Affordable hinterland lifestyle attracts COVID-weary city dwellers

A perfect storm is brewing for the hinterland property market as cashed up buyers continue to escape to the country from interstate, overseas and within Queensland.

House prices in regional areas have risen faster than in capital cities for the first time since 2004, as COVID-19 increases people’s desire for space.

Corelogic recently calculated that over the past financial year, 25,350 residents relocated from other Australian states to settle in Queensland. This influx, as well as the return of expats from overseas, has increased demand in the hinterland.

Maleny

Rodney Millett of Maleny & Hinterland Real Estate said the market was buoyant with the increase in demand from other states. “But it’s further influenced by the intra-state influx from residents relocating from the greater Brisbane and wider Queensland regions to the Sunshine Coast,” he said.

“This, coupled with the slower supply of available properties for sale, has certainly supported the firming of prices across the  Hinterland.

“Investors are also returning to the property market, looking for opportunities to secure stronger returns with property investment versus other investment avenues. These positive factors are all contributing to a stronger market. But one that is still underpinned by some overall national influence of uncertainty moving forward.”

Palmwoods

Palmwoods agent Mike Burns said southerners and expats were driving sales in the hinterland.

“The market is still incredible with huge influx of expats returning to Australia, looking for lifestyle and the Sunshine Coast hinterland is a most desirable location,” he said.

“In terms of rentals we had 60 applications on a Woombye property. The tenant paid six months up front and well above asking price. It’s very hard for tenants to secure a home.

“In terms of sales we’re getting multiple offers on all listings and great results for our sellers. But a problem for a few of our sellers is that they want to down-size and move but if I put their home on the market it will sell and leave them homeless.

“I am currently trying to find a new home for them before we go to market.”

Nambour

Nambour agent Peter Wrigley of Carolans First National said the market was moving at a rapid pace. “The conditions of the market are such that there is a only small amount of stock available but great demand for stock,” he said. “This is driving up prices. Added to this is the fact that interest rates are so low.

“Given these circumstances, sellers should sell and buy in the same market. Tenants should also seriously be talking to their mortgage broker to see if they can buy in this market. Otherwise, with so many owner-occupiers joining the market, the supply of rental properties is also dwindling. If you can’t beat them you are going to have to join them I’m afraid.”

Blackall Range

Mapleton agent Roger Loughnan said regional house prices were seeing significant increases for the first time in 15 years.

“We have always said that the Hinterland was a very stable market with an annual growth rate of approximately three percent,” he said. “Every now and then we do have a catch-up, such as now, where sales are being achieved well above previous levels.

“The last quarter or 2020 has been particularly strong with most of our sales meeting and exceeding the asking price. We believe the combination of a surplus of dollars from the ban on overseas travel, low interest rates and people being able to access their super to boost their deposits has helped fuel this boom.

“Buyers have ranged from Coast residents seeking a quieter environment or a weekender, to ex-pats wanting to secure property back in Australia and certainly a number of buyers from New South Wales and Victoria.

“Listings are now the biggest issue, with current residents not wanting to sell because they don’t know where to go. Any locals considering a move, now is the time to make good gains.”