When you first start looking for a business for sale on the Sunshine Coast there’s two things that generally stand out, the amount of cafes for sale and the prices Sellers ask. Cafes aside, let’s get into the reason’s why businesses sell for higher prices on the Sunshine Coast than most other areas around Australia.
The overriding cause is supply and demand however there are several smaller unique forces that affect business values on the Sunshine Coast. Initially you need to understand your market segment. Take for example businesses worth less than $200,000. This market has the highest number of buyers looking and also the highest number of business for sale on the Sunshine Coast, they’re at parity. This means supply and demand doesn’t really affect prices too dramatically, this price range will simply follow the broader market.
On the other hand if you take the $500,000 to $1,000,000 price bracket there are significantly more buyers than businesses for sale. This means more buyers trying to buy limited opportunities, which obviously means prices are higher than other areas and segments of the market. There is a macro factor working in the price range however and that’s of available employment that generates comparable income. The Sunshine Coast unfortunately does not offer much employment that can generate a salary of more than $100,000 per annum. There’s only a handful of jobs on the Coast that produce $250,000 or more. This means if you require this level of income to substantiate your lifestyle then you have no choice but to purchase a business that does. This creates further competition to purchase businesses of a certain financial performance and further drives prices higher.
All this being said, why the Sunshine Coast? Well, you’re reading this article so you must be either living here or looking to live here. The fact is the Sunshine Coast has an incredible lifestyle to offer particularly for those raising families. Very few places exist with such low crime levels, such high quality education and health facilities and beautiful beaches at every turn. It’s this lay back safe beach environment that families flock to. However it does come at a price. Homes and services aren’t exactly cheap on the Sunshine Coast however you only have to take a look around to realise it’s a worth while investment.
So when you’re next searching for a business for sale on the Sunshine Coast, understand there are reasons supporting the sale prices asked for quality businesses. By understanding which part of the market you’re looking to purchase in will explain further why businesses are valued at what they are. As well all know, a business is worth what someone’s willing to pay however if there’s a queue of willing buyers, then prices will inevitably increase.