Where to buy property on the Sunshine Coast in 2021

author-avatar By on February 03, 2021
Where to buy property on the Sunshine Coast in 2021

It’s known as the place to be for newlyweds and nearly-deads. Whether you fit into either of those categories or not, the Sunshine Coast could offer prime property-buying opportunities in 2021.

Only an hour north of Brisbane, the Sunny Coast has long been an ideal location for people chasing a beach lifestyle while still looking for proximity to a major city.

The COVID work-from-home craze has seemingly accelerated demand for this lifestyle, with vacancy rates in such locations at decade-low levels.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.

Director of The McGill Group, Mark McGill, said 2021 is an excellent year to buy property on the Sunshine Coast.

“2021 is as good a year as any, prices always look cheaper in retrospect and given the limited stock and the high desirability of the area there is no sign of things slowing down anytime soon,” Mr McGill told Savings.com.au.

Principal of Hugo Alexander Property Group, Adam Nobel, said the Sunshine Coast was experiencing a massive boom.

“Buyers from New South Wales and Victoria are flocking north for a better lifestyle, due to COVID and the ability of more and more people being able to work remotely,” Mr Nobel told Savings.com.au.

So what may be the best suburbs to buy property on the Sunshine Coast if you’re looking for growth? We asked the experts for their picks.

Sunshine Coast suburbs tipped for growth in 2021:


Noosaville

Mr Nobel said Noosaville looked like a great place to buy this year, which is far more affordable than it’s pricey Noosa neighbour.

“Here a four-bed, two-bath, two-car will start from $625,000. This is excellent value given it’s only a 12-minute drive to Hastings Street (Main Beach), and the same time to Sunshine Beach.”

Doonan

Mr Nobel said Doonan represented excellent value, given the large blocks of land available, as did neighbouring suburbs.

“Here you can buy land where you can then subdivide that land into two or three lots. Land in Cooroy and all the way to Pomona also offer excellent value.”

“The hinterland and acreage areas are also performing well because of improved technology allowing people to work from home, and also the affordability of getting more property for less dollars.”

Alexandra Headland

Mr McGill said Alexandra Headland was popular for buyers looking to live there for the long haul and had strong future prospects.

“Always a blue-chip performer and is strong in any market due to the limited number of houses and not much room for further development. Average years of ownership is approaching 20 years, meaning once you live here, you stay.”

Rosemount

Close proximity to Maroochydore and big houses and blocks of land meant Rosemount was a great place to buy this year, according to Mr McGill.

“Rosemount offers nice acreage blocks and larger block sizes with big houses and room for the caravan and the boat, but is only 10 to 15 minutes away from the Maroochydore CBD and all the convenience that comes with it. It’s still a bit of a hidden gem the locals are only just discovering.”

Currumundi

Mr McGill said the Sunshine Coast University Hospital, as well as other infrastructure, meant Currumundi was in for a boom in the near future.

“Traditionally an area known for fibro beach houses and historically a housing commission area, I feel it is only a matter of time before this area booms. Great position with an easy walk to the beach and benefiting from substantial infrastructure being built at Bokarina beach and the hospital. I think there are some excellent opportunities in this suburb, as already we are seeing a number of renovations happening in the area.”

Mudjimba

A small leafy suburb, close to the Maroochydore CBD, Mr McGill said Mudjimba could be a hidden gem this year.

“Mudjimba is a quiet little beachside pocket which is pretty much a locals only. Traditionally people always want to live close to the beach so the beachside suburbs are showing strong growth.”


Stock levels and vacancy rate at record-low levels

Whether you’re looking to buy or invest on the Sunshine Coast, you may face an uphill battle.

According to SQM Research, the number of properties for sale on the Sunshine Coast hit a decade low of 7,252 in December, compared to 12,230 in 2010.

The rental market is in even more dire straits, with vacancy rates falling to a 15-year low of 0.4% in December, down from an April high of 2.4%.

Mr McGill said the Sunny Coast has traditionally always been undersupplied, with the chance of this being rectified in 2021 nigh impossible.

“Since the Global Financial Crisis, the development market pulled away from investing in the Sunshine Coast for a multitude of reasons, mainly being the town plan limited potential development yield making projects not feasible in the market at the time.

“Now we are playing catch up, the market prices are there but the development process typically takes a few years to get a project from start to completion.

“As a best-case scenario, we don’t foresee stock levels catching up with market demand in the immediate 2-3 year future.”

He added greater owner-occupier activity than investor amongst new developments in recent years meant the undersupply issues had been heightened.

“Many of the state government policies are limiting investors from buying such as higher stamp duty than an owner-occupier, and bank lending policies favouring homeowners over investors.

“As a result owner-occupier buyers are forcing tenants out of rental properties and this is something we have been witnessing for the last 4 years and is becoming exacerbated now.”


Photo by Nick Sarvari on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Alex joined Savings.com.au in 2019. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.

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