We’re Now A Property Hot Spot
That’s the news spreading out there, We’re Now A Property Hot Spot
(and our secret is out)
The Sunshine Coast is in a location transition phase from a holiday hotspot to a true investor’s haven with huge growth potential. For the savvy investor, buying into this area is a chance to take advantage of the renewed infrastructure, the emerging luxury market, and the subsequent increase in buyers with cash according to the latest research from Place Advisory.
Like the rest of Australia, the region was significantly affected by the Global Financial Crisis (GFC),” Lachlan Walker, Place Advisory Director said. “It had an extremely adverse effect on this area, causing sales volumes to diminish dramatically, representing only 30% of the prior highs and price growth remaining subdued long after the economic crisis was over.
“Although the Sunshine Coast is supported by multiple economic pillars including tourism, construction, manufacturing and retail, these areas were all hit hard by the GFC, leaving the region struggling to recover.
“Over the past couple of years the Sunshine Coast residential market has made solid progress however, and there are numerous factors which will see it set to peak in the next coming years.” With the current multitude of infrastructure projects currently underway, the Coast will become a more sustainable long term investment area.
The Sunshine Coast University Hospital (SCUH) is the largest project in the region, and began construction last year. This $2 billion development will generate 2,000 construction jobs, and 3,500 permanent jobs once completed in 2016, and is anticipated to inject approximately $680 million a year into the local economy.
Meanwhile, the Coast Connect is a $350 million State-funded public transport upgrade to assist in the stimulation of economic growth and to cope with the expected population boom. Development will begin in areas that have been identified as high priority, and will conclude in those areas of a lower priority. It is expected to be completed in stages from 2014- 2019.
The final project is the Airport Expansion Project; a $436 million construction of a new runway, new passenger terminal, new retail facilities and expansion of the existing aviation business precinct. This project will provide 5,000 new permanent jobs upon completion, with an injection of around $1.6 billion in regional economic benefit between 2015 and 2050 due to increased tourism, business growth and freight capacity.
Currently, 90 per cent of houses sold in the Sunshine Coast are being purchased by local residents, while a further nine per cent are being sold to interstate buyers and one per cent of homes are being purchased by international buyers. As the Coast residential market enters its next phase, owner occupiers are sure to return to the market, seeking the lifestyle they had to forego in previous years.
And the final word from Deloitte’s analysis summed up the Sunshine State’s outlook as: “better than you think”.