Sunshine Coast property market underpinned by population growth: HTW residential
The Sunshine Coast, like most regional property markets, is underpinned by population growth, according to a recent Herron Todd While (HTW) residential report.
The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.
The repot notes Sunshine Coast has traditionally been one of the fastest growing regions in Australia with the latest official population count of 375,271 as at 30 June 2018.
Population growth on the Sunshine Coast has slowed from the halcyon rates of close to six percent per annum in the early 1990s and touched a low point of 1.4 percent in 2011 due to the subdued state of the economy at the time. Population growth has since reverted to an average of 2.4 percent per annum from 2011 through to 2018.
Official state government projections indicate that the Sunshine Coast’s population will reach approximately 583,000 residents in 2041.
Although this implies a strong increase in numerical terms, it envisages that the rate of population growth will only average two percent per annum over the 25 years from 2016 to 2041, considerably less than the 3.2 percent average experienced over the 25 years from 1991 to 2016.
Future growth will nevertheless remain well in excess of the Queensland and national averages, the report noted.
"When looking at the sales volumes of residential properties, we can see that there is a direct correlation to population growth. In circa 2003, we see the high peaks in our population, which is reflected in the sale volumes in the corresponding period.
"Equally in 2011, when the Sunshine Coast was at its lowest growth point, sales volumes were also at their lowest," the valuation firm said.
Within the local economy, main drivers traditionally are the tourism and construction sectors, and for a number of years both these sectors have been performing pretty well, the report noted.
Over the past few years there have been a number of infrastructure projects that have helped to bring a level of maturity to the Sunshine Coast.
The first major project was the Sunshine Coast University Hospital and the continued growth surrounding the university which has benefited both the health and education sectors.
A Wurtulla unit situated within walking distance to the Sunshine Coast University has recently been sold for $416,000.
The two bedroom, two bathroom unit is located at 29/46 Regatta Boulevard (pictured below).
It comes with large outdoor verandah, private balcony, study nook, and spacious dining and living area.
More recently the Maroochydore CBD, Sunshine Coast Airport expansion and the Sunshine Coast International Broadband Submarine Cable project are all under construction and are all massive for the area.
A two bedroom inner city apartment in Maroochydore is currently on the market with $330,000 hopes.
The 5303/5 Emporio Place apartment (pictured below) features open plan living, kitchen with stone benches and one secure car parking space.
It is situated within walking distance to dining, parklands, retail and commercial facilities.
"All these projects will continue to attract people to the Sunshine Coast and drive the market in the future," the valuation said.