Beachside Regions To Burst Through $1 Million Median
Queensland’s coastal suburbs are on the up.
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Queensland’s Gold Coast, Sunshine and the upper reaches of NSW’s coast, the Richmond-Tweed region inclusive of Byron Bay are predicted to pass the $1 million median price for a detached house by March according to real estate agency, Ray White.
Ray White’s chief economist, Nerida Conisbee, said all three areas were strong performers last year, rising in price between 35% and 47% — an upward trend that is estimated to continue in 2022.
Key drivers for the price rise include increased interstate migration from Sydney and Melbourne, which is likely to continue on the Gold and Sunshine Coast after the Queensland border re-opened.
The move to work-from-home is also driving local Brisbane residents to move towards living in their traditionally owned holiday houses full time.
According to Ms Conisbee, the Gold Coast, in particular, was in a period of change.
“Historically, it’s been up and down, a bit like Perth, but it’s grown and become more of a mixed economy, not so reliant on tourism, and is starting to show more stability with pricing,” she explained.
Ray White cites CoreLogic figures recorded to the end of November, 2021 detail the median detached home price as $939,000 on the Gold Coast, $956,000 in the Richmond-Tweed region and $968,000 on the Sunshine Coast.
Based on an average monthly price growth of 2%, Ms Conisbee expects all will exceed a $1 million median price for houses by March.
By comparison, the Sydney median for houses is $1.38 million, while Canberra reached $1.07 million late last year, as did the Illawarra region where the median is now $1.01 million. Melbourne’s median is $980,000.
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The insurance premium gap between flood affected and non-flood affected homes is significant
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Climate change is already affecting home values due to the impact of more severe weather events and rising home insurance premiums, and the cost of building is likely to rise as regulatory changes designed to enhance climate resilience alter building codes and zoning laws, according to a new report.
The National Housing Supply and Affordability Council describes climate change as an emerging trend that is raising the cost and complexity of supplying more housing. In its newly released State of the Housing System report, the council discusses how climate change is reducing the value of some homes when major weather events cause flooding or other natural disasters.
“The price differential between flood-affected and non-flood affected homes has been estimated to be up to 35 percent a year after a flooding event,” the report says. “Furthermore, the RBA estimates around 7.5 percent of properties are in areas that could experience price falls of at least 5 percent due to climate change by 2050.”
More than one million households are struggling to afford home insurance, and rates of non-insurance are increasing due to the cost. For example, the Australian Competition and Consumer Commission estimated that 40 percent of homes in Northern Western Australia were uninsured in 2020.
“Climate change is causing home insurance premiums to rise across Australia, adding to already elevated housing costs. Homeowners in areas considered at–risk of natural disasters are expected to see insurance premiums rise further or have difficulty obtaining insurance due to heightened risks.”
More frequent and severe weather events such as cyclones and bushfires, as well as coastal erosion and flooding from rising sea levels, present risks to housing safety. More than 3,000 homes were lost in the 2019-20 bushfire season, causing $2.3 billion in insurance losses. The report says the predicted direct cost of natural disasters to the economy and housing will be $35.2 billion per year by 2050.
Climate change and net-zero targets could raise the cost of building new homes, the report says. “Regulatory changes to enhance climate resilience will alter building codes and zoning regulations.
Developers facing higher compliance costs may have difficulties meeting updated standards, potentially delaying or reducing housing availability.”
However, the report says the increased cost of building a home with climate-resistant materials and eco-friendly features is more than offset by lower energy costs over a property’s lifetime. The current minimum energy efficiency requirements within the National Construction Code are estimated to deliver a household–level benefit-to-cost ratio of 1.37, according to the report.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
