listing the Sunshine Coast as the Queensland region with the largest potential in 2017.

This is attributed partly to the massive infrastructure works being undertaken in the region including: the $1.13 billion Bruce Highway upgrade, the new residential development projects such as Stockland’s $63million Oceanside Retirement Village, as part of the $5 billion Oceanside master planned community due for completion in 2018, plus ongoing works to the University Hospital, the new SunCentral CBD in Maroochydore and the city of Aura in Caloundra South…to name a few.  These works will create employment opportunities and demand for housing, which should contribute and even accelerate an already buoyant market.

In the September quarter last year, the annual median house price increased moderately by 5.1% from $490,000 in September 2015, to $515,000 in September 2016.  Alexandra Headland, Minyama and Twin Waters reported the largest annual median sale price; and Minyama, Alexandra Headland and Mount Coolum recorded the highest annual growth in median sales price of 28.6%, 22.9% and 13.6% respectively for the 12 months to September 2016.

The rental market is generally performing well, with tight vacancy rates, solid gross yields and steady demand.   However, the REIQ are predicting that as the Reserve Bank continues to keep the cash rate at historic lows, tenants are opting for ownership and they expect this trend to continue this year.  Incentives for first home buyers, such as the $20,000 grant for the purchase of new homes will have an impact on areas such as Aura (Caloundra South), and the industry are pushing for this grant to be extended to existing homes also as a way of addressing housing affordability concerns.

Overall, an interesting year lies ahead, and at this stage the future is looking very rosy for property owners in this region; however, as always, the property market has some vulnerability in response to factors that impact on the economy, both domestically and internationally that may shake confidence or influence interest rate movements. 

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