Sunshine Coast becoming key economic centre
Strong economic performance, infrastructure investment, increased demand and population growth are contributing to the Sunshine Coast becoming a “key business hub” according to a CBRE report.
Sunshine Coast – The lifestyle market: Sun, surf and smart business, produced by real estate group CBRE says the shift from a tourism focus to a diversified economy is “transforming the Sunshine Coast into a key economic centre where new commerce complements established industries.”
Critical to the transition is a new economy based on a 20-year plan, opening “new avenues for business growth, development and expansion”.
The report cites major investment underway as crucial to economic growth across the region and the state, including the Maroochydore City Centre development, the Sunshine Coast Health precinct, the new international runway at Sunshine Coast Airport and the Sunshine Coast International Broadband Network.
The result is a changing property landscape, with “notable developments across the office, industrial, retail and residential sectors”.[1]
Performance economy
Impressive economic figures support the Sunshine Coast’s transition to a “key business hub”. Economic growth has outperformed almost every other regional economy over the past 15 years.
Notable figures include:
- With major new residential developments underway, the region is now the third most populous area in Queensland
- The Sunshine Coast’s GDP is forecast to more than double from $15.7 billion in 2018 to $33 billion in 2033
- Economic growth is predicted to deliver 16,000 new jobs in the five years to 2023
New office spaces
According to the report, new commercial developments in Maroochydore and Sippy Downs have significantly increased office stock, with 55% of the region’s total office stock being prime grade.
The supply of new office space is predominantly tenant or occupier driven, such as the Youi insurance HQ at Sippy Downs. Future developments include Foundation Place and the Sunshine Coast Council City Hall in the Maroochydore CBD and Aura Business Park at Bells Creek.
Trends:
- Dominated by service industries
- Growing number of entrepreneurial and innovative businesses
- Several new co-working facilities
Positive industrial outlook
CBRE reports a “positive short-term outlook for the industrial economy” with well-located buildings in high demand and gross face rents trending upwards.
Strong demand is set to continue which will be partially met by several large projects underway including Aura Business Park and Coolum Eco Industrial Park. Industrial lots are currently available for lease or sale in four major developments underway across the region.
Balanced residential market
Bucking some national trends, the Sunshine Coast residential market is experiencing “relatively stable prices”. The report cites Core Logic’s figures for the median house price in the region as $599,000, up 0.7% year-on-year.
Low vacancy rates, along with high demand, is expected to drive further investment in rental properties.
“The long-term population growth projections for the Sunshine Coast are favourable and rental dwellings will need to be built to accommodate some of this growth,” the report says.
[1] To access the full report that outlines some of the emerging opportunities for investment on the Sunshine Coast, visit the CBRE website.
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