Sunshine Coast dubbed hot property

January 21, 2015

Move over Brisbane.

One of Queensland’s most experienced developers believes the Sunshine Coast is where developers and investors are going to focus their attention in the next 12 months as the supply of apartments in Brisbane continues to increase and vacancies start to rise.

Steele Clark, Director of development, construction and in-house property management company Habitat Development Group, said there was no doubt that the Sunshine Coast property market had turned a corner in 2014.

“The Real Estate Institute of Queensland’s findings that the Sunshine Coast has the lowest rental vacancy rate of all major regions across the state at 1% is consistent with what we’re seeing at the coal face,” Mr Clark said.

“Vacancies in our previous projects have been tracking between 0.5% – 1% all year and rents have continued to increase. There has been such a lack of supply on the Coast for many years and property is still very affordable as compared with the major cities.”

“In Queensland, Brisbane’s inner city apartment market has really taken the spotlight over the past 12 months, but there’s definitely been a change in sentiment recently from both developers and investors. Development sites in inner Brisbane are far more expensive than they were 12 months ago, and we’re noticing some local developers taking advantage of the high prices for sites and selling out to Asian interests and looking further afield.”

“We develop in both Brisbane and the Sunshine Coast and while demand for Brisbane stock really started to take off about 12-18 months ago, we’re now starting to see that interest flow up to the Sunshine Coast as investors start to realise the affordability and value they can get outside the inner city areas.”

Local real estate agent, Lloyd Edwards of Ray White Buderim agrees with this sentiment and believes the growth the market experienced in 2014 will continue into the next couple of years.

“Based on 20 years selling real estate on the Sunshine Coast I can say that the property market is definitely on an upward trajectory given the strong rental returns and anticipated growth in the coming years,” Mr Edwards said.

“Major projects like the completion of the Sunshine Coast University Private Hospital last year and the new public hospital in late 2016 will anchor our job security and prosperity for some time to come.”

“The Australian Housing Outlook 2014-2017*** prepared by BIS Shrapnel on behalf of QBE has forecast a 14% growth in the median house prices on the Coast over the period which, along with low rental vacancies is giving buyers the confidence to invest in the region.”

While Habitat Development Group has projects in Brisbane and on the Coast, Mr Clark believes it’s the Sunshine Coast’s turn to shine.

“The Sunshine Coast region is currently presenting perfect conditions for investors with strong population growth driving demand for housing and game-changing projects like the Sunshine Coast University Hospital and adjacent health precinct, the Sunshine Coast Airport expansion and the development of major town centres in Sippy Downs, Maroochydore and Kawana generating a range of long-term employment opportunities,” Mr Clark said.

Mr Clark’s opinion is supported by a survey recently released by the Sunshine Coast Business Council (SCBC) which found 78 per cent of participants indicated that they would invest in the Sunshine Coast in the future compared to only around 50 per cent of participants showing interest in the last survey in 2013.

The Sunshine Coast Investment Survey 2014, conducted by Urbis, was based on interviews with over 30 chief executives, managing directors, regional directors and business owners of significant local, national and international investment companies.

SCBC Chair Sandy Zubrinich said the research was a positive indication of the opportunities that lay ahead for the Sunshine Coast and the marked improvement was a good outcome.

“We can certainly celebrate that there is a greater willingness to invest in the region and also that that Sunshine Coast was ranked first when participants were asked to identify the Australian regional locations they felt were most favourable for investment currently and in the near future,” Ms Zubrinich said.

“This component within the survey was of course distorted somewhat due to 36.7 per cent of the respondents being local investors, but it was still encouraging to see how well we rated in comparison to 28 Australian and international locations with the Sunshine Coast edging the Gold Coast, Ipswich and Brisbane as preferred investment locations.”

Mr Clark said the rising Sunshine Coast market conditions were evident at Habitat’s $120 million Atrium development at Buderim, which sold out all 126 units in the Norfolk and Kauri stages of the development released last year.

“I haven’t seen this level of buyer interest since 2006. We’re getting good enquiry from both owner-occupiers as well as investors,” Mr Clark said.

Mr Clark said the interest from renters had been similarly high, with all rental properties within the development having already signed up tenants to move in when settlement is reached next month.

“As Atrium reaches completion we’re looking forward to commencing construction of our Central development in the heart of the new Sippy Downs Town Centre, when initial civil works are completed in early February,” Mr Clark said.

“The master-planned town centre is an exciting development with the local council and national developers working closely to build a university town in one of Australia’s fastest-growing regions. There are certainly exciting times ahead for the Sunshine Coast and we look forward to another year of growth in 2015.”

To find out more, please visit www.habdev.com.

// Ends.

Media contact: Maya Gurry, Fresh PR & Marketing, P: 0410 109 102, E: maya@freshprm.com.au

Source:
*RP Data Quarterly Rental Review, RP Data, September 2014.
**Population and Dwelling Profile, Office of Economical and Statistical Research, April 2012.
***The Australian Housing Outlook 2014-2017, prepared by BIS Shrapnel on behalf of QBE, October 2014.

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