Sunshine Coast property outlook: Local insider’s 2022 predictions

A property insider has revealed there are fewer buyers in the Sunshine Coast’s market but that will do little to ease record prices. See his predictions:

The Sunshine Coast’s property market has been one of the hottest in Queensland but experts are predicting a steady 12 months ahead.

Interstate migration, international borders reopening and interest rates are expected to be the key factors to determine how house and unit prices change this year.

Real Estate Institute of Queensland zone chair Matt Diesel said recent flooding would also be at the front of prospective buyers’ minds.

The Sunshine Coast copped an intense drenching over six-days, flooding homes and tearing up roads.

“It’s really highlighted flooding issues and some people who haven’t had that in their periphery while looking at the market will have that front of mind now,” he said.

“Some will be looking at if flooding is an issue or could it be in the future.”

Core Logic’s latest quarterly report shows in the 12 months to January, 2022 the Sunshine Coast’s house prices grew by 35.4 per cent.

It was also the fastest-selling region for houses with a median time on market 15 days.

Mr Diesel said he expected prices to remain steady this year as early trends showed fewer buyers in the market.

However he said that would be compensated with an ongoing low supply.

“We’re still seeing strong demand from those buyers though from the low to the high end of our properties,” Mr Diesel said.

“We’re also going to see interest rates rise and historically what we see when that happens is those people sitting on their hands move quicker.”

He said he didn’t expect interstate migration to slow either – with inquiries still strong from New South Wales and Victoria.

“More people from down south are still making their way here,” he said.

“We’ll also have international buyers too who have been waiting for years to get back.”

He said one family of four in the United Kingdom who wanted to move to the Sunshine Coast were facing costs of up to $50,000 in flights and quarantine last year.

“Now we’re seeing free passage through the borders, with easier travel and costs have come right down,” Mr Diesel said.

“I think prices will remain steady in 2022.

“We’ll see a slight incline but nothing like the rapid growth in the past two years.”

Mr Diesel said the 2032 South East Queensland Olympics was also on buyers and sellers’ radars.

“Throughout Covid we saw a lot of localised movement with locals either upsizing or downsizing but I think in the next little while it’s going to be interstate and international buyers that will dominate the market,” he said.

He noted a recent sale of 47-49 Gloucester Rd at Buderim of $3.6m to a New South Wales family.

That property – with five-bedrooms, a pool and a tennis court – failed to sell when it was listed two years ago.

“As we’ve seen it’s been an interesting way to start the year but I’m excited for what 2022 is going to bring,” Mr Diesel said.