Sunshine Coast beats Brisbane and Gold Coast in Australian house price growth

Median house price in the area grew 3.8% to $622,500, and median unit price increased 2.4% to $420,000.

The Sunshine Coast is emerging as one of Queensland’s strongest residential property markets, outpacing both Brisbane and Gold Coast as an influx of sea-changers to the region bolsters house prices.

New CBRE Research shows the Sunshine Coast has continued to record solid price growth for both houses and units, while simultaneously, population growth in the region is at its highest level in almost a decade.

In the year to June 2020, the Sunshine Coast’s median house price increased by 3.8% to $622,500, while the median unit price climbed by 2.4% to $420,000. The annual rates of growth were higher than the Gold Coast – 3.1% and 1.7% respectively - and the Greater Brisbane area – 1.3% and 1.7% respectively.

Significantly, house and unit prices were effectively flat in the second quarter of 2020, while Gold Coast recorded just 0.2% growth for houses and 0.5% for units. By comparison, the Sunshine Coast recorded a 0.8% growth in house prices during the quarter, while unit prices increased 1.2% during the same period.

CBRE’s Senior Managing Director of Residential Valuations, Jarrod Fazer, said as more people continued to work from home, regional and satellite property markets such as the Sunshine Coast were experiencing an uplift in transaction activity and house price growth.

“Regional and satellite residential property markets are experiencing remarkable resilience in the face of COVID-19. Places like the Sunshine Coast are reaping the benefits of a Zoom boom, with people realising that the world has probably changed forever in relation to their ability to stay connected via video conferencing,” Mr Hulcombe said.

“Over the past few months, we’ve seen people who were considering a sea-change to the Sunshine Coast bring that decision forward due to COVID-19. Being able to connect to the workplace remotely via video conferencing has made it easier for people to enjoy benefits of a regional lifestyle, while keeping their capital city jobs.”

Highlighting this, sales turnover has been significantly higher across the Sunshine Coast market. In the year to June 2020, 5,565 houses changed hands – reflecting a 6.4% increase year-on-year.

CBRE data shows strong population growth – from both intrastate as well as interstate – was a key contributor supporting house price growth.

With a population of 328,428 at June 2019, the Sunshine Coast has recorded growth of 2.7% per annum over the past three years, with the net population increase of over 25,500 the strongest sustained increase since the early 2000s.

During this period, 60% of new residents to the Sunshine Coast were from other parts of Queensland, while 30% heralded from New South Wales and Victoria.