Sunshine Coast property prices that sat flatlined for years following the global financial crisis have finally lifted. The region has experienced record growth over the past six months, outstripping price rises in Brisbane and the Gold Coast over the past 12 months.
Data from Domain has revealed Sunshine Coast’s jewel in the crown, Noosa Heads, topped the list of best performing suburbs for the area, increasing its median house price by 18.3 per cent in the past six months alone. The median house price in Noosa Heads is now $768,750.
It comes as no surprise to Domain Group chief economist Andrew Wilson.
“Noosa Heads is top shelf and once momentum gets going with property on the Sunshine Coast, Noosa’s always going to be up there,” he said.
“It’s had very strong growth over the past year, the best it’s had in a while. If you’re a homeowner on the Sunshine Coast, you’d be breathing a sigh of relief.”
Second on the list was Peregian Beach, which has seen an increase of 14.3 per cent. Its median house price is now $677,500.
Mr Wilson said that while the Sunshine Coast had performed better than Brisbane and the Gold Coast over the past year, price growth for all three regions was fairly similar when averaged out over five years.
Median prices for the regions are currently very similar; as of the December quarter, the median price in Brisbane is $511,361, the Sunshine Coast’s median is $530,000 and the Gold Coast just edges ahead with a median of $545,000.
“The Sunshine Coast had some catching up to do, which it has done more recently,” Mr Wilson said.
“Overall though, it’s as you would expect: all three areas have had similar growth over the past five years.”
Jennifer Carr, co-principal and director at Richardson & Wrench Noosa, described the past two years as “a turning point” in property on the Sunshine Coast.
“Certainly in and around Noosa we’ve had a lovely couple of years not just with price growth but with the volume of sales,” Ms Carr said.
“Everything seems to have consolidated so it now feels unassailable.”
Ms Carr described the growth pattern as “sustainable”.
“When we went down after the GFC, it hit Noosa hard. Coming back from that, it was up and then down, you’d be three steps forward one month, two steps back the next.
“But it has steadily climbed the past two years, a nice pattern has emerged and I think what we’ve got now is a very realistic market. Prices are fair.”
Ms Carr recently sold a four-bedroom, three-bathroom home with a pool and jetty on the absolute front of the Noosa River for $3.790 million.
She said it was listed at $3.95 million and was a perfect representation of the current Noosa property market conditions.
“It’s a fair price and a good price,” she said. “It’s a wonderful time for Noosa property right now.”
Mr Wilson said the Sunshine Coast was very much a lifestyle market.
“Retirees, empty nesters and people buying holiday houses have always targeted the Sunshine Coast,” he said.
“More recently I think there’s been a bit of the ‘wealth effect’ going on; the economies in Sydney and Melbourne have been good, people have been making a lot of money from property.
“They’re coming through the Sunshine Coast cashed up and then realising that prices are cheap in relative terms and that’s driving a lot of the buyers at the moment.”
Original Publish: http://www.domain.com.au/