5 best areas to invest on the Sunshine Coast

The Sunshine Coast is one of the hottest property markets right now as Queensland enjoys the highest interstate migration rates in the country. And why not, when this beautiful area is experiencing steady population growth, low vacancy rates, and significant government spending on infrastructure. Such as the Sunshine Coast light rail project, University Hospital, Caloundra South mega-city construction, and airport expansion.

Today we're taking a quick look at the Sunshine Coast property market and sharing some of our best tips for 2019.

real estate Sunshine Coast

What did the property market on the Sunshine Coast look like in 2018?

Even though the property market on the Sunshine Coast ended strong in 2018, the area still experienced a drop in clearance rates. We’ve summarised the 2018 property trends in the paragraphs below.

2018 property market trends on the Sunshine Coast

According to QBE's Housing Outlook, Sunshine (and Gold Coast) properties had Queensland's strongest rate of price growth during 2018, with Sunshine Coast properties outperforming even the Gold Coast a number of times throughout the year.

Factors that played a major role in influencing the Sunshine Coast's market

The Valuer-General's Property Market Movement Report 2018 indicates that significant expenditure on infrastructure construction, tourism and sustained demand for coastal living were the key drivers of this market growth.

Sunshine Coast property market statistics 2018

During 2018, median prices on the Sunshine Coast continued to increase. Prices tracked from $599k (houses) and $421k (units) in March to reach $618.7k (houses) and $430k (units) by the end of September.

Overall price growth increased 7.7% (houses) and 5.3% (units) over the year. Though clearance rates for houses and land for sale on the Sunshine Coast had dropped over the course of 2018, turnover rates were at the higher end — ranging from 6.9%-7.4% across the region.

"Ending the year strongly, across the Sunshine Coast you can now expect rental yields between 3.5%-4.5% for houses and 4.5%-5.5% for units..."

Ending the year strongly, across the Sunshine Coast you can now expect rental yields between 3.5%-4.5% for houses and 4.5%-5.5% for units, with vacancy rates below 2.5% (and as low as 1% in key areas) across the region.

Sunshine Coast property market forecast 2019

Sunshine Coast house prices

What's the property forecast for the Sunshine Coast this year? Check out the latest stats, keeping in mind the area is currently experiencing an unemployment rate slightly higher than the national average.

Sunshine Coast house price predictions

Property prices on the Sunshine Coast are predicted to increase 2 - 6% during 2019. And if you own a rental property on the Sunshine Coast, rents are predicted to rise between 2 - 5%.

Predicted market activities

Research from QBE indicates that Sunshine Coast properties can expect a cumulative increase of 9% over the next 3 years. Median house prices should reach $650,000 by mid 2021.

"...Sunshine Coast properties can expect a cumulative increase of 9% over the next 3 years."

For Sunshine Coast properties, we’ve identified four influencing factors to keep your eye on this year, beginning with, of course, the election set for May:

  • Election: Negative gearing is one of the key issues for the 2019 election with Labor intending to cut to negative gearing rebates. A Labor win would also see an increase in capital gains tax. Experts suggest this has potential to reduce demand for investment properties and ’dent property prices’.

  • Population growth in QLD: An improvement in the Queensland economy is attractive to NSW and VIC residents chasing a lower cost of living and more affordable housing.

  • Lending restrictions: Experts are predicting that 2019 will have the lowest building approvals in 6 years. On the Sunshine Coast where vacancy rates are already low, this could further reduce vacancy rates and increase rents.

  • Unemployment rates: Unemployment on the Sunshine Coast have been steadily rising throughout 2018 and is currently above the national (and QLD) average, though economists explain this has a lot to do with the population growing faster than jobs can be created.

5 best areas to invest on the Sunshine Coast

Here are our picks for the five best areas to invest on the Sunshine Coast in 2019. Our selections are based on the best rental yields, the lowest vacancy rates, and high performance potential identified in Christopher’s Housing Boom and Bust Report 2019. Let’s take a look.

1. Coolum Beach

real estate agents Sunshine Coast

Coolum Beach is hot right now. Beaches, surfing, fine dining, twilight markets: it’s super popular with holidayers and one of the most in demand locations for investors.

What’s the lifestyle in Coolum Beach like?

Coolum Beach is a beachside suburb with both a high school and primary school. You’ll love the boardwalk, esplanade cafes, and awesome surf beaches (fully patrolled), as well as the gorgeous views of Mount Coolum that overarch the town. From Coolum Beach you can head to larger commercial centres by either car or bus — north to Noosa or south to Maroochydore and Mooloolaba.

$675,500 median house price
Coolum Beach stats

Median house prices in Coolum Beach are currently $675,500, which is an increase of 6.59% compared to the 12 months previous. Coolum Beach rental properties are attracting high rents and boast low vacancy rates (1.7%). Here you can expect rental yields between 3.9% (houses) and 4.6% (units).

Christopher’s Housing Boom and Bust Report 2019 has flagged the Coolum Beach locality for high performance potential over the medium term.

  • 6.59% increase in median house price over 12 months
  • 1.7% vacancy rate
  • 3.9% rental yield for houses
  • 4.6% rental yield for units

2. Caloundra

Stunning beaches, great shopping and commercial facilities make Caloundra one of the best investment options on the coast. Even better is the $5b Caloundra South housing development driving rapid growth in the area.

What’s the lifestyle in Caloundra like?

You can enjoy a relaxed coastal lifestyle in Caloundra, wandering the beaches and parklands but still also have access to large commercial centres, quality education, sports, arts, and shopping. Caloundra has an established public transport network that’ll take you all around the Sunshine Coast, or right down to Brisbane.

$555,000 median house price
Caloundra stats

Caloundra’s median house price currently sits at $555,000, and over the last 12 months, enjoyed a modest increase of 4.07%. Even better though are the steadily rising rent prices, low vacancy rates (1.8%) and consistent rental yields of 4.3% for houses and 5.1% for units. According to Christopher’s Housing Boom and Bust report, some of the best Sunshine Coast property rentals are located in Caloundra.

  • 4.07% increase in median house price over 12 months
  • 1.8% vacancy rate
  • 4.3% rental yield for houses
  • 5.1% rental yield for units

3. Mountain Creek

Sunshine Coast house prices

Nestled between the Mooloolah River and Buderim is lakeside Mountain Creek. The easy 3km to the beaches of Kawana Waters and Mooloolaba make it a popular investment choice.

What’s the lifestyle in Mountain Creek like?

You’ll love the lakes, river access, bike paths, and beautiful parklands that surround the residential estates of Mountain Creek. The suburb has a number of reputable schools, plus a TAFE and a university campus within 10km. If you can’t find what you need in the Mountain Creek shopping village, just head down Karawatha Drive towards Mooloolaba to access beaches and the extensive shopping and business networks.

$638,500 median house price
Mountain Creek stats

Median house prices in Mountain Creek are currently $638,500 (growing annually by 7%) and have a low vacancy rate of 1.8%. Real estate agents on the Sunshine Coast are reporting consistent rental yields of 4.1% for houses and 5.1% for units throughout Mountain Creek.

  • 7% increase in median house price over 12 months
  • 1.8% vacancy rate
  • 4.1% rental yield for houses
  • 5.1% rental yield for units

4. Peachester

Quiet, clean and green. In Peachester you’re living in the mountains but still have easy access to the Sunshine Coast beaches and business facilities.

What’s the lifestyle in Peachester like?

Once rural farmlands, Peachester has now been transformed to an upmarket community known for wildlife, peace and tranquility. Access all the facilities of the Sunshine Coast in less that 30 minutes, or for daily essentials head east for 10 minutes to Beerwah for supermarkets, buses and trains.

$565,000 median house price
Peachester stats

According to real estate agents on the Sunshine Coast, house prices in Peachester have increased by more than 16% over the past 3 years. The median house price currently sits at $565,000 and vacancy rates are a very low 1%. Expect rental returns between 4.1% for houses and 5.2% for units.

  • 16% increase in median house price over 3 years
  • 1% vacancy rate
  • 4.1% rental yield for houses
  • 5.2% rental yield for units

5. Buderim

Buderim real estate

Beautiful Buderim sits in the heart of the Sunshine Coast region and overlooks the Maroochydore and Mooloolaba beaches. It’s a bit rural and a bit rainforest and it’s undergoing some amazing growth.

What's the lifestyle in Buderim like?

People of Buderim love the safe green environment, the high quality schools, and the easy access to mountain trails or bike paths. Take a tranquil walk to your morning coffee or a quick drive to the surf, childcare, sports, music, and arts programs.

$665,000 median house price
Buderim stats

Buderim is officially a high demand area with a median house price of $665,000 — the higher end of the Sunshine Coast house prices. Vacancy rates sit around 2.4% and rental yields range from 4.2% for houses to 5% for units. Median price increase in Buderim was 4.89% over the last 12 months.

  • 2.4% vacancy rate
  • 4.2% rental yield for houses
  • 5% rental yield for units

Continue reading about the best regions in Queensland for property investment in 2019

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