Elite AgentQLDReal Estate Industry News

Severe undersupply on the Sunshine Coast

The number of properties available for sale or rent on Queensland’s Sunshine Coast has hit the lowest levels in more than a decade, which is pushing up prices rapidly.

According to SQM Research data, the number of properties available for sale on the coast is the lowest in more than a decade.

However, the situation for the Sunshine Coast rental market is even more extreme, with its vacancy rate of 0.4 per cent the lowest in more than 15 years, according to SQM Research statistics.

Image Property Sunshine Coast sales agent Matt Nickerson said contrary to popular opinion, the strong sales market was being largely driven by local buyers rather than interstate purchasers.

“Local buyers are out in force, competing strongly for the few listings available,” he said.

“We do have a lot of enquiry from interstate, and quite a few sales, but this is actually motivating local buyers to make their move sooner rather than later.”

Matt Nickerson of Image Property Sunshine Coast

Mr Nickerson said locals were purchasing in locations that they knew and loved, which was creating a sustainable marketplace.

However, the low levels of sales stock meant property prices were rising with multiple offers often the norm, he said.

“With interest rates so low, many buyers are prepared to pay a bit more to secure a property in a location that they will live in for the long-term,” he said.

“Research is key for anyone keen to secure a slice of coast real estate at present as well as acting quickly when a property comes on the market as it won’t last long.”

The Sunshine Coast rental market is experiencing a significant undersupply of rental properties, he said, which was making it difficult for tenants.

“We are beginning to see more investors active in the market, which may start to increase the supply of rental properties somewhat,” Mr Nickerson said.

“That said, the coast rental market was undersupplied long before the pandemic, partly because of our strong local economy and major infrastructure program.

“So, with additional demand from new residents, as well as low investor activity, the situation is not overly surprising.”

According to the Residential Tenancies Authority (RTA), the median weekly rent for a three-bedroom house on the Sunshine Coast has increased 6.5 per cent to $490 per week over the year ending December 2020.

For a two-bedroom unit, the weekly rent has increased nearly eight per cent to $410 over the same period, according to the RTA.

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