Monthly Archives

December 2019

sunshine coast property market growth

The Sunshine Coast – A Diverse, Growing Economy

By | Property News
sunshine coast property market growth
The Sunshine Coast is on the cusp of a huge economic boom. Significant investment in the region by local, state and federal governments, coupled with private business investment, is positioning the Sunshine Coast as the next fastest-growing regional centre in Australia. We’ve taken a dive into some of the major factors that are likely to contribute to the Sunshine Coast’s rise over the next decade.

Olympics bid

South-East Queensland’s bid to host the 2032 Olympic Games is likely to drive significant investment in local infrastructure throughout the region. The Sunshine Coast stands to benefit from this investment, particularly as the current Queensland State Government seems committed to spreading events from the Whitsundays down to the Gold Coast.

Due to recent changes instituted by the International Olympics Committee, regions are now able to make bids for the games, which makes South-East Queensland’s bid far more likely to succeed. It also ensures that whichever government is in power during preparation for the games is more likely to allocate funding throughout the region, which stands to benefit the Sunshine Coast.

Infrastructure boom

The Sunshine Coast is currently undergoing a significant infrastructure boom that will better position it to handle upcoming population growth throughout the 2020s and 2030s.

Maroochydore CBD Development

Maroochydore is positioning itself as one of Australia’s largest and fastest-growing urban centres. A complete redevelopment of the new CBD will cement Maroochydore’s position as the hub of the Sunshine Coast, with closer proximity to Asian trading partners and a high-speed data connection providing it with independent access to the rest of the world.

Sunshine Coast Airport Expansion

The Sunshine Coast Airport is undergoing significant investment in a new runway and requisite infrastructure to boost capacity and improve exposure to the wider world. The new runway is expected to be completed in 2020 and will greatly improve tourism and work accessibility.

Sunshine Coast Health Precinct

The Sunshine Coast Health Precinct, incorporating the Sunshine Coast Health Institute, Sunshine Coast University Hospital and Sunshine Coast University Private Hospital, constitutes one of the largest ongoing health infrastructure investments in the country. Expectations are for the Health Precinct to drive around $447 million per year in contributions to the Sunshine Coast economy.

Other projects

There are major new residential developments the length of the Sunshine Coast, in addition to accompanying commercial developments that are being constructed to serve both existing needs and future requirements. New technology precincts will serve to take full advantage of the submarine cable that is connecting the Sunshine Coast with the wider world.

Employment growth

All of this investment and development is accompanied by an enormous jobs boom that is unlikely to die down. As construction jobs arise during the infrastructure development phase, more roles will follow as businesses and workers shift into the new technology, health and commercial districts. This cycle of investment and job creation is likely to last long into the future as the Sunshine Coast continues to grow, creating a self-fulfilling loop of investment and growth.

Shifting economy

The Sunshine Coast, a region once largely reliant on tourism, is rapidly accelerating towards a diversified future with a host of different industries taking centre stage. Health and technology are likely to play a large role in the future of the Sunshine Coast. As the local economy continues to strengthen and attract a range of business types, economic conditions will continue to improve and become vastly more robust.

As the economy diversifies, it will attract new residents and the continued demand for employees will place upwards pressure on residential real estate prices. The state government recognises this and appears committed to driving continued growth in the Sunshine Coast region in an effort to more evenly spread population growth throughout south-east Queensland rather than concentrating it in existing high-density areas.

Population shifts

The Sunshine Coast is experiencing significant population shifts. While in the past it was home to a slightly older population than many other areas in south east Queensland, recent years have seen a slight shift in the demographics of the region towards younger age brackets. As employment opportunities in the area continue to grow, this demographic shift is likely to become more pronounced.

The bottom line

The Sunshine Coast is Australia’s ninth most populous region. It’s attracting more investment than ever before. This huge boom in infrastructure investment is driving employment growth, further residential investment and a bright future for the region. Now is an excellent time to dive into the Sunshine Coast property market, whether as an investment purchase or a forever home – the Sunshine Coast has something for everyone.

sydney property boom brisbane growth

Sydney’s Property Boom is Brisbane’s Gain

By | Architecture
sydney property boom brisbane growth
A huge first weekend under the hammer for Sydney in December portends a coming upswing of interest in Brisbane property. The first weekend in December saw a similar result to the final Saturday in November, sending a strong signal to the rest of the country that the property market is rapidly stabilising and beginning a fresh ascent to new highs.

Sydney auction clearance rates

November 30: 81%

December 7: 79%

Clearance rates hovered around 45% at this time last year. Buyers are hot to trot and sellers are motivated to shift properties fast and acquire liquid capital. Having watched the vagaries of the property markets quite closely over many years, we’ve become accustomed to the signs of an upswing in the making.

Sydney is not done yet

Sydney is in great shape right now, and the coming weekend will be the true testament to the shifting trends in Australia’s hottest property market. We firmly believe that the Sydney housing market has plenty of room left to expand, with the prevalence of cheap debt likely to continue to push buyers into the market and high prices likely to encourage sellers to make their move.

Interest rates

Low interest rates globally are contributing to hot markets across the board. As other investment vehicles such as equities become increasingly over-priced, the potential returns (and security) present in the property market become increasingly attractive to investors. Combine these attractive and arguably more stable returns with record-low interest rates and it’s little wonder that money continues to pour into the Australian property market.

The official interest rate will close out the year at 0.75% and it’s anyone’s guess as to where it will go throughout 2020. The Reserve Bank of Australia (RBA) is on record (as of December’s meeting’s minutes) that a slight upswing in the rate of GDP growth is expected towards the end of 2020 and into 2021.

The RBA flagged the fluctuations in new dwelling construction numbers as an area of uncertainty, alongside slow growth in household disposable income. However, in a positive signal, the RBA recognises that the Sydney and Melbourne market is in the midst of a turnaround, despite increased restrictions on the ability of people to borrow to invest in property.

Brisbane’s hottest property growth areas

So, if we expect the turnaround in Sydney to drive renewed interest in the Brisbane property market, where is that interest likely to manifest itself? According to the Residential Property Research Group, there are a few standout suburbs in Brisbane that are expected to benefit considerably from the growth in property prices over the next three years.

Red Hill

Red Hill is one of Brisbane’s most popular inner-city suburbs. It’s seen fairly impressive growth over recent years with a current median house price of over $850,000. However, significant growth is expected over the coming years, with experts tipping an increase in the median house price of over $200,000.

Keperra

Keperra is a hot growth suburb for Brisbane, with extensive investment in local infrastructure and growth in local business over the past five years. With a current median house price of just over $535,000, Keperra is an affordable location for most people on or around the median Brisbane household income. Keperra is projected to have an increase in median house price by around $130,000 over the coming three years, making it one of the hottest growth suburbs in Brisbane.

Other Suburbs

The Residential Property Research Group has identified a number of other suburbs that are currently very affordable but for a number of reasons are expected to have significant increases in median prices that greatly outstrip the growth rate of nearby suburbs. Some of these hot growth suburbs include:

  • Mount Gravatt
  • Rochedale South
  • Arana Hills
  • Morningside
  • Chermside West
  • Tingalpa

Build or buy?

The question of whether to build or buy is as old as the residential property market itself. The fact is, it’s very situation dependent. We always recommend building a property simply due to the flexibility of options and the ability to lock in the long-term value growth of a brand-new home.

Your options for building a new home in Brisbane are broader than ever before, with knock-down rebuilds, greenfield builds and house and land packages giving you a variety of methods to get a new house built. Building new ensures that your property is positioned to capture the higher end of property price increases over the coming years.

Get the right advice

If you want to know whether you should build a new home, or whether you’re in a financial position to do so, speak with us. We’re always happy to give honest advice to help people make the right choice for their own situations.