The time has come for the Sunshine Coast to prosper

It’s been a long time coming, but the Sunshine Coast has finally made it to the Hotspotting list of prime suspects.  

I’ve been a long-time resident of the Sunshine Coast region but have never been able to include it in a top ten hotspots list because, frankly, the market has stunk for years.  

The local tourism economy was struggling, there was over-supply and affordability was poor. The Sunshine Coast market has ranked, alongside the Gold Coast, among the worst performers on capital growth in Queensland over the past five years.  

Noosa, which has never deserved its star ranking with investors, still has apartment prices lower than five years ago.  

But nothing lasts forever. I’ve been watching the Sunshine Coast market for the past couple of years, awaiting the optimum time for investors to consider this location. I think that time has arrived.  

The market is being helped by a combination of factors. The tourism industry is stronger; the market is more balanced in terms of supply and demand; previous price decline has made coast property more affordable; apartments are increasing in popularity with both home-buyers and investors; many FIFO mine workers are choosing to settle on the Sunshine Coast; and some serious infrastructure is being built in the area.  

This last factor is probably the most important. Nothing generates property price growth like major new infrastructure, which generates jobs, economic activity and improved amenity for residents.  

The big-ticket item is the $2 billion Sunshine Coast University Hospital, now under construction. There will also be a $150 million private hospital built in association with it. The Sunshine Coast University continues to expand, with a $37 million engineering learning hub the latest project to be announced.  

That combination of medical and education facilities is always powerful in driving real estate demand.  

There is considerable retail expansion as well, with Lend Lease recently winning approval for a $350 million expansion of Sunshine Plaza, Reed Property Group undertaking a major revamp of the Big Top shopping centre and Coles planning a supermarket in the Sippy Downs Town Centre.  

Big-ticket residential developments include master-planned communities at Oceanside Kawana and Caloundra South.  

The Sunshine Coast market is now showing the first signs of growth for several years. There has been a considerable uplift in sales volumes, which is a forerunner of price growth.  

I believe the best part of the Sunshine Coast for investors to consider is the southern precinct, from Kawana south to Caloundra. This is the area where the key new infrastructure is being built, including new commercial precincts, the University Hospital, the associated private hospital and major residential developments. This is where the new jobs are being generated.  

This is also the precinct that offers the best affordability on the Sunshine Coast.  

Other parts of the Sunshine Coast will show growth also, but the Kawana precinct offers the best combination of affordability and growth drivers of anywhere on the coast.  

Terry Ryder is the founder of hotspotting.com.au