With the sunshine coast becoming an increasingly attractive destination for tourists, property investors, and new arrivals coming here from other areas, it’s no surprise that the real estate market in this region has been booming in recent years. The past few years have seen a steady rise in property prices, but what can we expect from the 2023 property market? In this blog post, we will take a look at some of the key factors that will shape the Sunshine Coast’s property market in 2023 such as government infrastructure spending, airline travelers and mortgage interest rates.

Mortgage Interest Rates Coming Off Fixed onto Variable Early This Year

A big portion of mortgage interest rates are expected to come off lower fixed rates onto higher variable rates early this year which will likely put financial pressure on some current mortgage holders who may find it harder to pay their existing mortgages due to higher interest payments. However, how much impact this has on the overall market remains unknown at present as it largely depends on how quickly mortgage providers adjust their loan products. It will also be interesting to see how the RBA reacts and what impact it has on both consumer sentiment and housing prices going forward into 2023.

Rental Crisis  

With vacancy rates at nearly zero across much of The Sunshine Coast due to an undersupply of housing stock coupled with high demand for rental properties, many tenants have been struggling since 2020. This rental crisis is likely to continue into 2023 and rents are expected to keep rising until more housing stock is built. Where this ends up throughout this year will be an interesting one to watch.

Government Infrastructure Spending Ahead of the Brisbane Olympics

The Queensland Government has announced plans to increase infrastructure spending ahead of the Brisbane Olympics in 2032. This includes major projects such as the upgrade of existing road networks and public transportation systems on the Sunshine Coast which will undoubtedly make the Sunshine Coast a more attractive place to live and continue to increase demand on our existing housing.

New Influx of People Migrating to the Region

We have seen a correction in the market last year of around -5% to -15% throughout the Sunshine Coast depending on the type of property and location. As more people migrate to this area from other states around Australia, we can expect to see an increase in demand for housing on the Sunshine Coast. This has already been reflected in recent house price increases with some suburbs seeing huge growth rates over the last few years. With migration expected to continue throughout 2023 and onwards, there is little doubt that these trends will continue throughout this year.

Bonza Airline Starting Flights from Sunshine Coast in 2023

With Bonza Airline set to start flights from the Sunshine Coast Airport this year, we can expect an increase in tourism along with a corresponding rise in demand for accommodation on the Sunshine Coast and in Noosa. This could put further upward pressure on rental prices as well as house prices due to increased competition among buyers looking at purchasing property here over other locations around Australia.

Conclusion  

We can safely say that there is plenty of potential for further growth within the real estate sector here on the sunshine coast throughout 2023 thanks mainly due to increased government infrastructure spending ahead of the Brisbane Olympics and rising migration numbers from other states around Australia. In addition, Bonza Airline starting flights from here later this year is also likely to provide a further boost for tourism related services and accommodation across all areas of our region. While there is likely to be some ups and downs throughout the year, all these factors combined should help maintain strong property market conditions here on The Sunshine Coast throughout 2023.