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Prices hit new heights – and we’re not done yet

Property

Prices hit new heights – and we’re not done yet

A senior economist says data proves our region is one of the top-performing markets for home price growth in the nation. WORDS: Steele Taylor.

Sunshine Coast property prices have reached new heights and are set to keep climbing. Data from real estate experts PropTrack show the region’s median house value was $1.04 million in February.

PropTrack senior economist Eleanor Creagh highlights a rapid rise during the past four years.

“Sunshine Coast home prices are currently at their peak,” she says.

“The Sunshine Coast remains one of the top-performing markets in the country with respect to home price growth since the pandemic onset, with home prices rising 72 per cent since March 2020.

“Compared to the rest of the country, it is the 12th-strongest-performing region out of all 88 SA4 regions, and the fifth-strongest regional SA4 in the country.”

The median home value (houses and units combined) was $958,711. House prices have increased by 5.64 per cent during the past year, and 1.41 per cent during the past month. Unit prices rose by 2.42 per cent during the past year but decreased in value 0.06 per cent during the past three months.

Ms Creagh says multiple factors have contributed to the dramatic escalation in property prices in the region.

“Buyer demand, buoyed by the now-stable interest rate environment, population growth and very tight rental markets alongside tight supply have driven record-high home prices on the Sunshine Coast,” she says.

Ms Creagh predicts that local property values will keep climbing.

“Home prices are expected to continue rising this year, particularly while the expectation remains that interest rates will move lower in the second half of 2024.”

Property prices around the country rose in general last month, by almost 0.5 per cent. Brisbane values have surged 60.7 per cent since the onset of the pandemic and are now on par with Melbourne. Ms Creagh says there has been a resurgence in the property market in 2024.

“The slowdown in home price growth recorded toward the end of 2023 has reversed this year, with prices hitting a new peak in February,” she says.

“More homes have hit the market this year, but demand has kept up with that increase. Housing demand is being buoyed by population growth, tight rental markets, resilient labour market conditions and recent home equity gains.

“Meanwhile, the sharp rise in construction costs and labour and materials shortages have slowed the delivery of new builds, hampering the supply of new housing.”

Homes are becoming more valuable in the region. Ms Creagh says conditions are conducive to more prices rises around the country.

“The expectation that interest rates will fall in the second half of 2024 is likely providing a positive tailwind for activity,” she says.

“Looking ahead, the positive tailwinds for housing demand and a slowdown in the completion of new homes are likely to offset the impact of reduced affordability and a slowing economy.

“As a result, prices are expected to lift further in the months ahead.”

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