Why Invest in Property on the Sunshine Coast in 2023 and Beyond?
- Date Listed 17th May
- Written by Tanja Le Roux
With picturesque beaches, amazing weather and a laid-back lifestyle, the Sunshine Coast has quickly become one of Australia’s most sought after locations. These days, however, the Coast is much more than a holiday destination. Coming from big cities, small towns, overseas and all over, people are moving to the Sunshine Coast into droves.
According to estimates released by the Sunshine Coast Council, the local population is tipped to grow by more than 500,000 by the year 2041. As a result, a large number of low, medium and high density dwellings will need to be constructed – which is all the more reason to get in early and secure a property before it’s too late.
Given the increase in local infrastructure and amenities, a growing number of renters are seeing the Coast not only as a place for later in life, but also a place where they can study, work and raise a family. When you combine this with a steady increase in property prices, the future is very bright for investors.
How is the Market Looking in 2023?
The Sunshine Coast is now the most popular area for those moving away from Australia’s capital cities. In fact, the Coast now accounts for 37 percent of all urban to regional movement in the country.
This rise gained serious momentum in 2020, when thousands of Australians made the interstate move for a new life in the Sunshine state. Today, the property market continues to move forward, grow and expand. As property managers based on the Sunshine Coast, we’ve seen this uptake first-hand.
So, how does this all affect the rental market? The recent influx of population now includes a growing number of younger professionals and families, which represents a contrast to the traditional sea change move associated with retirees. As such, vacancy rates for rentals have remained remarkably low.
If you’re a prospective property investor, low vacancy rates are a positive sign that allow you to command a good rental price, as well as secure new tenants with greater ease. Even if the vacancy rates rise from their current levels, the demand for rental properties will still be some of the highest in all of Australia.
Property Trends to Keep an Eye On
Median House Prices
Across the board, the Median Price for properties on the Sunshine Coast is approximately $950,000. However, a number of areas within the region have an average that falls below this figure. This includes Nambour and Caloundra West, which are two of the suburbs we would personally recommend to any property investor.
Even despite the nationwide rise in interest rates, the median price for Sunshine Coast properties was able to bounce back and rise once again after a dip in 2022. If this trend of steady growth continues, this only adds to the existing investment potential across the entire region.
The Great Debate – Sunshine Coast vs Gold Coast
Roughly two hours apart, the Sunshine Coast and Gold Coast sit at opposite ends of Brisbane. While both offer fantastic weather, beachside living and a range of amenities, the Sunshine Coast is actually outpacing its counterpart in terms of median property price.
Figures released in June 2023 listed the average price for Sunshine Coast properties at $917,497, roughly $79,000 thousand higher than the Gold Coast.
When you also consider the trends of population growth and investment into local infrastructure, the demand for property on the Sunshine Coast is looking likely to expand further in the years to come.
Suburbs and Hotspots We Recommend
Recently we wrote an article centred on the ‘Top 7 Property Investment Hotspots on the Sunshine Coast’. This piece highlighted a number of exciting areas with opportunities for both low and high density property investment. Our 7 Hotspots were
Nambour
These suburbs, which include both beachside and inland areas, all represent the perfect mix of current price and trends of future growth. Some of the areas listed above have a median price significantly lower than the region’s overall average, which can be a viable alternative for investors that are priced out of the game in the most popular destinations.
Consistent buyer demand and low vacancy rates have also made these destinations a viable source for rental yields. Of course, we can’t forget the famous views and stunning scenery – what’s not to like?
Interested in these areas yet need help to navigate the housing market? We recommend reaching out to rental agents in Buderim, Nambour or any other specific suburb that has captured your attention.
Local Infrastructure Projects
In order to match current and future population growth, the Sunshine Coast will be home to a wide range of major infrastructure projects. From roads to public transport, schools, and other amenities, these developments will only add to the region’s liveability, also catering to those who want to live on the Coast and commute to work in Brisbane.
What may future infrastructure projects mean for property investments? Current suburbs with lower property prices, for example, will be further developed and therefore, be likely to experience strong buyer demand moving forward.
In the meantime, anyone using a Sunshine Coast home as a property investment can also partner with property managers. This is a great way to secure profitable rental yields, find the perfect tenants, manage finances and get expert assistance with any tenancy related issues.
How is the Current Demand for Housing?
Home Buyers
The demand for homes has remained consistent for many years, both on the side of prospective renters and investors.
Budermin has been a popular home-buyer destination, especially within the last 12 months. 452 homes have been sold, and typically only stay on the market for 44 days. As for units, 227 have sold within the last 12 months, frequently only snapped up within 41 days.
Nambour is another popular location, with 169 homes sold in the last 12 months and averaging on the market for only 39 days. 71 units were sold within the past 12 months and bought within 29 days. The Sunshine State isn’t slowing down anytime soon.
Renters
Based on vacancy rate figures released this June, the Sunshine Coast certainly has no shortage of renters. As an investor, this means that you will rarely struggle to fill open houses, units or apartments. According to SQM Research, the current vacancy rate is 1.6%, meaning that only 1.6 percent of rentals put to market fail to secure new tenants. As such, the opportunity for rental increases and greater rental returns only increases further.
Another key driver for rentals has been the increase in apartment and unit developments. As more higher density properties are added to the Coast, more renters will naturally be attracted to the area. Alongside the enviable coastal lifestyle, investments into public transport and other infrastructure projects also continue to make this region more viable for prospective renters.
What Is The Median Property Price?
Median price is a constantly evolving statistic that varies from suburb to suburb. There is also a natural variance between median house prices and median unit prices.
While we can’t cover every area, we can still highlight 5 localities that represent an excellent opportunity for property investment.
- Sippy Downs has a Median Price Snapshot of $775,000, with $420,000 the average cost for units since August 2022. A 3-bedroom home ranges up to $700,000, allowing buyers to purchase a great property for an affordable price.
- Alexandra Headland properties in the Sunshine Coast average $1,675,000, with $670,000 as the Median Price for units. A 4-bedroom family home ranges up to $1,965,000.
- Nambour has a Median Price of $656,200 the price range for units averaging $415,000 and $646,000 for a 3-bedroom home. Homes and other affordable properties are typically on the market for 29 days.
- Mooloolaba averages $1,390,000 for a home, $712,000 as the Median Price for units, and $1,215,000 for a 3-bedroom family home.
- Caloundra has a Median Home Price of $870,000, $646,000 as a snapshot for units, and a 3-bedroom unit ranging around $740,000.
The Importance of Property Managers
Purchasing an investment property is both exciting and a monumental achievement. However, the work doesn’t stop there. In order to make the ongoing lease as smooth and stress free as possible, you are best served to work with experienced property managers. Your property manager not only helps you to find great tenants, but they also assist with property listings, maintenance, rent collection, and much more.
From first-home buyers to seasoned investors, we provide an all-inclusive property management service designed to make you feel both confident and secure in your investment. Our staff know rental properties back to front and will always be there to answer any questions.
We have dedicated property managers from Palmwoods to Caloundra and everywhere in between. Speak to us now!
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