Are we in a housing bubble on the Sunshine Coast?
There has been a lot of recent discussion in the media of a housing bubble in Australia.
Factors that affect prices in the major property markets of Sydney and Melbourne are not always directly affecting a regional location, such as the Sunshine Coast.
Price rises of more than 16 per cent last year in Sydney have not been reflected in the local market. We believe that low employment opportunities have kept prices low over a number of years on the Sunshine Coast. This has resulted in a small number of houses being built, resulting in higher demand for housing to purchase and to rent.
This is a trend that is slowly changing as the result of improved development including building the first new public hospital in Queensland for over 20 years. The local council is seen as supportive of development, as shown by starts on Maroochydore CBD and Big Top development.
In our accounting business, we see more clients enquiring about investment properties, after the previous one to two years of minimal enquiry. With continued low interest rates and high demand for rental properties, a number of investors are able to purchase cashflow positive investments.
Our view is that prices on the Sunshine Coast will have constant growth over the next few years.