The Sunshine Coast – a looming housing crisis?

That headline is one we wrote in 2013 that was published in the Hinterland Aviation Horizon’s magazine. What we predicted back then was accurate. We also shared an update to those predictions in our market research report in 2017, and what we said was going to happen IS happening, just a little sooner than we thought due to the interruption of COVID-19.

In the 2013 article we shared:

“new supply is lagging well behind new demand and with population numbers set to explode over the next few years, this could mean real pressure on rental accommodation and prices.”

A recent Sunshine Coast Daily article uncovers:

“Stockland has revealed 100 blocks of land at its Aura development will be released before the end of the year to help cope with buyer demand.”

We saw it coming and continued to share the hard facts in our 2017 research report:

Demand for dwellings until 2016 well outstripped approvals, with 1500-1600 approvals, versus demand for around 2,200. Undersupply is a significant issue and a key driver of increased prices and low vacancy rates (one of Australia’s lowest). 

The property market is in the ‘upswing phase’ of the property cycle with an expectation of prices and rents accelerating over the next 2 to 3 years.

With around 340,000 people calling the Sunshine Coast home and an enviable growth rate of 2.9% per annum expected, combined with over 9 million visitors per annum and an exceptional tourist market growth rate of 375,000 new visitors in 2016, demand for housing in the next five years is forecast to increase significantly. This is estimated to require the building of 4,300 new dwellings per year, with actual supply numbers expected to be well below this, further exacerbating the undersupply. A great benefit to property investors in the region.

We’re now seeing it and feeling it across all forms of property right now through our Direct Collective.

We are seeing an INCREDIBLE amount of interest from home renters, home buyers from across the country, investors, and first home buyers. The market has gone berserk.

For our rentals team (Direct Rentals), we are seeing dozens of people apply for the same property and many of them offering $50+ above the weekly rent and to pay 6 months’ rent in advance just to secure a place.

For our agents (Direct Agents) and investing teams, we’re seeing properties sell within 24 hours and so many off-market sales we’re not even getting a chance to photograph the homes. There is a great shortage of properties and available land to build on that the region is simply not keeping up with demand.

Our Direct Hotels are at capacity, so much so that we couldn’t even book a room ourselves to film some videos!

We’re already the #1 undersupplied top 20 cities in Australia, with the bring forward and increase in migration that problem is going to be exacerbated. Stockland has more land coming, but not enough and not fast enough.

So what do we do about the undersupply? We maximise the opportunity of infill sites, providing quality living spaces with great amenity and close proximity to shopping, dining, entertainment and natural surroundings. Apartments, townhomes, duplexes and dual living options are great answers to the housing crisis that benefit investors and residents of the homes.

The undersupply of property on the Sunshine Coast means great news for investors with rental vacancies at 0% and people willing to pay top dollar for a place to rest their heads. But it doesn’t just make good financial sense, people literally need somewhere to live and they rely on private investors to provide homes to rent. Not everyone can buy, and government and community groups cannot be relied upon to provide the volume of housing required. The region needs investors and now is the perfect time to step in, provide homes, and earn wealth from the investment.

Want to know what else we’ve predicted, what’s coming, and how you can benefit? Download a copy of our latest research in the ‘Sunshine Coast Property Market Update’ and join our event this November either in-person or online.