The Sunshine Coast economy is going through a transformation into a modern, innovative, and knowledge-based industry. The region has experienced strong growth in various high-value sectors, such as professional business services, innovative manufacturing, and high-tech start-ups. This growth has increased new residential, commercial, and retail projects, surpassing almost every other regional economy in the last 15 years.
A big part of the Sunshine Coast’s growth is infrastructure spending. The region has a pipeline of projects worth $19.5 billion that are either scheduled or completed, which will continue to be a significant growth driver for the area. These projects include the Maroochydore CBD, the Mass Transit Solution, and the International Broadband Submarine Cable Connection.
- The Maroochydore CBD is set to be huge, with the region’s largest greenfield CBD development site, including a $2.1 billion investment expected to generate more than 15,000 permanent jobs and inject over $4.4 billion into the local economy.
- The Mass Transit Solution is estimated to contribute over $3.6 billion to the economy while creating over 9,000 jobs.
- The International Broadband Submarine Cable Connection provides the fastest east-coast connection from Australia to Asia, increasing Queensland’s international competitiveness and stimulating new investment.
But it’s not just business and infrastructure booming on the Sunshine Coast. More and more people are choosing to live here because it’s such a great place to be. It’s long been a popular destination for tourists and retirees, but it has become a magnet for young families and professionals seeking a higher quality of life in recent years. This has led to the housing and unit market remaining 35.5% and 34.6%, respectively, higher in value than at the onset of the pandemic in March 2020.
One of the suburbs to watch is Birtinya, located eight kilometres southeast of the Maroochydore CBD. Birtinya is a critically undersupplied suburb that has seen median house prices grow on average by 7.4% and units by 6.3% per annum for the past five years. A younger and affluent demographic is represented by white collared workers with high incomes.
If you’re considering investing in the Sunshine Coast property market, there’s never been a better time. Vacancy rates in the Sunshine Coast are at 1.6% as of July 2023, indicating an undersupply in rental accommodation. This has led to gross rents climbing by 43% since October 2020, and further increases of 10-15% per annum are expected until 2024. The area has seen yields remain relatively stable, with rents increasing in line with property prices over the same period. As of August 2023, units are yielding 4.7%. We expect the market to continue on its upwards trajectory, with the cycle peak occurring sometime between 2026 and 2029.
Blue Wealth’s Exclusive Property Showcase has just launched a project in Birtinya. If you’re interested in investing in this market or want more information about the project, don’t hesitate to contact the Blue Wealth Property team.