A Queensland suburb that has seen house prices soar by almost 200 per cent in the past five years is tipped to add another $557,000 to its values by 2027.
The median house price in Sunshine Beach, which is home to some of Australia’s richest and most famous faces, is currently $3.5 million, and is tipped to surge $557,000 to hit $4.057 million.5 million by 2027.
That is after a meteoric $2.3 million rise in values since 2017.
That forecast is based on an assumed rate of growth of 3 per cent a year, a much more modest number given that house values in the Sunshine Coast suburb have soared 192 per cent since 2017.
Hot on the heels of Sunshine Beach is Surfers Paradise, where median house prices are forecast to rise by another $416,000 by 2027 to $2.61 million.
Neighbouring suburb Mermaid Beach, home to Millionaires Row, Hedges Avenue, is also tipped to see values rise by $382,000 over the next five years, while Brisbane’s New Farm and Hamilton round out the top five with values predicted to rise by $357,000 and $336,500 respectively.
The Brisbane suburbs of Ascot (+$311,000) and Hawthorne (+$291,000) also make the top 10 list for forecast growth over the next five years, while the Sunshine Coast continues to dominate with Alexandra Headland (+327,000), Minyama (+$319,000) and Noosa Heads (+$303,5000) among the top performers.
“Prices rose significantly over the past five years due to a combination of extraordinary events,” PropTrack economist Paul Ryan said.
“Take 2021, which alone represented the strongest annual growth rate in more than 30 years.”
It marked the third-fastest period of growth in history, according to REA.
Aerial view of New Farm park and the Powerhouse Museum on the Brisbane River. Picture: Brendan Radke
For units, Sunshine Beach is again a standout, with apartments there tipped to add $240,5000 to their value, followed by Noosa Heads (+$224,500), Twin Waters (+$167,000), Hollywell (+$166,000) and Sunrise Beach (+$165,000).
Also making the list for units were the suburbs of Bilinga, Burleigh Heads, Main Beach, Peregian Beach and Miami.
The lists suggest that while the rate of growth seen during the pandemic property boom will ease, the insatiable appetite for Queensland’s coastal and lifestyle locations will continue.
Surfers Paradise was a magnet for interstate buyers during the pandemic property boom. Picture: iStock
The exclusive data also revealed the top 10 suburbs that have recorded the biggest price hikes since 2017, with the Sunshine Coast shining brightly.
Along with Sunshine Beach, the suburbs of Sunrise Beach, Minyama, Doonan, Warana, Alexandra Headland and Marcoola all recorded price growth north of 110 per cent over the past five years.
Miami and Currumbin on the Gold Coast also made the top 10 list, with the mining town of Moranbah, which saw values tank after the resources downturn, recording growth of 120 per cent, or $172,200.
For units, the Sunshine Coast again dominated, with seven of the top 10 performing suburbs for price growth.
On the Gold Coast, Palm Beach, Miami and Clear Island Waters were also on the list.
Mr Ryan said a series of fairly unprecedented factors combined over recent years to drive the exceptional growth.
“Interest rates fell to a record low as the pandemic and other shocks hit the economy,” he said.
“This increase in borrowing capacity, along with unprecedented preference shifts towards lifestyle locations and larger homes, pushed prices up very quickly.
“The pandemic supercharged trends towards locations such as Byron Bay and Noosa – with more remote work flexibility, demand for larger homes and, of course, the beach.”
But will we see such a boom again? In short, Mr Ryan said “no”.
“Across the country, home prices increased a massive 40 per cent over the past five years,” Mr Ryan said, adding that such growth was simply unsustainable.
“It would take another rare combined series of exceptional events to see a repeat of the past five years.”
Article source: www.news.com.au