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The Sunshine Coast economy is one of the largest regional economies in Australia with planned for and ongoing sustainable growth
“NOTHING SUPPORTS PROPERTY PRICE GROWTH LIKE MAJOR NEW INFRASTRUCTURE DOES! RESULTING IN NEW JOBS, ECONOMIC ACTIVITY, POPULATION GROWTH AND IMPROVED AMENITIES FOR RESIDENTS!”
Sunshine Coast has a strong economic foundation well supported by a strong regional economic strategy offering long term sustainability and being a game changer … the future is really here!
Mayor Mark Jamieson “The Sunshine Coast offers investors an unrivalled mix of quality investment opportunities, prime commercial and coastal locations and an idyllic lifestyle and environment.
As one of Queensland’s fastest growing regions and Australia’s top ten significant urban areas, the Sunshine Coast is becoming one of Australia’s leading city regions for the 21st century.
The Sunshine Coast is building a new economy based on a clear 20-year economic plan, which presents investors with multiple opportunities and opens new avenues for business growth, development and expansion.
Population will grow from 295,000 to 495,000 requiring 99,300 new homes to meet the Sunshine Coast’s booming population growth, this equates to 4,000 new dwellings per annum for the next 25 years!
Research indicates that Sunshine Coast property values are on the rise on the back of Billions of $’s of new investment into infrastructure and infrastructure under construction creating new jobs and new industries. This will ensure sustained future capital growth with close to 165,000 people employed on the Sunshine Coast.
32,000 new jobs are expected to be created in the Kawana area alone having a direct impact on further population growth to fill these positions. Anticipation of 100,000 new jobs on the Sunshine Coast over the next 20 years.
Did you know that 14,000 new jobs have been created over the past 12 months in Sunshine Coast!
… and new infrastructure under construction and on the way creating thousands of new jobs well into the future!
Sunshine Coast enjoys 2 distinct markets : Those that want to enjoy Sunshine Coast life style living (beach, sun, sea) and those that are attracted to new jobs and need residential property to live in.
There is a drastic shortfall to cater for this growing need, especially in dwellings ranging from $350k to low $500’s – being homes, apartments, villas, units being developed by reputable developers and builders.
Rentals in Sunshine Coast are on the up, there is a strong need for dwellings to rent, to cater to the need of the increasing population on the back of tens of thousands of new jobs being created now and well into the future.
Vacancy Rate in Sunshine Coast is very low compounded by a low supply of new dwellings with a need for 3,200 new dwellings year on year and remains well below the average Australian vacancy rate.
The Sunshine Coast unemployment figures are now lower than the Queensland average!
Tens of Thousands of jobs are being created today and well into the future as these projects are underway today. With over 40,000 new jobs being created in the area, you can understand the pressure on supply of affordable dwellings to meet the growing need. At least 22,000 of these jobs will be full time and permanent opportunities once construction has completed.
Existing roads and other infrastructure is of a high standard and designed to cope with current and future population growth in the area. Everything in the areas is close by making locations such as Maroochydore highly sought after. The massive new hospital precinct is also within easy reach for the many many employees who will be working there all requiring a place to live.
135,000 people work in the Sunshine Coast, with many of these jobs being in well paid key industries.
The Sunshine Coast has around 298,000 residents and growing by around 7,000 new people or 2.39% year on year growing to just under 400,000 by 2026 (only 10 years from now).
This population growth is increasing pressure on supply of new dwellings, creating a need for 3,200 new dwellings per year! Number of dwellings in 2016 = 126,850 with demand estimated to 164,651 in ten years time. This is a massive 37,801 new dwellings required !
Around 30% of the population Rent their accommodation placing an unusually high demand on houses, townhouses and apartments to meet this growing need.
The dominant age group on the Sunshine Coast in 2011 was 45-49 years. The larges increase in persons between 2011 & 2036 will be the age group 30-40 years. With the largest age group in 2026 anticipated to be 40 – 44 years.
Forecast household types will move from dominance being couples without children to couples with dependents anticipated to increase by around 17,704 households and account for 34.4% of all households by 2026.
A big plus for investment opportunity in Sunshine Coast is the undersupply of new dwellings & a tight rental market.
The supply of Rental Accommodation in Sunshine Coast is very tight setting Rental Yields at around 5% and a low vacancy rate.
Based on the above demographics, there is a dire shortage of apartments, villas, townhouses and homes in the Sunshine Coast.
There is also a shortage of quality House and Land properties to meet the growth of families moving up to Sunshine Coast to embrace new employment opportunities, lifestyle and affordable dwellings.
Having a relatively young emerging demographic profile, young people and young families look to Rent property whilst settling into a new environment. Supply is bordering on not keeping up with increased demand.
Added to this is the fact that the original Sunshine Coast ageing population are now wanting to downsize placing further demand on an already low supply of new dwellings to suit downsizers!
In a recent Herron Todd White Report ; Sunshine Coast sits well in the property clock to achieve a strong return on your investment. See the write up below and the attached Valuation by HTW on Kingfisher …
Every little bit helps. In the new world where the costs of living has risen, we have seen people not only tighten their collective belts, but also really take their time when making decisions. So in this climate of downward trending interest rates, home owners have been given a bit of a breather. That is certainly so for the existing home owners. What about potential new home owners and investors?
We have witnessed increased activity and the effect of the lower interest rates in the sub $600,000 housing market. With the rental market being quite strong, the gap between the rental payments compared to the home loan repayment is not as great as it used to be. For example a $400,000 home would rent broadly speaking for $420 per week to $450 per week. For the same property, if you had a deposit and the loan was around $350,000 with a rate of 5.45%, your repayments are approx $500/pw. A difference of $50 per week to $70! This calculation is also working the same way for investors. They are seeing these good returns (and the opportunity to buy in at or near the bottom of the market), so have started to become more active in the market.
Another sector that has also benefited is the sub $350,000 unit and townhouse market. Its not uncommon to see townhouses selling for $220,000 attracting a rental of $280 per week – over 6.5% gross return. There is resistance in the market to units with high body corporate fees as they impact on returns – holiday let units in managed complexes are therefore harder to sell.
The impact of lowering interest rates on the prestige market is minimal with ‘other factors’ such as business and consumer confidence playing a much bigger part.
A strong local and national economy tends to drive the prestige market.
….we have witnessed increased activity and the effect of the lower interest rates in the sub $600,000 housing market….
When you think about it, this is the same for all the market sectors. The current increase in activity hasn’t just happened after a few interest rate drops. If we don’t have confidence in our jobs with solid incomes, then it doesn’t matter what level interest rates are at!
The markets need to be driven from the ground up, not the top down. We are seeing this by the optimism and confidence that is being created by the new Sunshine Coast Hospital and health precinct. This major infrastructure project has started the ball rolling and for the first time will put our region ahead of the game. Not only from the jobs created but also the people that will move to the area because of high quality health services.
This injection into an economy which is emerging has to be good.
Airport Runway will continue to boost tourism in the region opening up to more airborne visitors on the back of the construction of a new airport runway and also turning Sunshine Coast Airport into an International Airport. This $225 million dollar contract will complete by Christmas 2020
Mayor Jamieson declared the increased air capacity will result in the demand for more hotels, refurbishment of existing ones and a general upgrade to the Sunshine Coast to better serve the increased tourism. Opening up to more Australian Cities as well as international airport hubs will be a significant economic driver for further growth of both jobs and economy on The Sunshine Coast
This airport extension and upgrade is expected to contribute over $4.1bn to the Sunshine Coast’s economy over the period to 2040 and generate 2,230 new jobs whilst also boosting tourism
The new Harmony masterplanned community in Sippy Downs given approval and $5m committed loan funding from State Government to accelerate delivery of infrastructure where AVID Property Group will deliver more than 4,800 homes for 12,000 future residents which will include open spaces and a GFA Town Centre of 15,000 sq/m. Civil works will take a year with home construction to begin during 2017
With the Coast’s population set to significantly increase over the next 20 years, this development will deliver much needed housing to cater for the region.”
Sunshine Coast Mayor Mark Jamieson said the start of the $3 billion project would not only deliver quality housing to meet the growing needs of the region, but provide a boost for the local economy through jobs.
Also property developer John Holland is poised to strike a $200m deal for five super-lots totaling 14 hectares in the new city centre
Airport expansion planned to cater for an estimated 2 million passengers flying into the region
Hotel on the cards with SunCentral Maroochydore, the company established to oversee design and delivery of the new Maroochydore CBD, has been in negotiations with several hotel groups since Expressions of Interest for the core commercial precincts opened