10 Things: Sunshine Coast

Here is my summary of ten things I think you should know about the Sunshine Coast.

1. The Sunshine Coast Regional Council holds 312,000 permanent residents and is growing by 8,000 new inhabitants per annum.  If you include Noosa Shire, then 370,000 people live on ‘Sunshine Coast’. This wider area grew by 9,000 new folks last year.

Including Noosa from now on…

2. The area supported some 3.7m overnight tourists last year, which is up 5% on the year before.  With just 300,000 (or 8%) of these visitors from overseas, there is considerable upside.  What the area needs is more top-end hotel/resort projects.  The loss of the Hyatt Coolum, for example, has had an impact.

3. Overnight tourists last year stayed for a total of 16m nights.  In addition, there were 6m day-trippers on the Sunshine Coast during fiscal 2017.

4. The joint has some grunt – 9th largest area in the country (if you include Noosa Shire) and 10th biggest tourist market.

5. The area needed some 16,000 new dwellings last five years, but the development industry supplied just 12,500 new digs.  The Sunshine Coast is under cooked by 20%.

6. The Sunshine Coast is expected to hold 10% of south east Queensland’s new housing development – being some 38,000 new dwellings – over the next 20-25 years.   I estimate the need to create 4,000 new dwellings per annum over the next decade.

7. Unlike Sydney and Melbourne, the Sunshine Coast’s recent price and rental trajectory has been mild.  See the tables below.  It doesn’t look like it will overshoot.

Sunshine Coast:  Annual change in residential prices

Time frame Detached house Attached dwelling Vacant land
10 years 2.7% 1.5% 2.7%
5 years 6.0% 3.8% 3.7%
Last year 5.4% 3.8% 10.5%
2018 median $ $585,000 $410,000 $293,000
2018 sales 6,100 3,900 1,925

Sunshine Coast: Annual change in weekly rents

Time frame 2 bed apartment 3 bed house 3 bed townhouse
10 years $10 $12 $9
5 years $12 $14 $12
Last year $5 $5 $5
2018 median $ $360 $445 $425

8. There are some 130,000 local jobs and the rate of new job growth has been impressive in recent years.  There are 30,500 local businesses on the Sunshine Coast, of which 22% or 6,600 focus on construction.  Yet only 12% of the local workforce are employed in construction.  More importantly, construction contributes $4.7 billion (or 42%) to the local economy and each construction worker value adds $88,000 to the Sunshine Coast’s overall wealth.

9. Whilst the local average household wages is $64,000, which makes housing look expensive at 9x house price to wages; the average total disposable income per household on the Sunshine Coast is $108,000, making the real affordability ratio a much more healthier 5.3.

10. Finally let’s look at the local time.

Verbally the property clock reads like this:

Recovery – 6 to 9 o’clock
Upturn – 9 to 12
Peak – 12
Downturn – 12 to 3
Stagnation – 3 to 6
Trough – 6

And when it comes to detached houses and vacant land the Sunshine Coast is at 10 o’clock.  Interestingly, and in contrast to many other locales, townhouses and apartments are positioned below the detached house hand at between 8 and 9 o’clock.

All in the AM of course!

Until next time,

Michael Matusik

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Matusik Missives are free but public support is vital so that I can continue to fund investigations and publish posts which speak reason to the distortion.  Your annual $99 donation helps me, help you!  Click here to donate.

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