INVESTOR OUTLOOK FOR THE SUNSHINE COAST
The Sunshine Coast has all the ingredients for an investor hot spot, with a tight vacancy rate and growing demand for accommodation. The latest REIQ Queensland Market Monitor report, for the March quarter, reported the Sunshine Coast annual median sale price was $515,000, up 4.7 per cent on last year and 13.2 per cent higher than five years ago. More than 1000 transactions indicate that demand is strong in this area of Queensland and with several major infrastructure projects on the horizon, this is a market with a strong positive forecast for the foreseeable future. The Sunshine Coast University Hospital is due for completion in 2017 and the Sunshine Coast airport runway expansion will bring jobs and visitors to the region. The uplift of these multi-million dollar projects on the region’s economy cannot be overstated. The area is suffering from a lack of new construction of rental accommodation and it is not unusual for this region to have the tightest vacancy rate in the state. In the September quarter survey, vacancies in the Sunshine Coast were just 1.5 per cent. In recent years the vacancy rate has rarely lifted above 1.7 per cent. It is not unusual in this area for an out-of-state investor to buy, with the intention of renting the property out, only to decide that they will live in it! Average rents for the Sunshine Coast are $430 a week for a three-bed house (compared with $420 a week 12 months ago), $340 a week for a two-bed unit and $410 a week for a three-bed townhouse. Local agents report demand is consistent and new stock would be desirable.