Located in the growing Sunshine Coast suburb of Mount Coolum, this investment property was purchased Home Scouts for…
Is the Sunshine Coast a good place to invest in property?
Despite the impact of RBA’s interest rate rises on property across the country, the Sunshine Coast property market has remained relatively resilient – boosted by the strength of its economy, relatively low property supply and major spending on infrastructure. In the past 5 years, almost 20,000 jobs have been created in the region, and this population growth is forecast to continue. The Sunshine Coast economy has averaged growth of 4% per year over the last 15 years, well above the national rate.
In this blog post, we’ll explore in more detail why buying property on the Sunshine Coast may be worth considering if you are looking for your next investment purchase.
The Sunshine Coast has diversified and strengthened its industry base, broadening from tourism, retail and construction to the creation of new industries. The $5 billion health precinct at Birtinya, the “knowledge hub” at Sippy Downs as well as the promotion of other knowledge based businesses have all contributed to the broadening of the economy and it’s now the 9th largest LGA in Australia.
With sustained forecasted population growth over the next 10 years and increasing demand for goods and services, investing in property on the Sunshine Coast presents exciting long term opportunities for investors.
Lifestyle trend and tourism appeal
The Sunshine Coast is renowned for its pristine beaches, lush hinterland, and idyllic climate, making it a sought-after tourist destination. The region attracts millions of visitors each year, both domestic and international. The appeal extends beyond tourism, as more and more people are choosing to relocate permanently to enjoy the region’s exceptional quality of life – helped by the ability to now work from almost anywhere.
In 2022, Queensland recorded the third highest annual growth of the past 40 years of over 104,000 people over the 12 months ending June 2022. According to CoreLogic 37% of national home sales took place in regional Australia in the past quarter, compared to a 10-year average of 35%.
This high level of interest ensures a steady flow of tourism revenue and fuels demand for housing, accommodation, restaurants, and recreational activities—providing excellent prospects for those considering investment.
Moderation of property prices in some areas of the Sunshine Coast
The Sunshine Coast has had very strong property prices for some time, but there are signs in some parts of the market of prices moderating. Days on market in some areas are longer now (in Noosa the median is currently 58 days on market, in Peregian the median is 54 days on market) and there can be less competition than previously, so in some areas there is a better opportunity to buy than in previous years. There remains a shortage of property supply however, and this is serving to hold some property prices up in some markets, particularly apartments.
Strong rental market
Vacancy rates continue to remain at a low 1.6% across the Sunshine Coast (according to SQM), and in suburbs like Marcoola Mudjimba and Twin Waters the vacancy rate is as low as 0.2% (source: Hotspotting). Strong demand leads to higher rents. This, combined with lower (and more stable property prices), result in better yields for investors, which make investing in property in the right areas a good investment decision.
Substantial infrastructure development plans
Investors unlock capital growth opportunities when they identify regions with strong infrastructure development plans, and the Sunshine Coast has substantial infrastructure projects to accommodate the growing population and enhance connectivity. The new Maroochydore City Centre, the Sunshine Coast University Hospital, and the Sunshine Coast Airport expansion are prime examples of major initiatives transforming the region.
$1 billion is being spent on upgrades to the Bruce Highway, and another $3.4 billion is being spent on upgrades at Caboolture, Nambour and Cooroy. The Sunshine Coast will also be home to some venues for the Olympics to be held here, which may provide further opportunities for growth. According to the State Government, there are 18 major projects underway, at a combined value of $500 million across South East Queensland.
Corelogic estimates that the region’s housing value could rise 8% each year for the next 10 years in the lead up to the Olympics.
Such projects not only boost economic activity but also enhance the overall desirability and value of the area, making it an opportune time to invest.
Limited land supply on the Sunshine Coast
Land supply is very limited on the Sunshine Coast, particularly in the Noosa region where there are very strict development controls. So properties with good land components will help maximise capital growth opportunities.
The Sunshine Coast presents a compelling property investment opportunity with its thriving economy, booming tourism industry, robust infrastructure development, education and innovation focus, and commitment to sustainability. As the region continues to grow and evolve, it offers a unique blend of business potential and an enviable lifestyle. Contact us if you would like any help securing your investment property on the Sunshine Coast.
Disclaimer: As with any investment, it is crucial to conduct thorough research, consult with financial advisors, and consider individual circumstances before making any investment decisions.