.jpg "Bright 2014 Outlook for Sunshine Coast")
Green shoots in the Sunshine Coast property market in the form of renewed demand for residential development sites, new construction projects and strong medical-related leasing activity points to a bright outlook for 2014.
Which sectors will be most affected?
Improving fundamentals were most prominent in the residential and health property sectors and have been generating flow-on benefits throughout the entire local commercial property market.
Already there has been a decline in vacancy rates and expect an accompanying decline in incentives to follow shortly. This is being witnessed in most retail, commercial and industrial markets across the Sunshine Coast.
After a hiatus stretching back to 2008 residential sub-divisions and low to medium density town house and apartment sites were back in demand all along the Sunshine Coast.
With an increasing turnover of houses and apartments to investors, and land sales of major estates above long term trends, developers are again back in the market sourcing both small and large development sites to allow for a range of residential options.
The health sector
The health property sector is also leading the way on the Sunshine Coast on the back of major new projects now under construction – the Sunshine Coast University Hospital (SCUH) and neighbouring Oceanside Health Hub in the fast emerging Kawana precinct.
Medical buildings in the Oceanside Health Hub were close to 70% pre-committed prior to the start of construction, a feat not seen on the Sunshine Coast for many years.
The landmark medical developments underway in Kawana are true catalyst projects for the Sunshine Coast. Not only will they employ an army of construction workers for the remainder of the decade, they will also fundamentally boost and diversify our future workforce.
When completed, a whole new range of operational jobs in the health and allied sectors will create far reaching opportunities for the region outside of its traditional tourism and construction sectors.
The retail & office sector
As well as the cranes on the Kawana skyline, major construction projects are also kicking off in central Maroochydore including redevelopments and expansions of the Sunshine Plaza and Big Top shopping centres.
The establishment of central Maroochydore as the Principal Activity Centre (PAC) for the entire Sunshine Coast region would also deliver further momentum to the local property market.
The emerging medical hub in Kawana has stimulated interest for office space in that precinct and the Maroochydore PAC would have a similar positive impact on leasing activity in central Maroochydore.
The recognition that all regions need a CBD to centralise public administration and enable the agglomeration of businesses and help grow the economy of the region will bring significant rewards for the Sunshine Coast.