Households get out of a fix

By Mitch Gaynor

HINTERLAND mortgage holders are getting on the front foot to counter rising interest rates with a new year surge in enquiries on variable options.

It comes as Bank of Queensland (BoQ) Chief Economist Peter Munckton, who will be speaking on the Sunshine Coast this week, told GC&M News that while he expected growth to slow in the second half of 2023, the country would probably avoid a recession.

With billions of dollars of mortgages wrapped up in expiring cheap fixed rate deals, BoQ Beerwah owner/manager, Martin Kavanagh, said local customers could secure better outcomes for themselves by renegotiating ahead of the end of their fixed term.

“With the year underway we’re seeing a lot of people wanting to know what their payments will be when their fixed rate ends,” he said.

“It’s always good practice to look at your mortgage rate regularly, but customers can save themselves unnecessary extra payments if they see us before their fixed rate term ends.”

Mr Munckton said he expected Sunshine Coast property prices to largely follow the national trend.

Recent data showed falls of over 12 per cent in Brisbane and Mr Munckton said he was pricing in 15 to 20 per cent falls in this cycle.

“The higher interest rates are inarguably the catalyst and I think rates have a little further to go,” he said.

The hinterland would follow a similar pattern but he said so long as the jobs market stays strong then “it’s all very manageable”.

“The housing dynamics on the Sunshine Coast is linked to population growth which is 1 per cent higher than the rest of Australia,” he said.

“With no more land and high demand that will supply higher prices.”

He added that the coast’s more diversified economy was able to withstand the risk of wilder fluctuations.

When asked about the importance of building mass transport infrastructure including the Beerwah to Maroochydore railway, Mr Munckton said it made sense.

“It’s got to happen,” he said. “We’ve had strong population growth and with more people you get a whole lot of traffic jams.

“The Olympics gives us a very good reason to build it, but it should be part of a longer term plan.”

However, he added that there were other issues that would arise including worker and material shortages.