Palmwoods Market Update, Sunshine Coast — September 30, 2025
By Leigh Martinuzzi | Martinuzzi Property Group – eXp Australia
Palmwoods continues to hold its position as one of the Sunshine Coast’s most sought-after hinterland suburbs, with buyer demand surging and prices steadily rising. As of September 2025, the Palmwoods property market has officially entered the million-dollar median club, with limited inventory and elevated competition keeping upward pressure on values.
Despite broader market pressures from interest rates and affordability challenges, Palmwoods remains a standout performer, offering a strong mix of lifestyle appeal, capital growth, and reliable rental yields.
Whether you’re a homeowner considering your next move or a buyer keeping an eye on this tightly held pocket, the numbers tell a compelling story.
Key Stats
Houses in Palmwoods now have a median sale price of approximately $1,050,000, reflecting about 10–11% annual growth. Units are also rising, with median unit prices around $860,000, up about 10–11% year‑on‑year.
In terms of recent activity, there have been roughly 97 house sales in the past 12 months for data in the house category being used for those medians. For units, the sales volume is significantly lower.
Buyer Demand & Active Buyers
Demand remains strong. For houses, buyer demand has increased by approx. 40‑41% over the past year. For units, however, demand has been more volatile, with some sources showing a decrease in buyer demand in certain segments.
While I couldn’t locate a definitive number of actively looking buyers specifically this week, the marked increase in demand for houses suggests many more buyers are in the market.
Inventory & Rentals
There are around ~108–117 houses currently for sale in Palmwoods. For rentals, there are about 15‑20 properties on the market.
Rental yields are holding up. Houses deliver gross yields of about 4.0%, with weekly median rents around $685. Units show slightly higher gross yields (~4.8%) but smaller sample sizes.
Palmwoods Property Market Conditions
Palmwoods remains strongly in a seller’s market. Prices are trending upward, demand for houses is well ahead of supply, and the time properties spend on market is reasonable and not sluggish. The market for units is softer comparatively, but still seeing positive movement in price, though buyer behaviour there is more cautious.
Recent Sales Spotlight
A few recent sales illustrate what’s happening on the ground. One property in the Old Orchard Estate sold for $1,095,000, another home in Citron Place, Habitat Estate sold for about $1,001,000.
In more affordable brackets, a nicely located 3‑bedroom house on Dunning Street sold for about $775,000, and another 3‑bed roomer in a smaller block in Habitat Estate fetched $850,000.
These sales show both the premium end pushing higher and solid activity in mid‑range homes.
Why Does It Matter?
The sustained growth in Palmwoods over the past 12 months demonstrates strong capital appreciation for homeowners. For investors, rental yields remain reasonable, especially for houses, though the rising median prices reduce margins unless acquisition costs are kept in check.
With demand outpacing supply for houses, buyers entering the market may face competition and need to be well positioned (good presentation, pricing, and financing). Broader economic factors like interest rates, borrowing costs, supply constraints mean that while growth is ongoing, market sensitivity is higher than in boom periods.
My Final Take
Palmwoods continues to impress. If you own a house here, you’re likely seeing solid gains in value.
For sellers, conditions are favourable: there are buyers in the market, especially in the $900,000 to $1.2+ million range.
For buyers, moving quickly, being well prepared, and choosing wisely will help (look for well‑presented homes, and act when opportunities arise). Units offer some upside, but more risk/variability.
If you’re thinking of selling, now is a strong window. If investing or buying, do your homework but don’t wait if you find a property that fits.
What You Can Do Next
If you’re thinking about your next steps, here are a few ways we can help:
- Schedule a property valuation today: bit.ly/3Mf75K2
- Read more suburb updates: martinuzzi.com.au/blog/
- Book a free 15‑minute consultation: tinyurl.com/ycxv962c
