Sunshine Coast real estate: Suburbs where interest rates have led to profits

Sunshine Coast homeowners in several suburbs have been quietly enjoying a boom period just as interest rates rise with one hinterland area emerging as an unlikely banker.

An up and coming Sunshine Coast hinterland suburb has been identified as a secret banker in the midst of rising interest rates across Australia.

Palmview, the suburb home to the iconic Aussie World, has emerged as a force to be reckoned with according to latest real estate data.

Statistics from PropTrack revealed the hinterland area had median profits of $675,150 from sales between March, 2022 to July, 2022.

Data showed homeowners cashed in after holding onto their Palmview properties for a median period of 4.4 years.

This is based on the difference between the original purchase price and the most recent sale price for homes sold between March, 2022 and July, 2022.

First National Real Estate’s Gavin Flaton said his Sippy Downs agency “100 per cent” saw a peak during this period, with it continuing into the latter part of 2022.

These profit margins come as interest rates rise at their fastest pace in 30 years, with the Reserve Bank raising it to 2.35 per cent in recent weeks.

Mr Flaton said Palmview had attracted a mix of different demographics since its birth several years ago, ranging from first homebuyers to investors.

First National Real Estate Lifestyle Sippy Downs principal Gavin Flaton. Picture: Contributed

“Because it’s a new estate, it’s quite estate oriented … they’re very social in the streets and there’s a real sense of community,” he said.

“It’s only going to go up too when the shops out that way and the road to the highway are built.”

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Further property data revealed affluent areas such as Sunshine Beach, Noosa Heads and Peregian Beach raked in profits of $1.063m, $1.05m, and $808,750 respectively between March and July 2022.

PropTrack senior economist Eleanor Creagh said these wealthy suburbs made the largest median profit in regional Queensland mainly due to interstate migration.

PropTrack senior economist Eleanor Creagh. Picture: Contributed

“There’s been exceptionally strong demand for properties in those areas which has led to exceptionally strong price growth,” Ms Creagh said.

“Housing availability is a key force on the market with the total supply of properties on the market being constrained.”

Ms Creagh said this scarcity of homes on the market would help prop up regional Queensland property markets like the Sunshine Coast.

“It’s still good news for sellers as they’re still selling faster than they were, with there being a number of highly engaged potential buyers on realestate.com,” she said.

“There are still a lot of buyers out there.”