RBA Rate Increase Meets $1M Property Surge on the Sunshine Coast
By Leigh Martinuzzi | Martinuzzi Property Group – eXp Australia
Australia’s housing market entered 2026 with momentum, but the tone changed sharply this February as the Reserve Bank of Australia delivered its first interest rate rise in over two years. While buyers nationally digest this shift, here on the Sunshine Coast, prices are still surging, with more than 90 suburbs now sitting above the $1 million median mark.
Let’s unpack what’s driving the headlines, how national forces are shaping local outcomes, and what it all means for you on the ground.
The RBA’s First Move in Over Two Years – What’s Behind It?
On February 3, the RBA increased the cash rate from 3.6% to 3.85%, reversing last year’s modest rate cuts. The trigger? Persistent inflation (3.3% trimmed mean) and a surprisingly strong jobs market (unemployment down to 4.1%).
Governor Michele Bullock’s message was blunt: inflation is likely to remain above target for longer, and high inflation hurts all Australians. The Bank is acting now to avoid it becoming entrenched.
This rise may be the start of a new tightening phase, or it could be a one-off. But for now, it ends what was the shortest easing cycle since 1993.
What It Means for Mortgage Holders
The impact of this rate rise is very real. Borrowers on variable loans can expect to pay an extra $80 to $200 per month, depending on location and loan size. In Brisbane and by extension, Sunshine Coast buyers, repayments will increase by around $150 per month on a median house loan.
All four major banks are passing on the full rise. For many households, borrowing power will drop by up to $18,000, pushing more buyers into lower price brackets or outer-ring locations.
This is already causing demand to shift, particularly toward more affordable pockets within lifestyle regions.
National Market’s Growth Slows, But No Crash in Sight
Despite the rate rise, property prices continued to climb in January, with the national dwelling median up 0.8%. But not all markets are equal.
- Sydney: $1.29M median, up 0.2%
- Melbourne: $830K median, nearly flat
- Brisbane: $1.05M median, up 1.6% – now a national standout
- Regional QLD: Up 13% year-on-year
The Brisbane to Sunshine Coast corridor is outperforming thanks to limited supply, population growth, and lifestyle demand. Analysts note that more affordable suburbs are seeing the strongest gains as buyers stretch budgets and look beyond the capital cities.
Sunshine Coast Snapshot: Over 90 Suburbs Above $1M Median
According to Cotality’s latest data:
- 90 out of 95 Sunshine Coast suburbs now have a median house price over $1 million
- Median value across the Coast: $1.285M (up 11.4% year-on-year)
- Median unit price: $955,310 (up 12% year-on-year)
Leading the way are iconic beach suburbs:
- Sunshine Beach: $2.57M (+13%)
- Castaways Beach: $2.35M (+16.8%)
- Noosa Heads: $2.34M (+11.5%)
But it’s the affordable growth suburbs like Caloundra (+19.1%), Bli Bli (+17.7%), and Caloundra West (+17.0%) where activity is strongest. These areas offer better value, improved infrastructure, and lifestyle access, making them attractive to families and first-time buyers alike.
Top 5 Growth Suburbs Over the Past 12 Months:
- Caloundra: +19.1%
- Bli Bli: +17.7%
- Little Mountain: +16.5%
- Wurtulla: +16.2%
- Kings Beach / Baringa: +16.2%
Buyer, Seller and Investor Outlook
For Buyers, the rate rise trims borrowing power, but demand remains strong in the mid-to-low price brackets. Focus on value pockets like Nambour, Burnside, and Palmview, where price growth is steady and infrastructure is improving.
For Sellers, listing supply remains tight, especially in coastal and hinterland areas. Well-presented properties are attracting competitive offers, particularly in growth corridors like Caloundra and Buderim.
For Investors, rental returns are rising in both premium and affordable suburbs. Sunshine Beach, Noosa Heads, and Castaways Beach top the charts for weekly rent (over $1,300), but yields remain strong in more affordable areas like Kings Beach and Nambour.
Local Infrastructure and Supply Update
Housing supply remains constrained, limiting choice for buyers and putting upward pressure on prices. New builds are under pressure though, as rising rates make construction finance less attractive and developers face delays from labour and material shortages. Council approvals remain tight as well in key coastal zones, keeping existing home values elevated.
Final Thoughts
If you’re thinking about your next move, I’m here to help with honest advice and local expertise.
At Martinuzzi Property Group, our focus is on helping clients stay informed, understand their options, and move forward with confidence, whether that means acting now or planning carefully for the future.
Our brand promise underpins everything we do. Honest advice. Exceptional communication. A stress free sale driven by proactive service and results that exceed expectations.
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