The construction of the Sunshine Coast University Hospital (SCUH) has been creating a lot of buzz and excitement not only among local businesses around the area but also within the property investing community.
Property enthusiasts know that investing near infrastructure is generally a good thing—and a hospital as big as SCUH is definitely infrastructure that you may want to take a look at in terms of investing. To give you an idea how huge this project is, during its construction starting 2013, there will be 2000 workers on site.
The site for the SCUH is a 20-hectare greenfields site located on the corner of Kawana Way and Lake Kawana Boulevard
And once the hospital opens in late 2016, it will create jobs for 3500 people on a permanent basis. More than half of this figure will be recruited from out of the Sunshine Coast area to meet the skills required. We all know proximity to work is one factor people relocate so this SCUH project will create demand for residential and commercial developments around the area.
With the hospital’s construction and eventually when it starts operation in 2016, there will be lots of traffic around the area as the hospital is projected to be the largest employer on the Coast—lots of people coming in to look for accommodation and for a property investor, that means good rental prospects and potential for capital growth.
Where to invest
A lot of new constructions are being seen around the hospital precint area, particularly Birtinya Island where brand new housing starts ‘off the plan’ or buying before the house or apartment has been completed. Price range at the time of writing is within the $400-450k mark for a three-bedroom home. Meanwhile, there are one-bedder, executive-style apartments that cost around $300s, working upwards.
On the high-end areas are waterfront-style homes around the $800k+ mark.
Meanwhile, I see some good opportunity in the surrounding suburbs of Warana, Wurtulla and Bokarina, which are literally one kilometer away. These areas have old-style houses that can be had from $300k and has great potential for renovations and improvements to increase yield.
Median prices in these suburbs play at around the $400k mark give or take a bit either side and rental yields are around 5%.
Projections of capital growth are always just that—projections or speculation. However, opting for a bargain, older-style home in one of these suburbs, which is just a kilometer away, and doing renovation or improvement on it can increase yield. Doing it soon is a good idea, while the construction of the SCUH is on its earliest stage and prices are still relatively affordable.