Median Price could hit $1m by 2012

thedaily.com.au

Anyone holding out on purchasing a home, hoping the property market will ease, should be warned - a real estate expert warns it could double in the next five years.

Sunshine Coast leading agent and acting REIQ spokesman Tom Offermann said yesterday “there will be no easing in the market”.

“All indications are that our market will pick up in strength and will be very kind to property owners in three to five years,” he said.

“I would expect medium term capital growth rate of between 10% and 15% to continue, which will see a doubling of prices in the next five to six years.”

This would mean a small two-bedroom home in Maroochydore, which was on the market for $420,000, could expect to be worth close to a million by 2012.

While housing affordability was reaching crisis levels on the Sunshine Coast, Mr Offermann said there were many people around prepared to buy.

“A lot of people coming from other states and overseas find that homes in the $400,000 to $600,000 range within in 10 minutes drive from the beach very attractive at a price they’re willing to pay to enjoy the lifestyle,” he said.