Sunshine Coast

[Ricky Tarr]

There has been very little chat about the Sunshine Coast on SS recently, which is either a bad sign (smart investors are staying away), or a good thing (smart investors are keeping quiet!).

I'm starting to look seriously at purchasing an IP on the coast - there are certainly bargains to be had, and the market is starting to improve (albeit it in a patchy way).

Positives:

- The market suffered a huge decline from 2009-2012, with some areas still below what they were in 2008-09. Anecdotally, sales volumes are low and sellerts are discounting.

- Exposure to the tourist market, which is starting to pick up with the falling AUD.

- Infrastructure coming online: Kawana Hospital, University Hospital, better public transport (still terrible though), Bruce Highway upgrades, Airport expansion. In the future, better rail links to Brisbane should make the southern end of the coast a viable commute.

- The general "feel" of the place is more positive, especially away from the tourist hubs in places like Nambour, Buderim, Coolum. There are cafes and restaurants opening, a big new shopping centre in Nambour, unit developments going up in Buderim etc...

Negatives:

- the FIFO industry is going through a downturn in Queensland (althought NT is booming), which means a lot of people who would live on the coast and work in central Qld may consider leaving, or at least not buying.

- the coast is very much a "lifestyle" place...and the seachange market saw a huge boom in the early 2000s - not sure we will see that kind of growth again.

I'd be interested to hear your thoughts on the Sunshine Coast, and generate a bit of discussion.

cheers,

Rick

 

[Jenko]

Hi Rick, you didn't mention the massive amount of available land waiting to be overdeveloped when the market improves. I have recently had a couple of expensive lessons that taught me that if there is available land developers will do their best to flood the market.. I could be wrong of course.

 

[Ricky Tarr]

Good point. There is certainly still plenty of land in Kawana, Chancellor Park, Little Mountain and the likes.

I think established areas will do well - places where these is less available land and where people always want to live. I'm thinking areas like Coolum/Caloundra/Cotton Tree within walking distance to the beach, Mooloolaba and Alex Heads, Buderim, Nambour close to the hospital, the older parts of Currimundi/Kawana etc...

 

[Ricky Tarr]

http://www.realestate.com.au/property-house-qld-nambour-118043615

Walking distance to two hospitals, nearly half an acre of land - asking $359k. In the low $300s that's tempting!

 

[chindonly]

http://www.realestate.com.au/property-house-qld-nambour-118043615

Walking distance to two hospitals, nearly half an acre of land - asking $359k. In the low $300s that's tempting!

Its Nambour though - not the most desirable part of the coast.

I would look closer to the water - somwehere near the new Hospitals perhaps.

There is also a large master planned community going into South Calaoundra at some point. In driving on the highway, it looks like they have already started clearing the pine forrests for it.

 

[Ricky Tarr]

Its Nambour though - not the most desirable part of the coast.

I would look closer to the water - somwehere near the new Hospitals perhaps.

There is also a large master planned community going into South Calaoundra at some point. In driving on the highway, it looks like they have already started clearing the pine forrests for it.

Nambour is getting more livable all the time... a few more cafes in the centre of town, and some nice new estates going up too. A house that close to the hospital would rent easy enough.

That work south of Caloundra has been "planned" for about 25 years, same as the proposal to extend the railway from Landsborough to Little Mountain-Kawana-Maroochydore. My old refidex from 1988 shows a "proposed railway" in that corridor!