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/
Council commits to new Coast convention centre
MONEY from the sale of Sunshine Coast Council land will be reserved to help bring a convention and exhibition centre to the new Maroochydore CBD.
A new facility is expected to cost about $200 million and the council commitment is intended to encourage state and federal contributions.
The commitment was made in a confidential session of the most recent council meeting after a motion moved by Cr Jason O’Pray was successful with seven votes for and three against.
Mayor Mark Jamieson, Cr Tim Dwyer and Cr Peter Cox opposed the motion.
Cr O’Pray could not release details of the yet-to-be-sold property or how much money would be raised but said he thought making the financial commitment, on top of providing the land, was a positive step in achieving a suitable facility.
He said he took advice from council officers in making the plan.
“I had tossed and turned about this for quite some time when I knew we were selling land in Maroochydore,” Cr O’Pray said.
“My main reasoning for quarantining this money was because I’m absolutely certain we will need state and federal backing on this.
“It is really important to me to see the CBD has its own convention centre.”
He said securing a private backer would be “even better” than relying on government funding for the project.
“Council can clearly not afford that (cost) on its own.”
Cr Jamieson was contacted for comment but declined to publicly detail his reasons for opposing the motion, with a council spokesman saying the mayor did not disclose matters discussed in confidential session.
The spokesman said the council would contribute to a convention and exhibition facility by providing the land on which it was developed and in all likelihood, having to cover the ongoing annual maintenance and other costs.
“The ratepayers of many other regions across Queensland have not been required to contribute towards the cost of developing their convention and exhibition centres,” the spokesman said.
“The cost to construct such facilities in many of these locations has been borne by the State Government.”
He said a new functional brief and specifications for a new convention and exhibition centre had been completed.
Consulting firm PG International was engaged by the council in March last year to complete the work.
“The functional brief and specifications will inform the development of a business case and preliminary design, which will be done if and when, funding becomes available.”
A Department of State Development, Manufacturing, Infrastructure and Planning spokesman said the department didn’t currently have any funding allocated for a convention and exhibition centre on the Coast.
However, he said the minister for the department and the former director-general wrote to all local governments on March 12 inviting submissions for the Maturing the Infrastructure Pipeline Program.
He said the grant program was available to all local governments through a competitive process to undertake strategic planning for infrastructure and develop business cases and detailed design.
Submissions close on April 9.
“Sunshine Coast Council could make a submission for potential assistance in developing its business case for this project,” the spokesman said.
Fast rail a boon for future generations
Sunshine Coast Business Council chairwoman Sandy Zubrinich said the North Coast Connect project, which looks to draw on rail duplication and the CAMCOS corridor, would cater to the bulk of current and future Coast populations.
She said about 65 per cent of the current population of about 170,000 people lived within proximity of the CAMCOS corridor and 85 per cent of the future Coast popualtion growth is to the region’s south, in proximity to the rail corridor.
“Locals will benefit significantly from the increased connectivity,” she said.
The North Coast Connect project has received Federal Government backing by way of a share in $20 million for a business case to be developed.
It was one of just three projects nationally to secure the funding and the Palaszczuk Government has also committed $5 million towards the business case.
Supported by Brisbane, Moreton Bay, Sunshine Coast and Noosa councils, the project is seen by Ms Zubrinich as one perfect for bi-partisan collaboration.
“It is certainly a project that the three tiers of government and the community can get behind and support,” she said.
The business case will be delivered by a consortium of KPMG, Urbis, Stockland and Smec and is expected to take 12-18 months to put together.
The vision is to slash travel times from the Coast to Brisbane down to 45 minutes.
Originally Published: www.sunshinecoastdaily.com.au
Sunshine Coast Gets $225m Airport Runway in Tourism Boost
Construction and engineering group John Holland has been awarded the $225 million contract to deliver a new and enlarged runway at the Sunshine Coast Airport. The runway is due for completion by Christmas 2020.
Sunshine Coast Mayor Jamieson said that with increased air capacity will come the demand for new hotel accommodation as well as the refurbishment of existing stock.
“The new runway will accommodate larger, more fuel-efficient aircraft and open up direct access for the Sunshine Coast to more Australian cities, international markets in Asia and the Western Pacific and in turn, drive significant economic growth.”
The new runway is part of the Airport Expansion Project, and when complete is expected to contribute $4.1 billion to the Sunshine Coast’s economy over the period to 2040 – generating around 2,230 jobs and boosting tourism as well as providing new direct access to the region and access new markets for food and agribusiness sectors.
The expansion is part of a $372 million privatisation deal with Palisade Investment Partners. Palisade took control of Sunshine Coast Airport last year under a 99-year lease with Sunshine Coast Council.
The long-term lease sees Palisade responsible for operating, investing in, and developing the airport, as well as overseeing future expansion of both domestic and international routes available to and from the Sunshine Coast.
Current estimates for the whole project sit at $303 million, including design, environmental offsets and works undertaken to date.
The Australian Government and the Queensland Treasury Corporation have helped to bankroll the expansion project, providing around $181 million in concessional loans which will be repaid from the proceeds that council receives from its commercial partner, Palisade Investment Partners, in 2022.
John Holland Group will take possession of the project site over the next couple of weeks to start preparing the site for the dredging works to commence mid-year.
The project is on track for completion by Christmas 2020.
Originally Published: theurbandeveloper.com
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