Confidence Returns as Housing Values Lift — What It Means for the Sunshine Coast
By Leigh Martinuzzi | Martinuzzi Property Group – eXp Australia
After a few months of mixed signals, the national property market has found its rhythm again. Recent data shows housing values are climbing more decisively, and buyer confidence is following suit. It’s a welcome development, though not without its caveats and for us here on the Sunshine Coast, it’s a shift that brings both opportunity and important considerations. Let’s take a look at what’s driving this uptick and what it means for our local market.
Value Growth Ramps Up Especially in Affordable Segments
According to Cotality, Australian home values rose 1.1% in October, the fastest monthly growth since mid-2023. This brings annual gains to over 6%, with the middle 50% of the market, homes priced under the threshold of the First Home Guarantee showing stronger price acceleration than higher-end properties.
In fact, values in this price bracket grew around 1.2% for the month, compared to around 1% for homes above the cap. It’s clear that the expanded 5% deposit scheme, which went live on October 1 with fewer restrictions, is having an effect. It’s unlocking demand, and that demand is surging into the segments where stock is scarcest.
That’s important, because despite growing buyer interest, we’re still seeing tight supply conditions. National listings remain nearly 18% below the five-year average, meaning competition is intensifying in well-located, well-priced parts of the market and the Sunshine Coast is no exception.
Grants Today, Grief Tomorrow?
It’s not all smooth sailing, though. Michael Matusik raised a critical point in his latest Missive: while home-buying grants and incentives can provide a leg up, they often stimulate demand without addressing the underlying supply crunch. He argues these schemes, while politically popular, can inflate prices and debt levels leading to affordability issues down the track.
We’re seeing a similar dynamic play out here. With population growth outpacing new supply, the Coast is feeling the pinch. While the 5% deposit scheme is giving some first-home buyers a way in, it may also be pushing prices higher in segments that were already competitive.
National Trends Reconfirm: Confidence is Back
Michael Yardney’s latest update paints a confident picture: buyer activity is up, clearance rates are strong, and price growth is becoming more widespread. Even markets that had lagged are now showing signs of life, and lifestyle regions, like ours, remain high on the wishlist for city dwellers seeking a change.
This broadening of the recovery, especially in the middle segments of the market, suggests we may be entering a new phase in the property cycle. Momentum is building again, and buyers are becoming more decisive. That’s a big shift from the caution we saw earlier in the year.
What This Means for the Sunshine Coast
For local buyers, there’s both good and bad news. On one hand, demand is rising, and grants may help first-home buyers into the market sooner. On the other, the extra demand is putting further pressure on already-tight supply. Homes in affordable brackets under $700K to $800K are attracting strong interest and moving quickly. If you’re looking to buy in that range, be ready to act fast and be well-prepared with finance.
Sellers, particularly those with well-presented properties in that mid-value range, are seeing strong results. Multiple offers are returning in some pockets, and we’re starting to see more urgency from buyers. That said, premium homes at the top end of the market are still a little softer as the data shows the top quartile is not growing as quickly as the middle.
Investors, meanwhile, should take note of the structural drivers still in place; population growth, low rental vacancy rates, and infrastructure development continue to support strong fundamentals on the Coast. But the usual rules still apply: focus on quality assets, realistic yields, and long-term value.
Local Observations
Across the Sunshine Coast, we’re seeing strong buyer interest in the sub-$900,000 range particularly for units and townhouses, which are increasingly seen as an accessible way into the market. While suburbs like Coolum Beach have traditionally been priced above this range, there is growing demand for smaller, well-located properties there and in surrounding lifestyle areas, especially among downsizers and investors. Homes in these coastal suburbs continue to command premium prices, often well above the $1 million mark, but there’s still strong appetite from buyers where value aligns with location and lifestyle.
In more affordable areas on the Coast’s outskirts such as Nambour, Coes Creek and surrounds, demand remains elevated, particularly for family homes priced under $900K. However, even in these areas, prices are creeping higher, with competition heating up and days on market shortening. The pressure on supply, combined with incentives bringing more first-home buyers to the table, is driving this shift and we expect to see further growth in these segments as the broader market cycle continues to gain strength.
Final Thoughts
With values rising again and buyer sentiment on the up, now is a pivotal moment in the property cycle. While it’s tempting to see grants and schemes as a quick fix, the real opportunity lies in making smart, well-informed decisions aligned with your goals. For the Sunshine Coast, the fundamentals remain strong but understanding where the market is moving (and why) is key to making the most of it.
If you’d like help navigating the market whether you’re buying, selling, or just planning ahead, feel free to reach out. I’m ready to help however I can.
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