Sunshine Coast property market on the decline, new data reveals

The Sunshine Coast property market is on the decline, new data has revealed, with some areas dropping as much as 15 per cent, but it’s not all bad news for investors.

The Sunshine Coast property market is on the decline, new data has revealed, with some areas recording a drop as big as 15 per cent. But, that hasn’t stopped experts from identifying where investors should look.

The Sunshine Coast property market is on the decline, according to new data; but some areas have been identified as an investor’s dream.

Property valuation group Herron Todd White’s March month-in-review states values on the Sunshine Coast are “starting to decline” with director Stewart Greensill saying they are falling between five and 15 per cent.

REIQ Sunshine Coast Zone Chair Matt Diesel

Real Estate Institute of Queensland Sunshine Coast zone chair Matt Diesel said the property market had entered a “normalisation” period.

It has followed several years of sky high prices off the back of interstate migration throughout the Covid-19 pandemic.

“I like to say we’ve gone from nuts to normal,” Mr Diesel said.

But despite the slip in values, he said it was “looking like a good year for investors”.

Mr Greensill said it was hard to decipher the current investment market on the Sunshine Coast, given a number of investors were not turning their properties into rentals and moving into them themselves instead.

He described the Sunshine Coast rental market as “one of the strongest in Queensland” for investors, even though the squeeze had softened lately.

An aerial photo of Mooloolaba at the Sunshine Coast.

Mr Diesel said the availability rate currently sat at a “critical” 0.6 per cent, which while well below the normal rate of 2.6 to three per cent, was slightly better than it was in recent years.

Mr Greensill said units by the sea, such as Coolum Beach, Mooloolaba and Caloundra, were good opportunities for investment given their access to tourist amenities with a good rental return.

The current normalisation period is expected to continue for several years, but the market is expected to take another upturn as the 2032 Olympic and Paralympic Games approach.

Mr Diesel said the Games, which are to be held in Brisbane but with a number of events on the Sunshine Coast, will be “the next catalyst” for significant growth and another increase in the market.

Originally published as Sunshine Coast property market on the decline, new data reveals