We are constantly asked where is the best region in Australia for property investors. So we researched the nation to find the most promising locations and keep coming back to the same region………… The Sunshine Coast.
The fundamentals you always look for when purchasing an investment property are – population growth, employment opportunities, infrastructure spending, affordability, access to services (hospitals, education facilities, shopping, transport) as well as vacancy rates. It’s also important to look at past growth trends and the current market to understand where an area sits on the “property clock”.
When considering all of these fundamentals it’s very hard to go past The Sunshine Coast. It’s going through an unprecedented phase of infrastructure spending on game-changing projects that are still in their infancy. These massive projects will create a legacy of tens of thousands of permanent and many well paid professional jobs.
The Sunshine Coast has been one of the fastest growing regions in Australia for decades. This looks like it will ramp up even further in coming years with the population set to grow in the next 20 years from 316,000 to 475,000!
The entire Sunshine Coast economy is in a stage of transition right now with an anticipated 100,000 jobs to be created over the next 20 years. The local council has commenced on a path to diversify the economy away from just tourism and construction (both of which are now booming) with massive spending on medial and education infrastructure.
The Sunshine Coast is currently experiencing unprecedented spending on infrastructure with the construction of the largest health hub in the Southern Hemisphere among other massive projects. Stockland’s Oceanside development will create around 10,000 jobs. A brand new city centre has just commenced construction in Maroochydore, called SunCentral, that will create around 30,000 jobs. The airport extension is expected to add another 10,000 jobs and open The Sunshine Coast up to the international markets. Stockland’s largest ever development Aura will create 20,000 jobs and the list goes on.
House prices on The Sunshine Coast have enjoyed a return to growth in the past 18 month after being around 8% less than they were 6 years ago. Incomes have increased strongly over this time frame and properties in the region are now more affordable than any time in the past 12 years. Many new residents to The Sunshine Coast migrate from southern capitals Sydney where the median house price is just over $1,034,000 and Melbourne $734,000 compared to just over $480,000 on The Sunshine Coast. So its easy to see why people choose to move to a beautiful location with great family friendly lifestyle for incredibly less money than Australia’s two major cities and remove the debt noose from around their necks.
Access to Services
The Sunshine Coast is Australia’s 10th largest city and has access to all service’s a major city needs. The Sunshine Coast Airport is the fastest growing in Australia and is about to undergo massive expansion in coming years to accommodate the expected increase in flights. It will also become an international airport opening up the region to new foreign markets. The region will have the largest health hub in the Southern Hemisphere and there is also talk of a light rail system to connect the major regions on the Coast.
The vacancy rate across the Sunshine Coast currently sits around 1% with some developments have next to no properties available for rent. While the owner occupier market has turned the corner on The Sunshine Coast investors are only now starting to pay attention meaning supply of new rental properties will not meet the growing demand. With the major projects set to employ tens of thousands more people rents should continue to rise. When the Hospital opens in April, jobs on site increase from 1,700 to around 5,000. They all need to live somewhere??
The Sunshine Coast has traditionally had consistently high capital growth but this has not been the case since the GFC. The market hit the bottom mid to late last year and property prices are still around 8% below their pre GFC peak. It should now see a period of consistent growth.
Supply and Demand
Of all the investment fundamentals listed above the current and future supply of land on The Sunshine Coast indicates a huge opportunity for investors. The major supply of housing will come from two estates, Stockland’s Aura at Caloundra, and Harmony at Palmview. Other than those two there is very little supply left. The further north you go the worse it gets, with the Noosa Shire only holding around 1 year land supply left. Peregian Springs has currently sold out of all stages with no new registered land expected until mid next year, and they have around 20 of those 100 Lots pre-sold.
So all of the fundamentals are incredibly strong and the cherry on top is that The Sunshine Coast is one of the most desirable locations in Australia to live. Generations to come, families will gravitate to The Sunshine Coast wanting a great lifestyle but the land to the north is fast running out. Now is the time to invest before this region becomes unaffordable for the average Australian.
We have so many great packages on The Sunshine Coast at the moment with incredible rental yields and huge potential for equity uplift. We have access to Townhouses, House & Land Packages, Duplexes and Dual Occupancy stock. All positively geared and ready to make you money. These are only going to increase in value into the future and set you up for a wealthy future.
Email us on email@example.com for our current stock list and let us help you “Ride the Wave to Wealth”
Thanks to Forturity Property Investment Partners for putting together this great bit of Sunshine Coast Information