Demand Grows, Prices Rise, and Sunshine Coast Stays Hot
By Leigh Martinuzzi | Martinuzzi Property Group – eXp Australia
Market Confidence Builds Heading Into Summer
There’s a definite shift happening in the property market right now and not just here on the Sunshine Coast. Across the country, we’re seeing growing buyer confidence, investor activity climbing, and housing values holding firm or rising. It’s all pointing to a strong finish to 2025 and an active start to the new year.
What the Latest Data Is Telling Us
1. Lending Activity Up Across the Board
Investor lending remains the strongest of the three buyer groups, but we’ve now seen a solid quarterly increase in both first-home buyer (FHB) and owner-occupier loans. That’s a key signal: confidence is returning. And this data is from the September quarter before the latest FHB incentives were rolled out. So I’d expect we’ll see even stronger numbers in the next release.
2. Construction Costs Keep Rising
Construction costs continue their upward march, driven by persistent labour shortages and supply chain disruptions. Since 2021, these costs have increased substantially and that’s flowing through into property values, particularly in the established market.
When it becomes more expensive to build, it also becomes more valuable to buy a quality established home. That’s something we’re seeing in real-time across many parts of the Sunshine Coast. Even neat, 20-year-old homes in good locations are now commanding premium prices simply because replacing them would cost significantly more today than it did even a few years ago.
3. Price Growth Forecast to Continue
Recent data from Cotality shows house prices rose 2.9% in capital cities and 2.4% in regional areas in the three months to the end of November. Some forecasts suggest we could see 10–15% growth over 2026, although many analysts are expecting that growth to slow midway through the year as affordability ceilings are reached.
Still, with buyer incentives in play and the cash rate now widely expected to remain stable, market activity should remain strong through at least the first half of the year.
Regional Housing Trends and Population Growth
Matusik Missive released some compelling insights this week into where South East Queensland’s next 100,000 homes will go. Logan City is forecast to take on about 48,000 of these, thanks to its infrastructure and available land supply. But what does this mean for us on the Sunshine Coast?
In short, as development pressures mount in SEQ’s southern growth corridors, many buyers especially lifestyle-seekers and families will continue looking north to the Sunshine Coast. Our mix of lifestyle appeal, growing infrastructure, and constrained land supply makes the region a standout option. And with limited new supply coming to market here, demand is only likely to intensify.
Implications for Buyers, Sellers & Investors
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Buyers & First‑Home Buyers: With incentives now in place and lending activity lifting, the window for value buying is still open but possibly not for long.
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Sellers: Rising replacement costs are working in your favour. A well-presented, well-located established home is highly desirable right now, especially compared to the cost and complexity of building new.
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Investors: Established homes in high-demand areas continue to offer strong short-term potential, particularly as rental markets remain tight and yields remain solid in many regional areas.
Sunshine Coast Observations
Here on the Coast, we’re seeing these trends play out clearly:
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Enquiry levels on established homes remain high as many buyers are balancing rising build costs with limited land availability.
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Renovated or well-maintained older homes are attracting strong offers, as buyers recognise the cost and difficulty of replicating these homes today.
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The investor segment has also seen a bit of a boost which is likely driven by continued rental demand and confidence in regional growth trajectories.
Local Developments
While no major local policy updates hit the radar this week, broader SEQ development plans, particularly around Logan, signal the ongoing need for smart planning and infrastructure investment here. As our region grows, maintaining that balance between liveability and growth is key.
There’s a lot to be optimistic about but also plenty to consider strategically. Whether you’re buying, selling, or investing, knowing when to move and what’s driving the market can make all the difference.
If you’d like help navigating the market whether you’re buying, selling, or just planning ahead, feel free to reach out.
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