The Sunshine Coast has experienced incredible property market growth which is reflected in its record low rental vacancy rate of 0.5%, says a local broker.
Gordon MacVicar (pictured) runs the Mortgage Choice Peregian Beach brokerage and said there was high demand from interstate buyers who had snapped up available properties in the region.
“The vacancy rate on the Sunshine Coast was 2.4% in March 2020, and with migration over the last two years, we are now sitting at 0.5%. There is a supply shortage of property, but not a supply shortage of people wanting to move here,” MacVicar said.
Read more: Brisbane property prices rise 33%
The major trend the broker noticed was locals capitalising on the increased equity in their properties.
“We have gone from being heavily weighted to purchasers running around 70% of our settlement figures, to March’s figures of 65% of our settlements being refinancers,” he said.
“The top three areas people are spending their equity on around the home are their kitchens, adding swimming pools, and air-conditioners. You can’t get anyone to install a swimming pool this side of Christmas – everyone is booked out.”
MacVicar said due to the low stock levels and people being priced out of the local market, the rental market has been negatively impacted.
“People are either selling their investment properties or moving into them. As a result, the rental market has shrunk considerably, and renters are being pushed further out as rental prices skyrocket.”
MacVicar said the investor clients he worked with were looking in the $500,000 to $700,000 price bracket – a popular price point with limited stock available.
“Lot of investors want to invest locally but are struggling to find anything,” he said.
“Our investor clients are now looking at outer Brisbane areas which is a bonus for Brisbane as infrastructure is coming the city with the upcoming Olympic Games.”
MacVicar said the biggest challenge he was facing was the high volume of 100% clawbacks.
“It’s a sellers’ market right now where they can sell quickly and make a strong profit but as brokers we are not experiencing any of the clawback,” he said.
“Clients shouldn’t have to think about how much their mortgage broker gets paid.”
The broker said the local market had transitioned from being a “ridiculous” market to a strong market.
“I think it’s better for everyone because properties were getting listed and gone the same day and locals were unable to get a look in. I am glad to see local buyers have the opportunity to get back into the market and here’s hoping for a more sustainable market moving forward.”
