The Sunshine Coast property clock is ticking its way towards a peak in the market, providing investors a boost of confidence on the tail end of the pandemic.
Whether you’re an experienced property investor or a first-time homebuyer, timing the market is key. The property clock is a popular model used to track a market’s cycle. The cycle starts at 12 o’clock, signifying the peak of market, and makes it way clockwise through the stages of a decline, bottom of market, recovery and rising market.
Picking the perfect time to get in and out of the market is essential to getting the most value from your investment. As a general rule, the best time to buy is at six o’clock when the market is low, while the best time to sell is at 12 o’clock when the market is at its peak.
The Sunshine Coast’s residential market is currently approaching a market peak sitting around 10 o’clock, according to the latest report from property valuation and advisory group Herron Todd White.
The report suggests low stock levels coupled with all-time low interest rates, alongside government stimulus packages are responsible for the increasing demand for Sunshine Coast real estate.
One of the directors at Herron Todd White Sunshine Coast, Stuart Greensill, says the Coast’s desirable lifestyle has seen the region’s market come out on top during the current economic situation.
“When we look at the impacts of COVID, there’s going to be winners and losers,” Mr Greensill says. “Fortunately for the Coast, we are experiencing a win.”
“Many discussions I have had with agents up and down the entire east coast have pointed out how Australian’s are coming to terms with health lockdowns becoming the new norm. Queensland is a very desirable location for many people down south,” Mr Greensill says.
“With Melbourne entering their second lockdown, many Victorians are at their wit’s end… and with the beautiful weather we experience here on the Sunshine Coast, you can see why it’s such a desirable place to relocate.”
The latest border figures show more than one million travellers have applied for border passes to enter into Queensland since the chief health officer implemented the Queensland Border Declaration Pass on July 10.
“We’re already seeing an increase of traffic along Mooloolaba Esplanade and even further away in the hinterland towns of Maleny and Montville,” Mr Greensill says. “To think one million people across Australia have applied to enter into Queensland is massive, many of whom are chasing the coastal lifestyle the Sunshine Coast has to offer.”
Mr Greensill says the change to working arrangements has also been a big drive for many people living and working in the city, allowing more people to shift into a home office environment on the Sunshine Coast.
“Effectively, what’s happening on that front is the Coast market is opening up to people from Brisbane and other areas who are no longer restricted to living and working in the city,” Mr Greensill says.
“Also, with the Coast offering high internet speeds just like the capital cities, it’s a major drawcard for people looking to shift their work space and find a healthy work/life balance.”
Moving forward, there are some concerns as to how the property market may respond to the ending of government stimulus packages as well as the upcoming state election towards the end of the year.
“You can never fully predict what will happen to the property clock, there are still some clouds on the horizon,” Mr Greensill says. “That’s why it’s important when investing in property, to stick to the fundamentals.”