Interstate migration boosting Sunshine Coast residential property markets

Interstate migration boosting Sunshine Coast residential property markets
Interstate migration boosting Sunshine Coast residential property markets

The Sunshine Coast residential property market is still performing well, according to the June report from valuation firm Herron Todd White.

The first six months of 2018 saw a slight fall in the volume of sales compared to this time last year but the main reason was the limited stock availablity.

Although general buyer activity has been good, some agents over recent weeks have begun to notice that enquiry levels have slowed with some urgency disappearing from the market

"Whether this is just a seasonal impact or some early signs of a slowing market, it's still too early to tell," the valuation firm advise.

Properties and areas that have good market appeal are still performing well with the various residential property types, existing dwellings and vacant land still outperforming the residential unit market.

The lower end of both are in demand, particularly the sub $600,000 market, the valuers noted.

Property along the coastal strip from Caloundra to Noosa Heads are as always, in demand, and well positioned good quality rural residential properties in hinterland localities have been generating good interest.

The report discusses how, "the market for property on the Sunshine Coast is still being heavily influenced by the interstate migration from the southern states as well as Brisbane buyers relocating north."

The southern end of the coast has two large small lot affordable housing estates which comprise predominantly sub $600,000 single unit dwellings.

Land continues to sell prior to titles being issued in most cases, however HTW valuers have also begun to see a decline in investor activity with the tightening of credit and investor loans by the banks really taking effect.

Further north, land is still selling well at Bli Bli and Peregian Springs although the supply of vacant land in new estates generally decreases north of the Maroochy River with limited sites available.

The improvement in the prestige and higher end properties has historically been driven by a high percentage of interstate investors from Sydney and Melbourne.

"This is especially the case in the Noosa region," it noted.

The relative affordability when comparing Sydney and Melbourne prices to those of the Sunshine Coast demonstrates pretty good value, suggests the report.

It also appears that the Sunshine Coast is pretty high on the "place to be" lists of baby boomers who have started to retire.

The next large infrastructure projects likely to give the coast another boost are the continued development within the much anticipated Maroochydore CBD as well as the Sunshine Coast Airport expansion.

The reported advised the next big game changer was the Sunshine Coast International Broadband Submarine Cable project which is still to be announced.

The report suggests, this project has the potential to make the coast into a major tech hub.

HTW valuers forecast that the Sunshine Coast residential property market will simmer along in much the same fashion as the first half of 2018 with values being good.

Net migration from the southern states is expected to continue as now it appears that the southern markets are cooling and people are selling up and moving north for lifestyle reasons.

The report also predicts that the market may be in the early stages of transitioning after several years of strong growth across all residential property markets.

Residential Market Trends

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