Top 7 Property Investment Hotspots on the Sunshine Coast

With stunning beachside views, thriving local communities and plenty of places to explore, the Sunshine Coast is one of Australia’s most sought after areas. Given all these factors, it’s little wonder why the region represents a great investment opportunity.

Whether you’re a seasoned investor or venturing out for the first time, we’re here to showcase 7 unmissable investment hotspots on the Sunshine Coast.

Please keep in mind that this list is not ranked in terms of best to worst – all of the suburbs listed below are filled with exciting opportunities for future investment. As seasoned property agents on the Sunshine Coast, we’ve seen first-class properties all the way from Sippy Downs to Buderim, Nambour and more.

Trends in the Local Market

From Surfer’s Paradise to the Sunshine Coast, a growing wave of Australians have embraced a sea change and entered the local Queensland markets. This trend only increased during the height of the global pandemic, where record numbers flocked to the Sunshine Coast for a new start.

Given this major population increase, there has also been a growing demand for residential properties. All in all, these factors have put the Sunshine Coast on the map as one of the country’s best areas for real estate investment.

What Sets the Sunshine Coast Apart?

So, why are so many people entering the local property market? The Sunshine Coast is a unique stretch of coastline that offers a lifestyle that is almost incomparable to any other corner of the country. While pristine white sand beaches lie at your doorstep, you are also surrounded by lush rainforests, nature, restaurants and attractions.

In recent years, the addition of key infrastructure projects and local amenities have also made a sea change more viable than ever before. This means that if you were to own rental properties, everyone from families to younger professionals are viewing this area as much more than a holiday destination.

Looking to invest? Here are 7 areas and suburbs that we personally recommend.

1. Buderim

From humble beginnings as the Coast’s first ever town, Buderim is now a thriving urban centre with countless amenities and investment opportunities. Although it is not a beachside suburb per se, the local mountains, parks, golf clubs and old style shops have all made it highly sought after.

Both the median house price and median unit price have continually grown, including a consistent rise over the past 3 years. As it stands today, the median price for a 4 bed house stands at $1,100,000, while median price for a 2 bed unit has also reached a figure of $520,000.

How might this look in terms of an investment property? A house in Buderim may rent out for $750 per week, while 3 bedroom units translate to $575, leading to annual yields between 3.9 to 4.8%.

2. Sippy Downs

In 2020, the suburb of Sippy Downs experienced a dramatic rise in popularity. As a suburb of Buderim, this area is home to UniSC, the Mooloolah National Park, and overall, surrounded by breath-taking nature. This area also features a number of higher density developments that are a great choice for your next property investment.

On average, units in Sippy Downs can provide rental yields of approximately 5.5%, while houses have a rental yield of 4.4%. Units and apartments are particularly popular and this is reflected in the rise of median sale price. Over the past 12 months, local units have increased 13.5% in value.

Both the proximity to the university and the laidback lifestyle attract a consistent flow of renters. Today, around 38% of the Sippy Downs population is renting.

If you’re currently interested in this area, we have local property managers and agents with a wealth of knowledge. We have experienced rental agents in Sippy Downs that can help you to find reliable tenants and manage the lease moving forward.

3. Alexandra Headland

Often shortened to ‘Alex’, Alexandra Headland is one of the Sunshine Coast’s most desired beachside destinations. As a result, the median prices for houses is higher than the other areas we’ve covered so far. This locality also has a consistently high demand with steep competition from other buyers – meaning that if you own a home, there’s certainly no shortage of interested buyers or tenants.

Although the median house price has dipped over the past year, unit trends have remained strong. With a growing number of smaller dwellings on the market, this popular suburb has become a great opportunity for both seasoned and first-time investors.

Rental prices in Alexandra Headland have risen 7.6% over the past 12 months, translating to an average yield of 4.8%. The competition can be high for rentals in these seaside suburbs, which is all the more reason to partner with experienced property managers.

4. Nambour

Although seaside suburbs have their undeniable benefits, many renters also love Queensland’s world-famous forests and native wildlife. With that in mind, let’s take a turn back inland. Nambour is another area west of the coast with real opportunities for property investors. While local beaches are easily within reach, Nambour is nestled in the leafy surroundings of the Blackall Range.

Across the board, this town has countless affordable properties with real long-term prospects. These opportunities include family friendly houses and units with strong yields ranging from 4.7-5.2%. In fact, Nambour was even recognised by Domain.com as one of the best ‘under the radar’ areas for home buyers in the entire Sunshine Coast region.

5. Mooloolaba

Situated 97 km north of Brisbane, Mooloolaba is a stretch of paradise with idyllic beaches that are consistently mentioned amongst the best in all of Australia. While this area is a major holiday destination, there are still great opportunities for investors.

Units in Mooloolaba offer a median rental yield of 4.7%, with rent prices continuing to trend in an upward direction. When compared to the compound growth rate for houses (4.9), unit prices have also risen 13.5% since 2018. Increased buyer demand for these smaller dwellings is a good indication that annual growth will continue to rise in the coming years.

Vacancy rates of 0.97% are another encouraging figure. For reference, a vacancy rate of 2% or lower means that rentals are in very high demand and you won’t struggle to find tenants.

6. Caloundra

Located on the southern end of the Sunshine Coast, Caloundra is right next to the iconic Golden Beach, as well as Bribie Island. This location also allows for fairly easy access to the city of Brisbane.

In contrast to areas like Buderim and Sippy Downs, median property prices have actually declined in the Caloundra area. However, this dip has come after a sustained period of growth from late 2019 to 2022. On the rental side, more than 135 units have been leased, with hundreds more renters looking to secure a spot every month.

As an investment opportunity, this means that there is a consistent demand for rentals in this stunning beachside area. The recent dip in prices also represents the chance to get in while the iron is hot and yield great returns when pricing trends increase in the long run.

7. Caloundra West

Moving along, the Caloundra West combines easy access to the beach and the appeal of the inland areas. Filled with local parks and residential properties, this suburb is perfect for young families, young professionals and others looking for a more laid-back lifestyle.

Like its beachside neighbour, there is a healthy market for units and apartments across the suburb. With a median time of 17 days on market before the lease, rentals are generally snapped up pretty quick.

If you’re investing here, it always helps to partner with property agents based in Caloundra West. This way, potential tenants are screened and various aspects of the lease are finalised with ease.

Work with the We Do Property Team

As you can see, the Sunshine Coast is full of suburbs with exciting investment potential and opportunities for meaningful growth. At We Do Property, we’ve seen the ebbs and flows of the local property market first-hand. We’re immersed in its expansion and growth, so we’re well-equipped to help you navigate it all.

Get in touch and speak with one of our dedicated property managers today.