MARKET REPORT: SUNSHINE COAST

Property on the Sunshine Coast is taking off.

Demand is being driven by major infrastructure projects including the upgrade of the Sunshine Coast Airport which this month received a $181 million boost by the Federal Government.

It would come on top of $1 billion poured into the region by the state and federal governments to widen the stretch of the Bruce Highway to six lanes from Caloundra to the Sunshine Motorway, the massive boost expected from the opening of the $1.8 billion hospital next year and property developments at Palmview and Caloundra South worth billions of dollars.

The fight is now on to get more of the highway upgraded and the rail line duplicated.

The council is also working on having Australia’s newest undersea internet cable come ashore on the Sunshine Coast, as well as a hi-tech new CBD.

Cr Jamieson said upgrading the council-owned airport with a new 2450m by 45m runway would open it up to international flights from Asia, with projections it would create more than 2000 jobs and inject $4 billion into the regional economy by 2040.

The Sunshine Coast continues to deliver record-strong population growth, according to (Sunshine Coast Council’s portfolio councillor Christian) Dickson, who noted there had been significant development recorded from Caloundra in the south through to Peregian Springs in the north, and out into the hinterland towns.

“In 12 months the Caloundra area received 380 building approvals to the value of $91,198,044, whilst Peregian Springs … received 361 building approvals to the value of $100,667,833,” he said.

“Significant development activity is evident across the entire Sunshine Coast region … the hotspot map identified five areas that have recorded the highest value of building activity with over half a billion worth of building approvals in the last year – contributing to over $1 billion of building activity on the Sunshine Coast.

Along with the Gold Coast, the Sunshine Coast was the strongest performing area in the state over the year to June.

Price growth on the Sunshine Coast and Gold Coast is largely down to local factors.

On the Sunshine Coast, the effect of the new University Hospital on the property market cannot be overstated. That one major project has brought a lot of confidence to the area and a huge injection of professional jobs once it opens next year.

We’re also seeing local upgraders and seachangers from Sydney and Melbourne buying for a lifestyle change now, or holiday homes with a view to living there in retirement. There was 4% growth in house prices and 4.5% growth in apartment prices over the year.

Amongst the developers making the move north is Brisbane-based developer Mosaic Property Group is making the great seachange, extending its reach to the Sunshine Coast with plans for a $20 million beachside project in Kings Beach, Caloundra.

Having identified the Sunshine Coast as a major growth market with pent-up demand for well-located beachside apartments, the group has lodged a development application for a 31-apartment complex high on a north east facing ridge in Canberra Terrace at Kings Beach, which it plans to release to the market in October this year.

Amongst other major projects underway is the $400 million redevelopment undertaken by GPT and Lend Lease-managed Australian Prime Property Fund Retail.

And more than 500 lots are under construction at Aura on the Sunshine Coast. Stockland has accelerated the development of future stages of its $5 billion masterplanned city to meet demand for new home sites at the rapidly growing 6 Star Green Star community. More than 300 lots sold at the 6 Star Green Star community since the official launch of land sales in April.