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Sunshine Coast house prices soar and could push even higher

It’s official – the Sunshine Coast is now one of Australia’s hottest property markets where even a humble beach shack a few streets from the dunes could cost you millions.

Following a record year of growth, home prices across the once laidback beach town reached record heights over the September quarter, the latest Domain House Price Report revealed, with house medians in Sunshine Beach soaring by 47.6 per cent to an astonishing $2.665 million in just 12 months.

The prestigious pocket is now the nation’s eighth-best performer for annual price growth, the report showed.

Sunshine Coast beachside suburb Minyama ranked sixth for national annual growth after house prices exploded by 54.4 per cent to $1.66 million.

Fuelled by insatiable buyer demand from cashed-up southern buyers, the aggressive growth shot 11 suburbs into the million-dollar-median-house-price club – which now has a membership of 15. And more are tipped to join.

Sunshine Beach is a sought-after spot in the pandemic. Photo: Damien Davidson Builders

“This is a market that’s still very much powering along and incredibly, there’s still more room for growth … so watch this space,” Domain chief of research and economics Nicola Powell said.

“There was still a 5.4 per cent increase in house prices (over the September quarter across the Sunshine Coast) and we’ve seen four consecutive quarters now above five per cent growth.

“Many of these areas have always been highly sought after – such as Sunshine Beach, Peregian (Beach) and Noosa … and they have always been your classic places to buy that secondary holiday home. But this is a new level of growth and it’s a new level of price point and that’s a changed pattern.

“I would say the Sunshine Coast was one of the best performing cities in Australia over the September quarter … and it’s up there for annual growth.”

According to the Domain report, the 5.4 per cent quarterly house price rise sent the median to $875,000, while units rose 6.3 per cent to $590,000.

Outside of Minyama and Sunshine Beach, more than a handful of suburbs achieved annual price jumps of more than 30 per cent, including Buddina, where the house price median soared 44.3 per cent to $1.255 million; Peregian Beach, which saw the median house price rise 35.2 per cent to $1.115 million; and Sunrise Beach, where the house price median climbed 34.7 per cent to $1.36 million.

The unprecedented boom also saw the region recently secure Queensland house and unit sale records, which included $16.1 million for the luxurious apartment at 5/81 Hastings Street, Noosa Heads, and $34 million for the immense 17 Webb Road, Sunshine Beach.

Both transacted in the past four months through Tom Offermann Real Estate.

This apartment overlooking the beach at Noosa Heads sold for $16.1 million.

It’s an incredible annual report and a remarkable moment in real estate history that has paved the way for a bright future, even if scarcity and affordability fears had frightened off some sellers and buyers, said Reed and Co Estate Agents director Adrian Reed.

“The tension in the Noosa property marketplace [right now] is palpable,” Mr Reed said.

“Records are being re-written daily, and the sense of urgency to secure blue-chip property is at a level we have never experienced. The common misconception is that there is a limited supply; however, the statistics show that the number of sold properties is the highest we have seen in the last three years.

“Homes are selling faster, and stock is not lingering or accumulating on the market. This creates a sense of scarcity with buyers and, in some cases, discourages sellers from releasing homes to the market in the fear that they won’t find the right property when they have successfully sold. The reality is there are still great buying opportunities.”

But buyers need to act fast and have deep pockets to snap up those opportunities, with property experts predicting the fierce competition that fuelled the past year of price hikes will only strengthen once borders re-open.

“Low interest rates and population growth will underpin the market growth for the rest of 2021 [and] the prospect of opening borders is likely to drive increased demand,” Mr Reed said.

“In the past six to nine months, we experienced a notable increase in demand from Sydney and Melbourne; a combination of families looking to transition away from densely populated areas, retirees, sea-changers, and prestige holiday home buyers.”

Sunshine Coast agency Dowling Neylan recently broke the Queensland record for a home sold at auction after securing $16.45 million for the striking 41 Picture Point Crescent, Noosa Heads, in a move that director Dan Neylan said revealed the strong confidence buyers have in the sun-drenched region.

“People are recognising Noosa as the premier resort town on the eastern seaboard and this [boom] is long overdue,” Mr Neylan said.

“But now a lot of sellers are reluctant [to list their homes] because they don’t know where they are going to be able to go next.”

While the supply versus demand ratio is sparking concerns among property punters, Mr Neylan said the gravy train was still gathering momentum thanks to the fundamental cultural shift that’s seen high-end southern buyers consider the region as less of a holiday destination and more of a place to call home.

“People from the city can now run their lucrative business from Noosa and that brings the wealth out to the regional areas. So, you’ve not only got these people who (are) prepared to spend this money but now it’s their principal place to live in,” Mr Neylan said.

“Leading that is the international airport established at Maroochydore and when that gets fully operational, you’re going to have a huge number of expats and international people looking at the Sunshine Coast.

“I have been here for 28 years and before now the migration was predominantly from retirees but now it’s a whole mixture. You drive around Noosa now and you see more Bentleys and Ferraris than you’ve ever seen and they belong to the people who have now decided to call Noosa home.”

Article Source: www.domain.com.au

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