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Sunshine Coast Property Market Predictions 2023: A Bright Outlook for House Prices and Rentals

CEO Khai Intela
The Sunshine Coast property market has experienced remarkable growth in recent years, with prices soaring and demand reaching unprecedented levels. As we look ahead to 2023, it's essential to understand the key factors shaping the...

The Sunshine Coast property market has experienced remarkable growth in recent years, with prices soaring and demand reaching unprecedented levels. As we look ahead to 2023, it's essential to understand the key factors shaping the market and predict the future landscape for potential buyers and sellers.

A Steady Rise in House Prices

The median house prices on the Sunshine Coast have surged by over $300,000 since pre-pandemic levels. Weekly asking prices have consistently reached seven figures, indicating strong investor interest and confidence in the region's real estate market. Moreover, there has been a shift in buyer preferences, with a significant emphasis on land rather than apartments.

Jordan Navybox Jordan Navybox. Image: Supplied.

The Sunshine Coast housing market has experienced a gradual reduction in supply since 2012, leading to soaring prices. According to SQM data, property listings on the Sunshine Coast plummeted from a peak of 10,000 in 2019 to barely half that figure during the depths of the Covid pandemic. However, despite the decrease in available properties, prices have continued to rise steadily.

A Surge in Demand

The Sunshine Coast has become a top destination for property buyers, triggering a surge in demand. Houses on the Sunshine Coast have seen a remarkable increase in value, jumping from around $1.4 million in March 2020 to a peak of $1.8 million in February 2022, according to Domain. This surge in demand has prompted real estate agencies like Cohen Handler Queensland to allocate more resources to serve the Sunshine Coast exclusively.

While the overall market has witnessed a correction since the peak in May last year, some suburbs, particularly those in the Noosa shire, have seen significant price reductions. However, these suburbs were also the ones that led the way during the recent boom market.

Tight Rental Market

The rental market on the Sunshine Coast is currently experiencing low vacancy rates, consistent with national figures. SQM reports a vacancy rate of 1.6%, with only 849 rentals available on the market. This scarcity has created favorable conditions for property owners, while tenants face increased competition for available rental properties.

2023: Time for Negotiation

As we look ahead to 2023, a dichotomy between buyers and sellers is emerging. Buyers are becoming more cautious and expecting more negotiating power in transactions. However, sellers are showing resilience and holding firm on their price expectations. This shift in dynamics may result in a more balanced market, with both parties adjusting their strategies for successful transactions.

Jason Baron Jason Baron. Image: The Property Baron.

According to Jason Baron from The Property Baron, sellers need to work harder to secure a sale in the current market environment. Agents are finding it more challenging to list properties as the year progresses, reflecting buyers' cautious approach to purchasing.

Overcoming Rate Headwinds

The Sunshine Coast property forecast for 2023 is influenced by several factors, including interest rate uncertainties and cost-of-living pressures. The recent increase in interest rates has led to a decrease in borrowing capacity, impacting buyers' budgets. However, the market is resilient, with buyers still willing to offer competitive prices if sellers are open to negotiation.

Jared Candlin Jared Candlin. Image: Supplied.

Jared Candlin, the Head of Growth & Buyers Agent at Cohen Handler, highlights the importance of accurate pricing in a tight market. Overpriced properties tend to linger on the market and eventually sell for less than their potential value. Moreover, increasing living standards and costs have made buyers more cautious, further emphasizing the need for fair and transparent pricing.

The Future of the Sunshine Coast Property Market

Despite the challenges posed by inflation and rising interest rates, the Sunshine Coast property market is expected to remain buoyant. While buyers and sellers may approach negotiations with caution, there is still strong buyer interest in the region's real estate market.

Land has become the focal point of investment decisions, with buyers shifting their focus away from properties with body corporate fees. The stability and long-term potential of land ownership have become increasingly valuable to investors, ensuring a resilient market even in the face of economic uncertainties.

As supply remains low and demand continues to grow, experts predict that the Sunshine Coast property market will perform strongly compared to other markets in the coming years. So, if you're considering entering the Sunshine Coast real estate market, now may be an opportune time to make your move.

References

  1. The Property Tribune - Sunshine Coast Property Market Predictions 2023
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