Should you invest on the Sunshine Coast?

January 20, 2021

One of the hottest property markets at the moment is the Sunshine Coast in Queensland. According to Domain, hotspots across the Sunshine Coast and Gold Coast have seen property values skyrocket by up to 25%. One of the key factors for this is the migration of people from southern states, attracted to the warmer weather and more affordable house prices. Even with the various lockdowns, the pace of investment from Melbourne and Sydney buyers has intensified as investors and relocators wanting their little slice of beach heaven have purchased properties sight unseen. So, is the Sunshine Coast a good place to invest or have investors missed the boat?

The pandemic is driving buyer interest from the capital cities

Australians residing in our capital cities have been forced to reevaluate what’s important this year. The experience of being locked down has made many people cast a critical eye on their homes and decide they want an upgrade. Now there’s increased capacity to work remotely, meaning in many cases your job can travel with you, it’s no wonder so many people are opting to relocate to the Sunshine Coast from either Brisbane or interstate.

Buyers are attracted to a more laid back lifestyle close to the beach, with a lower cost of living and warmer weather. Even once the pandemic is under control, it seems likely that some people’s attitudes may have permanently shifted. People have realised that you only live once and are looking to make their dream home and lifestyle a reality.

The population and demand for property will continue to grow

According to figures released in September 2020 by the Sunshine Coast Council, the population in the area is forecast to grow to over 500,000 people by 2041. That will require a total of over 217,230 dwellings. This equates to about 8,300 people per year who will be in need of housing, driving demand for rental properties and property purchases. With demand outstripping supply, property values and rents will continue to grow.

The area is experiencing an Infrastructure boom

There are several key infrastructure projects underway or planned for the region. This is always a good sign that people will be attracted to the area, driving continued demand for housing.

One of the largest health infrastructure precincts in Australia will be located in the Sunshine Coast; adjacent to a new A$1.8 billion tertiary teaching hospital.

The Sunshine Coast Airport is being expanded to provide direct access from more Australian and international destinations.

A new city centre is being developed at Maroochydore as well as several new residential and commercial developments including the Caloundra South Priority Development Area and a business, technology and retail precinct adjacent to the University of the Sunshine Coast.

Vacancy rates continue to tighten

According to the Real Estate Institute of Queensland, vacancy rates in the Sunshine Coast fell from 2% to 0.5% in September, following a statewide trend where most areas in Queensland experienced a drop in the September quarter. The strong demand for tenancies is good news for investors.

What investors should consider

Not all properties and suburbs in the Sunshine Coast will perform equally or present a great investment opportunity. Make sure you’ve done your research. Are there many owner occupiers in the area where you’re considering purchasing? What is the potential for future supply in the area? Does the property appeal to owner occupiers or just renters and tourists? Is the floor plan practical and does the property have enough natural light? Don’t be sucked in by a lower value property just because it might seem cheap to you. It’s important to do your due diligence to make sure the property will have good long term appeal to potential renters and future purchasers.

David Hancock
David is the Founder and Managing Director of Binnari Property, a team of independent, ethical and reliable property investment professionals, who specialise in researching and providing advice on residential real estate investment properties for clients.
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