Sunshine Coast Market Outperforms all Capital Cities
THE LUXE COASTAL BLOG
SUNSHINE COAST MARKET OUTPERFORMS ALL CAPITAL CITIES
Sunshine Coast Market Outperforms all Capital Cities – 10 year growth
According to the CBRE report (2023 Q1), the Sunshine Coast has emerged as one of the fastest-growing regions in Australia, surpassing both Melbourne and Sydney in terms of growth over the medium and long-term (10-year horizon). This growth has been attributed to several factors.
One significant factor is the shift in living and working preferences triggered by the COVID-19 pandemic. As people sought to move away from crowded capital cities and metropolitan areas, the Sunshine Coast benefited greatly. The region’s relative affordability, desirable lifestyle, low unemployment rate, and a buoyant economy have attracted newcomers, resulting in sustained annual population growth of 2.4% over the past decade. In the past year, the population increased by 1.9% to reach 403,521 residents.
The housing market on the Sunshine Coast has experienced significant price appreciation. Median house prices reached a peak of $962,000 during the year, reflecting a growth of over 20% compared to the previous year. Similarly, median unit prices rose to $625,000, also representing an increase of more than 20%.
The demand for housing has been strong, leading to a tight residential vacancy rate of 0.8% by the beginning of Q4 2022, which is the lowest on record. This indicates a high demand for rental properties and suggests a competitive housing market.
While interest rate pressures have influenced property prices and caused a correction from the record levels reached in mid-2022, the Sunshine Coast’s long-term population growth outlook remains positive. Additionally, the region benefits from substantial investment spending of $20 million, and its economy is valued at over $21.5 billion, growing at an annual rate of 4.2%. These factors provide a strong foundation for renewed growth beyond 2023.
Overall, the CBRE report suggests that the Sunshine Coast’s attractiveness, driven by its lifestyle, affordability, low unemployment, and robust economy, positions it as a thriving region with potential for continued growth in the future.
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