Forget the doomsday forecasters from down south….

26

October

2018

Forget the doomsday forecasters from down south….


Since the 60 Minutes story ‘Bricks and Slaughter’ our phones have been running hot with
anxious property owners and buyers seeking guidance on what the implications will be on the
property market in our region. The story is misleading and as soon as commentators refer to
‘the Australian property market’ that’s when the alarm bells start to ring. There is no such thing
as a single property market – not for Australia, not for a capital city and not even for a region –
there are a myriad of property markets all doing their own thing. How can you compare a home
in Doonan with an apartment in Double Bay or even a townhouse in Deception Bay! All over
some markets may be falling, others will be rising and some may be flat. It is outrageous
misinformation to suggest that ‘Australian property values have fallen’. In fact Corelogic records
that 9 out of 14 major market jurisdictions (8 capital cities and 6 regional centres) all recorded
higher prices than 12 months ago.

 

What we need to do is look at the underlying factors that we are experiencing today that may
affect the property market in our region. We are enjoying a robust local economy with major
infrastructure projects being undertaken (Sunshine Coast Airport, Sunshine Coast University
Hospital, plus numerous Technology Hubs), creative incubator industries popping up and
continuing population growth being fueled by interstate migration. And let’s not forget the
fundamentals that have never changed – pristine beaches and rivers, National Parks, clean air
and a magnificent climate plus the rural countryside and hinterland communities.


In the hinterland region in 2011/12 there were 370 properties sold with an average sale price of
$578,000. Since then there has been year on year growth with 756 sales in the 2017/18 year
with an average sale price of $758,000. These figures demonstrate the underlying strength of
the hinterland market and we anticipate continued growth over the next 2 to 3 years.
So next time you hear or read a commentator discussing “the Australian property market” or
claiming that “Australian house prices have fallen 10 percent”, turn the page or change channels
because the talking head/writer is a charlatan pretending to be an expert.

Graham Smith Kess Prior
0408 874 888 0404 344 399