Jewel in the crown: Coast property best in state
Sunshine Coast Daily Article | by Mandy Squires | 25 Oct 2018
THE Sunshine Coast is shaping as the new jewel in Queensland’s crown, with property price rises outperforming Brisbane and the Gold Coast over the past year. Median house prices on the Sunshine Coast rose by three per cent in the year to June 2018 and are expected to continue to grow strongly, reaching a median house price of $650,000 in 2021, according to a new national housing report.
Even after steady, anticipated increases over the next three years, the median house price in Brisbane in 2021 is expected to be tens-of-thousands of dollars less than on the popular Sunshine Coast, at $615,000.
Can you afford to buy a home on the Sunshine Coast?
- Yes but we have two stable incomes
- Yes, but we can’t afford to eat
- Not in this lifetime
The BIS Economics Australian Housing Outlook, which provides a snapshot of the country’s property market, reveals while the Sunshine Coast is the state’s star performer for 2018 the Gold Coast continues to perform strongly with steady – if slowing – property price rises.
The Gold Coast’s economy has been buoyed by tourism, the Commonwealth Games and the expansion of Jupiter’s Casino along with other major projects, and housing prices are expected to remain moderate over the next three years, averaging two per cent per annum and taking the median house price to $690,000 by June 2021.
The QBE Australian Housing Outlook 2018 – 2021 is an annual overview of the Australian housing market focusing on supply, demand and price forecasts for the next three years.
It shows, across the country, the dream of home ownership is alive and well with first home buyers surging back into the market and lending to them at the highest level since 2010.
QBE Lenders’ Mortgage Insurance chief executive Phil White said the first home buyer market had not been as strong since the Australian Government’s 2008 stimulus package following the GFC, when $1.5 billion was allocated to first home buyers. “The increases in the volume of first home buyers has been supported by improvements in affordability and first home buyer incentives,” Mr White said.
Record low interest rates in recent years had seen a surge in investor lending, but this year’s report showed investor lending scaling back, which should provide further room for first home buyers over the next couple of years, he said.
“Lenders’ responses to regulatory restrictions have contributed to the softening of the market. State Government incentives have encouraged first home buyers to enter the market after several years of being pushed out by domestic and foreign investors,” Mr White said. Millennials, born between 1981 and 1996, are the most influential group in today’s property market and have been largely responsible for the record demand for new apartments and units in cities over the last decade, “providing a steady stream of tenants to occupy these dwellings”, the report states.
In future years, millennials with families could be expected to move out of small rented units and into bigger houses, but it was not known whether they would seek to live in cheaper, outer suburban and regional areas, or remain in the country’s cosmopolitan cities. “The challenge for the market to accommodate demand for this group is to provide a more diversified range of housing options in a proximate location at an affordable price yet designed well enough to accommodate a family,” the QBE report says.