Positioned at the ‘recovery’ stage in the property cycle, there are many things to like about real estate on the Sunshine Coast.
- 330,000 permanent residents
- 6,000 annual increase
- 10% increase in permanent residential population in last five years
- Population growth actually accelerating
Underlying demand for property is rising on the Sunshine Coast.
Supply versus demand
- Need to build 2,200 new dwellings each year
- Undersupplied by about 1,700 new homes
- This equates to about 13% of demand or 9 months
New housing supply cannot keep up with underlying demand.
- 25% up – detached house sales 2013 versus 2012 calendar years
- 19% up – land sales
- 27% up – apartment sales
- 49% up – townhouse sales
As shown in the chart to the right – are increasing on the Sunshine Coast.
More sales are expected during calendar 2014.
- 54,000 new jobs across Queensland last year
- 10,000 or 20% of these were on the Sunshine Coast
- 173,000 local workforce
- Up 20,000 in just 18 months
New jobs are being created on the Sunshine Coast. The Kawana Health Hub is a game changer.
Resale & rental supply
- Just 350-odd properties to rent
- Down by two-thirds on just two years ago
- 1.2% vacancy rate
- Rents now rising – up $15 per week on last year
- 7,000 properties listed for resale (under 5% of total residential stock)
- Stock for resale down 16% on last year
- Re-sales & especially the Sunshine Coast rental market are tight.
- $125,000 average family household income
- Currently 5.1 median house price ratio to disposable income
- Likely maximum average purchase price set around $490,000
- Potential lift of about 7% in median Sunshine Coast residential prices
Some potential upside for local residential prices during 2014.
We anticipate prices to rise between 5% to 7% over the next 12 to 18 months. See chart below.Back