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Don’t be distracted by the city market

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Don’t be distracted by the city market

The Sunshine Coast’s property market will stabilise but for now, it is as strong as it’s ever been.

Talk of weaker demand and heightened residential property supply in the southern capitals splashed across the news may be worrying some buyers and sellers, but the expert advice is don’t be distracted.

According to REIQ chief executive officer Antonia Mercorella the Queensland market, and in particular the Coast, is sitting in a pocket that can’t be compared to what is reportedly happening down south.

“Our market doesn’t always replicate what is happening in Sydney and Melbourne,” she says.

Both of those markets have been moving at speed for some time while the Coast market has been moving at a much more modest pace until two years ago when COVID-19 hit, and the world was turned on its head.

“We have seen extraordinary demand and price growth, which has been much higher than we have seen historically,” Ms Mercorella says. “The Sunshine Coast in particular has outperformed Brisbane and it’s not just Noosa, it’s really the Sunshine Coast as a whole.”

Based on current data there is no indication the Coast market is slowing. In fact, Ms Mercorella says interstate migration is continuing and there is an expectation that international migration will have a positive impact on the Queensland market.

“The way in which the Sunshine Coast market is performing, I think it’s a pretty unique market,” Ms Mercorella says. “Certainly, we haven’t seen any signs it’s slowing down.

“What we have seen over a number of years is the Coast property market has grown from strength to strength. And that’s not just the sales market, it’s also the rental market. It has one of the tightest rental markets in Queensland at the moment.”

Going forward, an increase in interest rates, the increasing cost of living and wages growth could force buyers to think more carefully about what they can afford to borrow and how much money they want to put into the residential market.

Another uncertainty is the looming election outcome which may put the market into a “holding pattern”.

“At some stage our market will start to stabilise, and we will see a slower rate of growth because it will get to a stage where it is not sustainable,” Ms Mercorella says.

But she countered these comments of concern with a reassuring positive outlook. “I don’t recall a time when we have seen our market so strong consistently across virtually all parts of Queensland.”

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Tracey Johnstone has worked as a Journalist for over 15 years. She started as a sailing writer and working on international events both in Australia and overseas. For several years Tracey was a feature writer for a national Seniors newspaper before bringing her experience in buying, selling building and renovating Coast property to MWP in 2019.

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