What’s Driving Property Values on the Sunshine Coast?

By Admin on November 27, 2024
Categories: News, Property Trends
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The Sunshine Coast has become one of Australia’s most desirable property markets. With its stunning beaches, laid-back lifestyle, and growing infrastructure, it’s no surprise that property values on the Sunshine Coast have seen a steady rise in recent years. But what exactly is driving these increases, and how can you make a smart investment in this thriving market? 

Below, we’ll explore the key factors influencing property prices in the region and offer insights to help you make informed buying decisions. If you’re considering buying your dream home here or investing, a Sunshine Coast Buyers Agent can be a valuable ally in navigating the market.

Buyers Agent Jarad Candlin commented on the growing appeal of the region: ‘The Sunshine Coast is great for raising children. Since many of the people who move here come for the same reason, the community is very welcoming to families and offers numerous activities up and down the coast.’

1. High Demand for Coastal Living

The Sunshine Coast’s appeal lies in its unique coastal lifestyle, attracting both locals and interstate buyers seeking a sea change. This high demand for homes near the beach, especially in areas like Noosa, Mooloolaba, and Maroochydore, has significantly boosted property values. Families, retirees, and young professionals are drawn to the Sunshine Coast’s relaxed atmosphere, making it a top destination for those wanting a balanced work-life experience.

Maroochydore, is undergoing significant development with a new city centre, making it an excellent area for both residential and commercial investments.

Buderim boasts lush landscapes, good schools, and a strong community feel, attracting families and investors.

Nambour, with its ongoing revitalisation, offers great value and potential for capital growth due to its accessibility and amenities.

Sippy Downs, home to Sunshine Coast University, benefits from a steady rental market driven by students and families.

Caloundra, with its stunning beaches like Moffat and Golden Beach, provides a mix of short-term holiday rentals and long-term residential options.

Mooloolaba is a tourism hotspot with growing amenities, perfect for holiday rentals.

Meanwhile, Noosa Heads remains a premium market, offering strong returns thanks to its lifestyle appeal and tourist demand.

Aaron Thompson, from Cohen Handler’s Sunshine Coast team, shared his opinion about the best beach in the region: ‘In my opinion, Moffat Beach is the best, followed closely by Peregian Beach. It’s very subjective as people get territorial but you could also add in Buddina, Warana, Alex Heads, Mooloolaba, Noosa and Sunshine Beach. I find a lot of locals (myself included) really build their lifestyle around the suburb they live in, when I was in Moffat Beach I rarely actually left Moffat Beach.”

Local Buyers Agent Steph Cox commented “Demand for property on the Sunshine Coast has surged since 2020-2021, as people got sick of being locked down or realised the importance of lifestyle and personal wellbeing. I am working with buyers and young families that are looking for their dream home here, and take great pleasure in helping them find the right property.”

2. The Sunshine Coast’s Growing Infrastructure and Development

Over the past decade, the Sunshine Coast has seen substantial infrastructure development, contributing to the rise in property prices. Projects like the expansion of the Sunshine Coast Airport, the Maroochydore CBD revitalisation, and improved transport links have increased the region’s accessibility and attractiveness. These developments are not only bringing more residents to the area but are also attracting businesses and tourism.

Direct Sunshine Coast Rail Line: This proposed rail line plans to connect Beerwah to Caloundra, with future extensions to Maroochydore. The project has received a total federal contribution of $2.75 billion, with the first stage expected to be operational by the 2032 Olympics.

Beerburrum to Nambour Rail Upgrade Stage 1: A $1 billion project aimed at duplicating the rail line between Beerburrum and Beerwah, straightening sections between Beerburrum and Glass House Mountains, and upgrading associated facilities. Major works are set to commence in 2025.

Kawana Waters Master Planned Development: Covering 1,613 hectares between Currimundi Creek and the Mooloolah River, this project includes residential, commercial, and recreational facilities to accommodate future growth.

Maroochydore City Centre Project: This development aims to establish Maroochydore as the major economic and employment centre of the Sunshine Coast, featuring new commercial, residential, and public spaces.

Sunshine Coast Stadium Expansion: Plans are underway to expand the stadium to meet the requirements for hosting events during the 2032 Olympics and Paralympics. However, the project is currently under review, causing delays.

Mooloolaba Foreshore Revitalisation Project: The Sunshine Coast Council is investing in creating more beachfront parkland, new community facilities, improved beach access, and enhanced coastal protection in Mooloolaba.

3. Tourism and Holiday Home Appeal

Tourism remains a significant driver of property value growth on the Sunshine Coast. As a top holiday destination, the area attracts thousands of tourists each year, many of whom fall in love with the region and decide to invest in a holiday home.

According to visitsunshinecoast.com, a total of 4.2 million visitors travelled to the Sunshine Coast in the 12 months to September 2023, including a record 2.5 million holiday visitors, up 1.7% compared to the year before and up 12.9% compared to 2019. With this in mind, there’s no doubt that the Sunshine Coast property market and economy is benefiting from a tourism uptrend.

4. Limited Land Supply

One of the key factors contributing to rising property values on the Sunshine Coast is the limited availability of land, particularly near the coast. Strict development controls and a focus on preserving the region’s natural beauty mean that coastal properties are at a premium. This scarcity of land creates competition among buyers, driving up prices for properties in prime locations.

5. Strong Local Economy and Employment Opportunities

The Sunshine Coast’s local economy is flourishing, with growth in sectors like health, education, tourism, and construction. As the region becomes more self-sustaining, with a variety of employment opportunities, more people are choosing to live and work locally. This has driven steady population growth, which in turn supports a robust property market.

Between 2011 and 2021, the Sunshine Coast’s population grew by over 79,000 people, marking a 30% increase. This growth was primarily driven by migration, with over 80% of new residents coming from other parts of Queensland, other states, or overseas. Projections indicate that by 2046, the population could exceed 540,000, necessitating over 234,000 dwellings to accommodate the increase.

The Sunshine Coast has seen a surge in interstate migration, particularly from buyers leaving cities like Sydney and Melbourne in search of a better lifestyle. This trend has increased demand for properties, particularly larger homes with outdoor space and proximity to nature. The desire for a healthier work-life balance has seen many families and professionals relocate to the region, pushing up property values.

As property values on the Sunshine Coast continue to rise, now is a great time to explore the market and find your ideal home or investment. With the right guidance and a strategic approach, you can secure a property that not only suits your lifestyle but also offers solid returns in the years to come.

Ready to Buy On The Sunshine Coast?

Whether you’re looking to buy your first home, next home or dream home, our team of Sunshine Coast Buyers Agents have the experience and market knowledge to help you navigate the plethora of beautiful suburbs in this region.

We help buyers navigate their property journey with confidence, right from initial search to settlement and beyond.

Learn more about what a buyer’s agent does in this article here. Contact us today to learn how our Sunshine Coast Buyers Agents can help you secure the right property at the right price