Rental And Housing Markets Face Severe Undersupply On Queensland’s Sunshine Coast
There’s no doubt that Queensland’s Sunshine Coast is ‘hot property’ at the moment. SQM research data shows the number of properties available for rent or sale at the end of 2020 had hit a ten-year low, which very quickly and predictably pushed prices up. Currently, agents’ listings are almost depleted, and developers are turning to greenfield developments in an attempt to meet the growing demand for a coastal lifestyle.
At the moment, the Sunshine Coast’s rental market has a vacancy rate of 0.4 percent, which is quite extraordinary. SQM statistics show this is the lowest in more than 15 years. This has created an undersupply of properties and a landlord’s market. Rental agencies state that dozens of people often apply for the same property, with many offering 6-months’ rent in advance and more than $50 above the weekly rental.
Interestingly, it seems that it’s local buyers that are driving the market, and not interstate purchasers as initially believed. One agent we spoke to said that locals are purchasing in locations they already know and love, and this is what’s creating a sustainable marketplace. Interest rates are very low, so there are buyers out there who are happy to pay more to purchase a property in a location they’re prepared to live in long term. He added that research is key in securing property on the Sunshine Coast, in addition to quick action once a property appears on the market, because it certainly won’t be there for long.
Another agent confirmed that local buyers are out in force, leading the brigade and competing very strongly for the few listings available. While agents are fielding lots of interstate enquires, many of which lead to sales, this is forcing local buyers to make their move now, instead of sitting back and waiting.
He also confirmed that, because the level of sales stock is so low at the moment, property prices are continuing to rise. It’s quite normal now, he said, to received multiple offers on the one property. Properties often sell within 24-hours, with many being sold off-market. Basically, the Sunshine Coast is not able to keep up with demand.
The rental market on the Sunshine Coast is experiencing a major undersupply of rental properties, making it incredibly difficult and very stressful for tenants. Fortunately, more investors are becoming active in the property market, which will hopefully increase the supply of available rental properties. However, there was already an undersupply of rental properties prior to the pandemic, partly due to major infrastructure programs and a strong local economy.
With low investor activity and additional demand from new residents, it’s not surprising the rental situation on the Sunshine Coast is so dire. The Residential Tenancies Authority (RTA) stated that, as at the year ending December 2020, the median weekly rental for a 3-bedroom property on Queensland’s Sunshine Coast had increased by 6.5 percent to $490 per week.
