After many years in the doldrums, the Sunshine Coast looks set to shine.

Positioned at the ‘recovery’ stage in the property cycle, there are many things to like about real estate on the Sunshine Coast.

QLDpropertyClock

Population growth

  • 330,000 permanent residents
  • 6,000 annual increase
  • 10% increase in permanent residential population in last five years
  • Population growth actually accelerating

Underlying demand for property is rising on the Sunshine Coast.

Supply versus demand

  • Need to build 2,200 new dwellings each year
  • Undersupplied by about 1,700 new homes
  • This equates to about 13% of demand or 9 months

New housing supply cannot keep up with underlying demand.

 Residential sales

  • 25% up – detached house sales 2013 versus 2012 calendar years
  • 19% up – land sales
  • 27% up – apartment sales
  • 49% up – townhouse sales

SunshineCoastResSalesSales volumes

As shown in the chart to the right – are increasing on the Sunshine Coast.
More sales are expected during calendar 2014. 

Employment

  • 54,000 new jobs across Queensland last year
  • 10,000 or 20% of these were on the Sunshine Coast
  • 173,000 local workforce
  • Up 20,000 in just 18 months

New jobs are being created on the Sunshine Coast. The Kawana Health Hub is a game changer.

Resale & rental supply

  • Just 350-odd properties to rent
  • Down by two-thirds on just two years ago
  • 1.2% vacancy rate
  • Rents now rising – up $15 per week on last year
  • 7,000 properties listed for resale (under 5% of total residential stock)
  • Stock for resale down 16% on last year
  • Re-sales & especially the Sunshine Coast rental market are tight.
  • $125,000 average family household income
  • Currently 5.1 median house price ratio to disposable income
  • Likely maximum average purchase price set around $490,000
  • Potential lift of about 7% in median Sunshine Coast residential prices

Residential prices

Some potential upside for local residential prices during 2014.

We anticipate prices to rise between 5% to 7% over the next 12 to 18 months. See chart below.

SunshineCoastHousePrices

http://matusikmissive.com.au/2014/01/15/outlook-sunshine-coast/ (20/01/2014)

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