17 Jun This Australian Region Needs a New Suburb Each Year to Meet Demand
If you can identify and purchase the right property, the Sunshine Coast continues to top the list of Australia‘s best property investment locations. While like many other locations, it has taken a recent boost coming into 2021, what is happening on the coast has been building for years and is not an isolated event.
Through sustained commitment to localised investment in the area including a brand new Central Business District and several new masterplanned suburbs, the Sunshine Coast has emerged as not only a holiday and lifestyle destination but a business one too, the effects of which can be seen in a swathe of interstate migration from the country’s major capital cities.
The market is tight. The current undersupply of dwellings is estimated at 6,500 and projected to grow to 8,500 in the next five years.
“Housing demand on the Sunshine Coast is so great, not only does it need to see another land development equal to Aura in size as a minimum, it needs almost three Auras vertically, during the next 20 years to keep up.”
– Mal Cayley, Directive Collective COO
What’s driving the demand?
A recent report by the Regional Australia Institute identified four “game-changing”, job-creating projects that are driving migration to the Sunshine Coast and in effect creating this unprecedented demand in recent years. They were…
- Sunshine Coast Health Precinct;
- Maroochydore CBD;
- Sunshine Coast Airport; and
- The International Broadband Cable
Why This Matters to Property Investors
High demand and low vacancy rates not only remove the worry that your property won’t always be filled, competition for sought after properties between prospective tenants will also drive up your rental yields and make your cash flows even healthier.
For instance, if a tenant pushes their offer up by just $30 per week above the listed price to secure your property, that’s an extra $1,560 a year in rental yield with no extra effort on your part. We can’t stress enough how important local demand is for your cash flows and the Sunshine Coast market is a perfect example of that.
“We’re in for a strong ride for the next couple of years — land prices, particularly in those supply constrained growth corridors, will skyrocket.”– Bruce Harper, AVID Property Group Queensland general manager
Looking for more detail?
Call us any time on (07) 3871 2500 or email firstname.lastname@example.org to discuss how investing in Sunshine Coast property could help your property portfolio. For a summary of investing on the Sunshine Coast which includes info on some of its key growth drivers and recent investment activity download our Sunshine Coast 2021 Investors Guide here