As many of our clients have witnessed, The Sunshine Coast property market is currently experiencing rapid price growth. Whilst many of our clients are on the ride of a lifetime many are asking why The Sunshine Coast property market is performing so well.
Property economics #101 always comes back to Supply Vs Demand and the truth is The Sunshine Coast is in a massive undersupply!
But let me take you further into the mechanics of what exactly is happening on The Sunshine Coast.
The rental market on The Sunshine Coast is extremely tight currently. Over the past 12 months the vacancy rate has plummeted to levels not seen in almost 20 years. Our research indicates the current vacancy rates sits at 0.5%. To put that into perspective for those reading, in property circles we consider a vacancy rate of 3% a balanced market.
Therefore, to have a vacancy rate below 3% signifies that there are far greater prospective tenants then there are rental properties. This of course puts upward pressure on rental housing, often resulting in a rapid rental price increase. In the specific case of The Sunshine Coast many of our clients are getting $100 per week more than this time last year. A great result for all indeed.
Now it’s not only outstanding results in the rental market that The Sunshine Coast is seeing. Our clients have also achieved outstanding results when it comes to capital growth.
This severe undersupply has also been reflected in property prices across the Sunshine Coast. Prices across the region are reaching record levels and boast some of the strongest rates of annual growth across Australia.
Data that our acquisition and research team have acquired from Domain indicates that in March 2021 quarter property prices grew by 6.9%. This would usually be considered a great outcome for a 12-month period, let along over 3 months.
This equates to strongest growth for the region in over 17 years.
Yes, record low interest rates and affordability have certainly played their part in the performance of The Sunshine Coast, however as our research team discovered there has been significant infrastructure spending in the region. Our research indicates of $20 billion in infrastructure. This is infrastructure isn’t just the “usual “spending you hear like roads and local community facilities. We are seeing dramatic projects changing the landscape of the entire region. We’ve seen projects like the Maroochydore CBD ($2.1 billion) and The Hospital Expansion which have created over 20,000 jobs in the area. Every major employment sector has infrastructure projects. Health, Medical, IT, Construction, Education, Services.
Our clients have enjoyed tremendous success in this area due the NIA process underpinned by our research methodology. The success of The Sunshine Coast market isn’t a surprise when looking at our research reports of the last five years.
So, you’re probably asking where the research is pointing now? Contact us today to find out.