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Property Investment Sunshine Coast
Sunshine Coast may have 26.15% of the population living in rental accommodation, but the region still has one of the best real estate markets for property investment in Australia. According to data, the median listing price of houses in Sunshine Coast is $949,000, marking a 30.53% change over one year and a 54.68% change in two years.
Investors who bought a property in the region two years ago are already reaping big. So, what of you who wants to move into the Sunshine Coast real estate investment sphere now?
There are a ton of great options available for you out there. Let’s dive into the outlook of property investments in Sunshine Coast since 2021, which suburbs you should keep your eyes on, and how you can secure a strong investment using an experienced buyer’s agent such as Amassed.
The Outlook of Property Investment Sunshine Coast
Like most Australian locations, prices of properties in Sunshine Coast soared in 2021. The region marked a record annual growth rate of roughly 32.3%, surpassing the record growth observed in Brisbane’s property market, which recorded 30.37%, Sydney, which topped at 22.36%, and Melbourne, which saw a 12.55% growth.
The sharp increase in property prices in Sunshine Coast in 2021 was attributed to the following factors:
- Record-low interest rates
- Strong internal migration from Victoria and NSW
- Relatively affordable property prices, unlike Melbourne and Sydney
- The “flight from the cities” pandemic migration which saw a population boom in low-density areas
- The increased popularity of Sunshine Coast among retirees
For the year coming to August 2022, despite a change in some of the factors that skyrocketed the prices of property in the Sunshine Coast real estate sector, the market still posted a 17.7% growth, pushing the median house price to $1,094,127.
House prices slightly softened in August, with a 1.52% dip in the August quarter, similar to other drops across Australia. Unit prices dropped by 1.22% over the same quarter, reaching a median of $767,187.
Still, this figure is 18.8% up from the previous year.
According to research data from SQM, property investors renting their property in Sunshine Coast are also experiencing a positive turn, with tight vacancy rates reported across many localities in the region. Many reports indicate a vacancy rate of under 1%. Therefore, due to the high demand but limited supply of rental units, rent prices have increased in favor of Sunshine Coast investors.
The Real Estate Institute of Queensland observes that the Sunshine Coast property market is turning into a buyer’s market with a tight housing supply, which investors should watch in the future.
Why You Should Get a Sunshine Coast Investment Property
Sunshine Coast has remained a robust Australian real estate market because of its strong economic foundation and regional economic strategy, offering it long-term sustainability. The region has a healthy mix of property investment opportunities, including coastal and prime commercial locations highlighted by an idyllic environment and lifestyle.
Sunshine Coasts is one of Queensland’s fastest-growing regions and the top ten significant urban areas in Australia. It’s considered one of Australia’s leading city regions for the 21st century.
Part of the region’s robust economic plan is building itself into a new economy using a 20-year plan. In this plan, property investors get multiple opportunities and new avenues for expansion, business and property portfolio growth, and development.
For the next 21 years, the population in the state is expected to rise to 588,000, requiring 139,000 new homes to meet the demands of the booming population. This translates to about 6,600 new homes annually.
The growth of Sunshine Coast’s real estate market has also been fueled by billions of dollars of investments into new infrastructure that’s creating jobs and new industries. These investments are geared at sustaining future capital growth for the close 165,000 people employed in the region.
For instance, the Kawana area alone is expected to generate 32,000 new jobs, directly impacting further population growth in open positions required to fill these new roles. Over the next 20 years, there is anticipation that about 100,000 new jobs will be created.
The Two Distinct Sunshine Coast Property Markets
Perhaps the most significant advantage Sunshine Coast property market has is the existence of two distinct markets. One serves the Sunshine Coast lifestyle of the beach, sun, and the sea, while the other attracts new jobs and residential areas for the workforce.
There’s already a considerable gap in the market, with a significant shortfall to cater for this property needs, especially in dwellings with property prices ranging from $350,000 to low $500,000s. These dwellings primarily consist of homes, villas, apartments, and units developed by renowned builders and developers.
Rentals are experiencing one of the most significant surges since there’s an immense need for houses for rent to cater to a population increase with new jobs in the area. The vacancy rate remains well below the Australian average.
Therefore, investors have a decent chance of turning high yield and capital growth on their properties.
How to Choose the Best Sunshine Coast Investment Properties
Most investors in Sunshine Coast are geared towards buying rental properties given the undersupply of rental dwellings and a tight rental market. Rental yields can get to around 5% with a low vacancy rate, which is occasionally the case in the region.
Property investors buying into constructed dwellings are banking on continued and sustainable construction of the region’s villas, apartments, homes, and townhouses.
The number of families is also increasing in the region, leading to a greater demand for high-quality houses and land properties that are affordable and offer decent living lifestyles. A good number of young people and families are also seeking to rent property in a new environment.
The buying market is also very healthy, with sub $600,000 homes selling decently quick, especially among individuals or families with home loan repayment plans.
The townhouse and sub $350,000 markets are also performing well, with some townhouses often selling for as low as $220,000. With a rental of about $280 per week, you can get up to 6.5% in gross returns.
Despite increasing interest rates, the booming job market is sustaining this growth in the current and future markets.
Major infrastructures around the region, such as hospitals, also give buyers and renters confidence to settle in Sunshine Coast.
Five Best Investment Suburbs Sunshine Coast
These are some of the top five best suburbs to invest in Sunshine Coast.
Coolum Beach, 4537
Coolum Beach is a hot market currently, thanks to its popularity with fine dining, surfing, twilight markets, and beaches. Therefore, most of the property in the region is used by tourists and people on vacation.
Investors attracted to this suburb spend cash on these vacation homes and properties.
The beachside suburb also has a primary and high school. There’s a good supply of esplanade cafes, boardwalks, and fully patrolled surf beaches. One of the region’s biggest attractions is the magnificent view of Mount Coolum, which overarch the town.
From this suburb, you can go to larger commercial centers by bus or car, with the northern route taking you to Noosa and the southern road to Mooloolaba and Maroochydore. The median house price is about $1.3 million, marking a 36.8% annual growth.
Mountain Creek, 4557
Mountain Creek sits between Buderim lakeside and Mooloolah River. It’s a popular investment choice because of Mooloolaba and the beaches of Kawana waters. Investors, locals, and visitors love the bike paths, lakes, beautiful parklands, and river access surrounding the Mountain Creek residential estates.
There are also several reputable schools in the region, plus a university campus and TAFE within 10 km. There are extensive shopping and business networks on Karawatha Drive towards Mooloolaba.
The median house price is $950k, marking a 29.3% annual growth.
Caloundra, 4551
Caloundra is one of the best property investment options on the Coast, thanks to its excellent shopping and commercial facilities and stunning beaches. The $5 billion Caloundra South housing development has also driven rapid growth in the area.
The general lifestyle in the suburb consists of enjoying the coastal life by wandering in the parklands and beaches. You can also access large commercial centers, arts, sports, quality education, and shopping amenities. Therefore, it’s also great for setting up or buying a residential property.
Caloundra also has a well-established transport network connecting Brisbane and other parts of Sunshine Coast.
The median house price in the suburb is about $925,000, with a modest increase of 4.07% annually.
Buderim, 4556
Buderim is considered one of the most beautiful Sunshine Coast suburbs, sitting right at the region’s heart. It overlooks Maroochydore and Mooloolaba beaches with a bit of rainforest, rural, and undergrowth highlighting the terrain.
Buderim residents love a safe green environment. The suburb has easy access to bike paths, mountain trails, and high-quality schools. You can take a quick drive to the surf, a tranquil walk with your morning coffee, or take the region’s sports, arts, music, and childcare programs.
This suburb is a high-demand area with a median house price of $1,120,000. This is the higher end of Sunshine Coast house prices and the kind of suburb you’ll want to invest in if you have enough money to spend on a very rare investment.
Rental yields are around 4.9% for units and 3.8% for houses.
Peachester, 4519
Easy access to business facilities and Sunshine Coast beaches.
Previously, Peachester was populated by rural farmlands before transforming into an upmarket community famous for its tranquility, wildlife, and peace. You can access all Sunshine Coast facilities in under thirty minutes with access to daily essentials only needing a ten-minute commute to Beerwah.
The median house price in the suburb is $907,500, marking an increase of over 18.8% in one year. Rental returns are around 4.1% for a house.
How a Buyer's Agent Will Help You Purchase an Investment Property for Sale Sunshine Coast
With numerous options to choose from, selecting the best property investment for your needs and budget in Sunshine Coast can be difficult. That’s where a buyer’s agent comes in.
A buyer’s agent takes care of all the work and responsibility of searching for property, researching it, negotiating for it, and buying it on your behalf. Therefore, they act as your strategic partner in your wealth creation plan, interested in giving you the most profitable portfolio with the highest capital growth.
To do this, a buyer’s agent will use different processes based on their experience. One of the most mature and effective ones is the Amassed System developed by Amassed.
Amassed is a buyer’s agent company with an extensive portfolio of properties worth over 7 million dollars. The company’s Amassed System consists of the following steps:
M
Modify
The team modifies, if necessary, your wealth creation plan to ensure you have the best structure in the current market to succeed.
A
Address
If you have any questions or concerns about how Amassed will handle your property purchases, the team can address them here. Then, your wealth strategy gets forwarded to an internal team that starts implementing it.
S
Search
Amassed uses its network of real estate partners to search through hundreds of properties, targeting to score off-market opportunities that cost less to buy but offer the best value to you.
S
Select
The property you select from Amassed’s checklist is thoroughly scrutinized to ensure it meets all the qualifications of a rare investment property.
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Enquire
Amassed takes an extra step and inquiries about the property to ensure it is as listed. It recommends and schedules building and pest inspections before giving the investment a clean bill of health. Then, the negotiator squeezes the most discounts out of the property.
D
Decision
Once everything checks out and all the paperwork is in order, Amassed completes the transaction and purchases the property investment on your behalf.
Use a Buyer's Agent to Make Sound Investment Decisions
Sunshine Coast is a property investor magnet. The region boasts a good demand for houses, great unit and house rental returns, and breathtaking scenery surrounding some of the rarest property investments you can find.
As others flock to pour their money in the vibrant market, take the wiser route and entrust your investment portfolio to an experienced buyer’s agent. They’ll get the best deals from rare off-market opportunities that will bring you the highest yield.
Contact Amassed today and learn how you can turn the highest yields in Sunshine Coast’s real estate market.
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