Australians are leaving the nation's capital cities in favor of sunnier skies and more affordable living. While plenty of destinations are drawing attention, one perennial fan favourite continues to shine: the Sunshine Coast.
"Southeast Queensland attracts people who can afford to chase a better lifestyle, moving from Sydney, Melbourne, Brisbane, New Zealand, the UK," Gordon MacVicar, co-owner of the Noosaville and Coolum Beach Mortgage Choice franchise offices in the Sunshine Coast, told Australian Broker.
"The client profile on the Sunshine Coast has shifted significantly over the last several years," the broker explained. "We're seeing more high-income earners, more self-employed clients and more people with complex financial situations who want a broker that can actually engage with their circumstances rather than just process a standard application. The demographic change on the Sunshine Coast has driven that."
But it’s not just MacVicar noticing the transformation. The numbers back it up. Commonwealth Bank of Australia's (CBA) latest Regional Movers Index (RMI) shows regional Australia continues to draw city dwellers, outpacing moves in the opposite direction by 31%.
According to the report, the biggest winners in net internal migration are, in order, the Sunshine Coast; Greater Geelong in Victoria; Fraser Coast, which sits just north of the Sunshine Coast; Lake Macquarie near Newcastle in New South Wales; and Moorabool in Victoria. Most of the people flocking to these locations came from Sydney and Melbourne, 54% and 38% of net outflows, respectively, according to the report.
"Australians making the move are seeking lifestyle, a local community and job opportunities beyond the capitals," said Kylie Allen, executive general manager, regional and agribusiness banking at CBA. "And regional communities are increasingly delivering.
"The shift to regional Australia also reinforces the need for coordinated planning around housing and investment and infrastructure, so regions can support these growing communities," she added.
Allen noted that there's been double-digit growth in business lending in regional and agribusiness in the past five years. "This all adds up to stronger and growing regional economies," she said.
Despite soaring property prices nationwide and higher interest rates, MacVicar says it's not too late to get into the Sunshine Coast's housing market. But he added that brokers need to set reasonable expectations among buyers.
"To give you a sense of how expensive it's become, $1.4 million on the Sunshine Coast now gets you a knockdown or a complete renovator. That's the reality," MacVicar said. "But it's blue-chip real estate. The demand is real, the supply constraints are real and prices keep reflecting that. The problem is supply, and it's structural, not cyclical.
"There's no upgrading stock," he continued. "Someone who wants to move up from a four-bedroom house can't find anything to go to. And the downsizing market is nearly non-existent on the north end of the coast. People in their 50s and 60s with the kids gone are rattling around in five-bedroom homes with nowhere to downsize to. So they stay put. That keeps pressure on prices regardless of what rates are doing.
"You're not buying in Coolum Beach for $600,000. Those homes are $1.4 million for a knockdown or renovator," the broker said. "For first-time homebuyers the opportunities are in Nambour, Gympie, Sippy Downs, areas where there's still room to get in."
