It’s official, South East Queensland will host the 2032 Olympic Games, meaning the Sunshine Coast will be put on the international stage and play host to a part of history. We celebrate this and look forward to what opportunity this will bring to Queensland, but the question on many people’s minds is what affect will…
It’s official, South East Queensland will host the 2032 Olympic Games, meaning the Sunshine Coast will be put on the international stage and play host to a part of history. We celebrate this and look forward to what opportunity this will bring to Queensland, but the question on many people’s minds is what affect will that have on our already tight property market?
In short, the property market isn’t slowing down any time soon. It’s an ideal time to be a property owner and investor on the Sunshine Coast and the opportunity to benefit from what’s coming is here NOW.
Our research and development team here at Direct Collective, headed by our own real estate expert Mal Cayley, believe that the Olympics has the potential to halve the time in which previous property market milestone predictions will be met. We predict the property values will continue on the upward trajectory at least until the Olympics, thanks to a ten-year construction and job boom in addition to that which had already set the Sunshine Coast apart as a ‘once in history’ set of circumstances.
What we’re seeing now with price rises and demand is only just the beginning. We believe the Sunshine Coast is still undervalued, and once the rest of the country and the world has eyes on what we’ve got and what’s coming, the demand will only increase; if kept at its current rate of completion, supply will not keep up.
New infrastructure is on the way including sporting venues, improved roads and public transport as well as more accommodation and amenities. With just some preliminary assessments made on the current numbers available, on the surface it looks like the Sunshine Coast will have a higher infrastructure investment per capita compared to Brisbane and the Gold Coast, creating a better net economic benefit to the region.
Part of this is due to 85% of the infrastructure required that already exists. The Gold Coast has a lot of infrastructure from the Commonwealth Games ready to go. For regions like Brisbane, an upgraded ‘Gabba’ is great, but for the Sunshine Coast our stadium overhaul (among other things) will be another game changer for the region, taking it from a field and small grandstand to a full world-class facility.
But it’s not just the initial boost of construction jobs and spending that’s positively impacting the property market and it’s not just during the Olympics that we’ll see increased visitation to boost our economy. What we predict is that due to this being an Australian-hosted Olympics, the country will do all that it can to win as many gold medals as possible by holding events and training in the exact venues that the Olympics will be held over the few years leading up to the games to have the home advantage come ‘go time’.
During this lead up time, the Sunshine Coast can expect to have more people coming to the region to be part of the infrastructure construction work, planning works, training and events. These people will all need somewhere to live or stay in the short-term, and right now the supply isn’t there. More will be built over the next 10 years but, how fast? Will it be enough to realistically meet the growing demand?
During the games we will have the international spotlight on our beautiful region, we will have visiting athletes, teams, coaches, spectators and media staying in our region and spending up. Our accommodation houses will be full and there will be increased demand for other short-term and permanent letting, as well as housing in general.
Following the games, we’ll have the legacy of the world-class infrastructure that will continue to attract sporting teams and enable further opportunity. Part of the reason the Gold Coast has its own AFL teams and NRL teams is because of the infrastructure that exists as a result of the Commonwealth Games. This will give the Sunshine Coast the impetus needed to compete in other opportunities we wouldn’t have otherwise had.
Plus, with the world’s eyes on our region and seeing the beauty and lifestyle offerings, there will surely be more visitors and migrants to our slice of paradise.
All this increasing demand, on top of what’s already a tight market, will see values continue to increase. The supply already isn’t keeping up with the demand, and we’re about to send it surging again. When demand outweighs supply, it pushes prices up and those that can’t afford it can get pushed out.
The Sunshine Coast is already in the early stages of what is predicted to be a protracted property market upswing and this is just the beginning. Many have said it’s COVID-19 related sugar hit and we’ll see the market return to normal soon. We disagree with the sugar hit viewpoint for many reasons outlined in our research book (https://investorproperty.com.au/insights/free-ebook/), but even if that was the case, this Olympic announcement and the incredible opportunity it brings to the economy, the lifestyle and the property market here, negates any impact thought coming by those who predicted a ‘sugar hit’ comedown – a ‘return to normal’.
It is likely that from a macro sense, the broader Australian property market at the end of this owner occupier and first-time buyer driven rise (not a boom) will have a protracted time that is relatively flat. The Sunshine Coast has all the factors to see it rise above what’s happening nationally and will continue to rise when the rest of country is underperforming, and then will continue in an upward cycle when the country rises again due to the Olympics, effectively outpacing for the entire period. This growth could go on long after the closing ceremony.
It’s great news for homeowners and investors, yet a competitive place for buyers and a very difficult time for renters with leases coming up for renewal.
Affordability is the number one challenge to be addressed on the Sunshine Coast and planning needs to change ‘yesterday’ to fix it.
It’s crucial a mature and robust discussion between the property industry and all levels of government happens as soon as possible to better manage the balance of supply and demand of housing.
People are coming and we need a solid plan for managing that demand in a way that also protects the culture and lifestyle of the Sunshine Coast, otherwise we will see an extended rental crisis which will eventually price people out of the market.
With considered planning and development there are opportunities for everyone to benefit, without having a negative impact on the way we live.
The best solution we see is for more approvals of appropriate infill development – which involves redeveloping existing dwellings into medium or high-density buildings – which can make room for more homes, while also giving investors a chance to build wealth and be part of the housing solution.
This doesn’t need to be along the shoreline. We won’t become the next Gold Coast.
Hundreds of thousands of people are expected to move here in the next two decades and we currently don’t have enough room for everyone, so infill development seems to be the most logical solution to ensure our lifestyle doesn’t suffer.
For more of our insights, download your FREE copy of our research report The Sunshine Coast; The Future. https://investorproperty.com.au/insights/free-ebook/
To understand how this once-in-a-lifetime set of circumstances can positively impact your financial position through strategic property investment, connect with our property coaches for free and in-depth advice. https://investorproperty.com.au/offers/free-coaching-session-book-now/