Brisbane — The Sunshine Coast is positioned to become Queensland’s next investment hotspot, with the region’s property market set to benefit from population growth, a diversifying economy and a swag of new developments.
A new CBRE Viewpoint highlights favourable conditions for the Sunshine Coast’s commercial property markets, with a number of key drivers aligning the region for a period of major growth.
CBRE Managing Director Rem Rafter said the Sunshine Coast offered some of the most compelling property fundamentals in Australia.
“While some areas of Queensland have been impacted by the mining investment downturn, the Sunshine Coast has a diverse economy that supports strong employment levels and subsequent population growth,” Mr Rafter said.
“The Sunshine Coast is one of Queensland’s fastest evolving regions, with new developments such as the airport expansion and new Sunshine Coast Public University Hospital attracting more people and investment opportunities.”
CBRE Research manager Craig Godber said a number of projects earmarked for the region would provide a boost to the local market and provide a solid base for future growth.
“Over the medium to long term, the local economy will benefit as the Queensland economy realigns away from its recent resource based engineering construction focus,” Mr Godber explained.
The Sunshine Coast economy accounts for 4.5% of the Queensland economy, comprising construction (15.3%); retail trade/accommodation (13.6%); and health care/social services (12.1%).
Highlighting the Sunshine Coast Public University Hospital, Maroochydore Principal Development Area, Sunshine Coast Airport expansion and Aura, Mr Rafter said infrastructure developments would provide benefits and opportunities to the commercial property market.
“These key projects will redefine the Sunshine Coast’s property landscape, presenting new opportunities that will attract both interstate and offshore investors,” Mr Rafter explained.
“The new Maroochydore City Centre will deliver around a 240,000sqm commercial footprint to the region, in addition to 2,000 residential dwellings and a five star hotel.”
Mr Rafter said privatisation of the Sunshine Coast airport would help drive enormous growth in the region.
“Of the four major projects which could drive this region forward, the airport expansion has the most potential to attract visitors. Although the airport has an excellent management team, it is hard to see a project of this scale being driven by a regional council,” Mr Rafter said.
Sunshine Coast Public University and Kawana Health Campus
Due for completion in 2016, the Sunshine Coast Public University Hospital is a landmark project that will support population growth and boost health-related business activity significantly.
Mr Godber said the project would present significant opportunities for the commercial sector, with associated developments including health facilities, an 80-room BEST WESTERN PLUS Hotel, car park with ground floor retail, child care/early learning centre and gymnasium.
“Further commercial opportunities exist within the broader Oceanside Kawana precinct, including the future town centre and commercial precinct,” Mr Godber said.
Maroochydore City Centre Priority Development Area
Covering approximately 62 hectares, the Maroochydore City Centre Priority Development Area (PDA) is intended to create a new central business district for the region, which will create a plethora of commercial opportunities in the area.
The development will comprise approximately 75,000sqm of retail, 165,000sqm of commercial space and around 2,000 residential dwellings. Around 53 hectares will be available for development over two decades.
Sunshine Coast Airport expansion
The Sunshine Coast Airport expansion will provide a significant boost to the local commercial property market, with the potential to bring two million passengers to the region each year.
“Sunshine Coast Airport currently supports a little under 900,000 passenger movements annually, with a record high of 950,000 in 2008,” Mr Godber explained.
“Such an increase in capacity, including greater scope for international flights, would significantly benefit the Sunshine Coast’s tourism industry.”
Aura (formerly known as Caloundra South)
Aura is the largest residential city development project in Australia at present, and when completed over approximately a 30-year timespan, will provide approximately 20,000 dwellings to accommodate a population of approximately 50,000 people.
Originally Published On: http://www.hospitalitynet.org/