Sunshine Coast property to deliver 'on all fronts' in 2019
THE Sunshine Coast property market will continue to "tick along nicely" in 2019 with more interstate investors searching for opportunities, according to Savills' Sunshine Coast director Scott Gardiner.
He said low interest rates, strong employment growth and a steady local economy will underpin the region next year which is undergoing a multi-billion dollar infrastructure transformation.
"We expect to see the Sunshine Coast continue to tick along nicely," Mr Gardiner said.
"We could begin to see more interstate investors look towards the Sunshine Coast for opportunities throughout 2019, as the region continues to deliver on all fronts."
Mr Gardiner said while investment activity in the first half of 2018 had been stronger than the last six months of the year, investors continued to search the market for quality deals.
"Overall, we have seen strong interest from investors looking for quality tenanted investment property, but limited stock levels and motivated sellers where thin on the ground," Mr Gardiner said.
"While buyers have been savvy and not interested in any opportunities representing lower yields, sellers have expected returns between 6.5 per cent to 7 per cent in order to transact."
The Sunshine Coast is hosting an unprecedented development pipeline.
Some of the projects already on the way or on the drawing board include the $300 million Maroochydore City Centre redevelopment; the Sunshine Coast Airport runway extension; the $400 million Sunshine Plaza redevelopment and Stockland's masterplanned Aura and Oceanside communities.
Mr Gardiner said the Sunshine Coast industrial market has remained buoyant on all fronts, with owner-occupier and vacant land sales being most popular.
"Once again industrial has remained one of the strongest sectors in the market with a lot of land sale activity as businesses look to expand into custom designed headquarters and developers continue to produce strata products for sale," he said.
Mr Gardiner said developers were also focused on quality apartment development sites.
"Higher end apartment sites have been in demand as developers have been able to capitalise on producing sub-optimal developments with higher quality specs in order to secure funding," he said.
"This is also coupled with demand for three-bedroom, higher quality apartments and selling better within the current climate."