Best suburbs to invest on the Sunshine Coast in 2024
Samantha is a Sydney-based real estate and home improvement writer. She is currently Head of Marketing at OpenAgent.
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Johanna is one of the co-CEOs of OpenAgent. She has over 8 years of experience in the real estate industry through her work at OpenAgent and holds a class 2 real estate license in NSW. Previously, Johanna worked at hipages.com.au, Australia's largest trade marketplace, where she built her experience understanding renovations and home improvements for 7+ years.
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Looking for the best suburbs on the Sunshine Coast for investment in 2024?
Thanks to a booming population, the Sunshine Coast has been one of the hottest property markets over the last few years. While price growth has cooled, the Sunshine Coast remains firmly in the sights of homebuyers and investors alike.
Let’s look at how the market performed in 2023, before considering some expert predictions for Sunshine Coast property in 2024 and their tips for where to buy on the Sunshine Coast.
How did the Sunshine Coast property market perform in 2023?
After values plunged -13.1 per cent between May 2022 and February 2023, CoreLogic’s latest Regional Market Update (Nov 2023) reports Sunshine Coast home values rebounded +1.9 per cent over the year to October 2023, with a median value of $960,081.
The Sunshine Coast property market recorded a strong performance across dwelling types. In Ray White data, house values increased from $993,070 to $1,085,742 in 2023, and unit values from $719,817 to $775,197. Speaking to Sunshine Coast News, Ray White chief economist Nerida Conisbee said the results were a surprise.
“It was a really strong year for the Sunshine Coast,” Nerida said. “It was surprising because at the start of the year, there were a lot of people saying that prices would plummet in many beachside locations, particularly places like the Sunshine Coast.”
PropTrack director of economic research Cameron Kusher agrees the Sunshine Coast property market’s strong performance was unexpected and “has mainly been driven by low levels of housing stock and a rebound in demand.”
In PropTrack data, the largest Sunshine Coast property price increases were units in coastal suburbs including Alexandra Headland (+7.3 percent), Sunshine Beach (+6.8 per cent), Twin Waters (+5.5 per cent), Noosa Heads (+4.7 per cent) and Mooloolaba (+3.8 percent). On the other hand, houses in Pacific Paradise (-7.4 percent), Kuluin (-6.8 per cent), Maroochydore (-6.2 percent), Woombye (-6 per cent) and Bli Bli (-5.6 percent) dropped in value.
“At the moment, buyers are preferring units in coastal locations,” Cameron said.
Factors that played a major role in influencing the Sunshine Coast's market
While wider economic pressures have slowed growth, Sunshine Coast real estate experts agree property prices climbed due to a combination of factors, including:
- High population growth, particularly during the pandemic
- Relatively affordable property values (compared to Sydney and Melbourne)
- Strong local economy
- Low advertised housing supply
- Government incentives for first-home buyers
Sunshine Coast property market forecast 2024
The Sunshine Coast property market forecast remains positive for sellers and investors after prices rose in the first half of 2024.
CoreLogic’s Regional Market Update (May 2024) reports Sunshine Coast property prices increased +10 per cent over the past 12 months, with median dwelling value at $1,019,013.
Sunshine Coast apartments are particularly attractive to buyers. Real Institute of Queensland CEO Antonia Mercorella said units in the “relocation hotspot” have “forged ahead strongly,” offering greater affordability for both owner-occupiers and investors. Over the March quarter 2024, Sunshine Coast unit prices rose +5.62 (median sale price $705,000) while house prices recorded a +4.6 percent gain (median sale price $1,025,000).
As homebuyers seek affordable options, Domain tips Sunshine Coast apartment prices will hit record highs by the end of FY25. In its Sunshine Coast property forecast, Domain expects Sunshine Coast unit prices to rise +3 to +4 per cent and house prices +2 to +5 per cent over the next twelve months.
Property investment expert Arjun Paliwal said the “hotness” of the Sunshine Coast property market is boosted by migration, making it one of the most expensive in the country. With house prices relatively high, Arjun believes growth could start to ease over the coming months.
“House value growth is expected to slow down as prices approach the affordability ceiling,” Arjun said.
While CoreLogic head of research Tim Lawless agrees home prices will rise slowly over 2024, low supply and interstate migration could push prices up to new heights.
“A more rapid rise in housing values is likely to be held back by worsening affordability constraints,” Tim said. “If the growth trend persists across the Sunshine Coast, which looks likely, we are likely to see housing values reach new record highs.”
Five best areas to invest on the Sunshine Coast
Experts have named these as top Sunshine Coast investment suburbs for 2024, with all data sourced from realestate.com.au:
1. Nambour, 4560
A gateway to the Sunshine Coast Hinterland, Nambour is packed with small-town charm only 20 minutes’ drive to the beach. It’s also the Sunshine Coast Region’s administrative centre with shopping centres, schools and a train station.
$675,000 median house price
Nambour stats
While house prices dipped -0.9% over the past year, experts like Nambour for its long-term growth potential and affordable $675,000 median house price. Rental yield is 4.8% for houses and 5.3% for units, with rents up +3.5% (houses) and +19.4% (units) over the past year.
- -0.9% house growth over the past 12 months
- 4.8% rental yield for houses, $590 p/w median rent
- $450,000 median unit price, -2.2% growth over 12 months
- 5.3% rental yield for units, $477 p/w median rent
2. Kenilworth, 4574
Kenilworth is a small town in the Mary Valley famous for its bakery and spectacular countryside. Around 50 minutes from the coast, there’s also a grocery store, doctor’s surgery and primary school.
$759,000 median house price
Kenilworth stats
While further inland, the median house price in Kenilworth has soared +41.9% over the past year to $759,000, putting this hidden gem firmly on the watchlist of property experts.
- +41.9% house growth over the past 12 months
- 1.4% rental yield for houses
$771,500 median house price
Landsborough stats
Landsborough units have been performing particularly well. While the median unit price increased +18.5% over the past year, it's a relatively affordable $560,000. Add in low vacancy rates (0.5%) and high rental yield (4.9%) – plus a +5.3% increase in unit rents over the past year – and it’s easy to see why Landsborough has caught the attention of real estate watchers.
- $771,500 median house price, -1.1% growth over the past 12 months
- 4.0% rental yield for houses, $580 p/w median rent
- $560,000 median unit price, +18.5% growth over 12 months
- 4.9% rental yield for units, $500 p/w median rent
4. Caloundra West, 4551
Caloundra West is one of two Sunshine Coast suburbs on the REA Hot 100 suburbs to watch in 2024 list, chosen for its amenity and family-friendly community. This rapidly growing suburb is popular with families, professionals and retirees, offering relatively affordable beachside living within commuting distance of Brisbane.
$750,000 median house price
Caloundra West stats
Like other Sunshine Coast beachside suburbs, units in Caloundra West are outperforming houses. Unit values gained +5.7% over the past 12 months, with a median unit price of $629,000. Unit rents have also gone up +5.8%, and with a high rental yield of 4.7%, Caloundra West has all the pieces in place to become an investor hotspot.
- $750,000 median house price, -1.3% growth over the past 12 months
- 4.5% rental yield for houses, $640 p/w median rent
- $629,000 median unit price, +5.7% growth over 12 months
- 4.7% rental yield for units, $550 p/w median rent
5. Sippy Downs, 4556
REA’s other Sunshine Coast hot suburb to watch, Sippy Downs is a suburb of Buderim and home to the University of the Sunshine Coast. Attracting students, academics and families, Sippy Downs is renowned for its picturesque lakes and is only 10 minutes drive from the coastal playground Mooloolaba.
$800,000 median house price
Sippy Downs stats
House prices in Sippy Down have grown +2.6% over the past year, taking the median house price to $800,000. Units remain more affordable, with the median unit price sitting at a relatively low $480,000. While unit values dropped -3.0%, unit rents increased +8.0% and rental yield is high at 5.4%.
- $800,000 median house price, +2.6% growth over the past 12 months
- 4.5% rental yield for houses, $660 p/w median rent
- $480,000 median unit price, -3.0% growth over the past 12 months
- 5.4% rental yield for units, $540 p/w median rent
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