The response to our Property Market Update report

It has been an extremely busy week over here following the release of the 2022 Sunshine Coast Property Market Update, and in a short amount of time we have received incredible feedback from both industry leaders, media and clients.

We have received plenty of praise from ‘awesome’, ‘brilliant’ and ‘impressive’. People are commenting on the strength of the contents saying it is a  “a well presented and comprehensive report”. Those who understand its importance are thanking us for its message and advocacy.

As it is such a timely topic, the 2022 SCPMU also featured across a range of media including TV, print and radio. Check them out below:

• 7NEWS Sunshine Coast – https://www.facebook.com/watch/?v=668831644185769
• WIN News – https://youtu.be/-S8RWewqs7s
• Sunshine Coast News – https://www.sunshinecoastnews.com.au/2022/05/09/sunshine-coast-population-underestimate/
• Hot 91.1 – This will be further expanded upon on Hot 91’s ‘Hot Property’ Show on Saturday morning from 7-8 am with Jade and Mal

We didn’t expect a response at a national level and we know the State Government has at least accepted they may have more to do on their part, with a peer review underway for the LSDM report, so the elephant in the room is the apparent lack of acceptance (or, worse, understanding) of the issues at a Sunshine Coast Council level. When responding to Sunshine Coast News, a council spokesperson said this;

“New projections based on the 2021 Census will not be released until 2023 and will provide an updated point of reference for reviewing the accuracy of current projections.

Until this time, it is not possible to confirm recent trends or set updated population projections for the Sunshine Coast or South-East Queensland as a whole.

As the past few years have shown, it is difficult to predict with precision what the future may hold for our region.

However, it is Council’s intention that by using the most up-to-date, reliable, and credible sources of population information available – and by having a clear vision with a focus on careful planning and good design – we can grow sustainably whilst maintaining and protecting the things we love about our Sunshine Coast, including our liveability and natural assets.”

This response is highly concerning. The core issue of the report is that we have a massive undersupply now that current planning can’t address and if they don’t change their methodology it will get dramatically worse.

The immediate issue today is undersupply, which equals rising homelessness and lack of affordability. Great news for investors, but not great for affordability.

Their response is concerning and irrelevant for the following reasons:

• It highlights our concern that they don’t understand the current undersupply or their contribution to the crisis. A criss so bad the Mayor is Chairing a task force in an attempt to address rising homelessness due to collapsing affordability.
• We don’t disagree on the last 5 years’ population forecast and growth. We understand the planning model going forward and that it needs revision. The State Government, based on industry pressure, is accepting they need to revisit their historical work, but we don’t see forward forecasting being amended or reviewed frequently enough to be able to ‘tap the rudder’ and realign planning.
• A major concern we raised in our report is that Council does not appear to understand the current issue and therefore has no mechanism to adapt the forward planning model. Their response supports that position. Essentially what they said was “how can we plan for the future when we don’t have the data to look back at the 5 years of historical growth that only includes a very small section of time at the beginning of what is unfolding and will be outdated by the time we get it” or  “yep, our model is broken and you don’t seem to want to support that”.
• Here is the kicker, ready for it. Even if we accept the forward planning and population numbers are correct, that means that Council needs to increase their delivery of units per annum by 200%.

We cannot sit around and wait for old data to be released too late, action needs to be taken immediately to ensure we ‘grow sustainably’. You can’t even begin to address the issue if you’re an Ostrich. It’s time for Council to get their head out of the sand and address why we have an undersupply TODAY.

This is what the 2022 Sunshine Coast Property Market Update is all about. Opening up conversations around this topic to make more people aware of the issues and challenges we are facing in the property market, so the region can plan for a better future.

Everyone can be part of the solution. Awareness is just one level, but now more than ever we need diverse housing and more stock in the rental pool. Investors play a key role in supporting our community while also building their own wealth.

One thing we can be confident about, the future is very exciting for those with the capacity to invest in the Sunshine Coast, over any other region in the country. Contact us today to organise a comprehensive chat with one of our property coaches on this unique market and what opportunities are available for you.