What This Week’s RBA Hike Means for the Sunshine Coast Property Market
By Leigh Martinuzzi | Martinuzzi Property Group – eXp Australia
This week’s decision by the Reserve Bank of Australia to lift the cash rate by another 25 basis points to 4.35% has put interest rates firmly back at the centre of the property conversation.
For many households, it will feel like familiar territory, and not necessarily in a good way. This is already the third rate hike this year, taking the cash rate back to 4.35%, the same level we saw in November 2023. After the rate relief households received last year, the RBA has now effectively moved back into restrictive territory, and that shift is being felt directly through borrowing power, repayments and buyer confidence.
This policy decision was made by majority. Eight members voted to increase the cash rate target by 25 basis points to 4.35%, while one member voted to leave the cash rate target unchanged at 4.10%. That tells us the Board was not completely unanimous, but the majority clearly felt inflation risks were still strong enough to justify another increase.
My view is simple: this rate hike will not remove serious buyers from the Sunshine Coast market, but it will make buyers sharper, more cautious and more selective.
This is now a borrowing power story
There is always a lot of noise after an RBA decision. Headlines tend to focus on mortgage stress, falling confidence and whether another hike is coming.
But from a property perspective, the key issue is borrowing power.
When rates rise, buyers do not necessarily lose the desire to purchase. What changes is the size of the loan they can comfortably service and the level of confidence they have when making an offer.
A buyer who was approved at one level earlier in the year may now need to revisit their numbers. A household that was comfortable stretching for a particular suburb or home type may now be looking more closely at repayments, buffers, insurance, rates, fuel, groceries and the total cost of living.
The Sunshine Coast buyer has not vanished. They are recalculating
Here on the Sunshine Coast, I do not see this as a sudden stop in the market. I see it as a recalibration.
The Sunshine Coast still has strong lifestyle appeal. People still want to live here. Families still need homes. Downsizers still want low-maintenance living. Investors still understand the long-term rental story. Relocators still look at our region as a lifestyle and wealth destination.
But the latest rate hike will influence how those buyers behave.
Some will reduce their budget. Some will take longer to make a decision. Some will move from houses into townhouses or duplexes. Some will widen their suburb search. Others will focus more heavily on properties that are move-in ready, because the cost of renovating or building has become another layer of risk.
It is not simply “rates are up, property is down.” The market is more nuanced than that. Good homes, priced correctly, can still attract attention. But properties that are overpriced or poorly presented may find buyers less forgiving than they were in a more confident lending environment.
Why this rate rise matters more than the number suggests
A 0.25% increase may not sound dramatic on its own, but buyers and mortgage holders do not experience rate rises in isolation.
They experience the cumulative effect.
This latest decision follows earlier increases this year, and the impact flows directly into how banks assess borrowing capacity. Higher repayments reduce household buffers. Higher assessment rates can limit what buyers can borrow. And when that happens, buyers start making different decisions.
Buyers are now asking sharper questions:
- – Can I still afford this if rates rise again?
- – Will the bank lend me enough?
- – Is this home worth stretching for?
- – Do I have enough buffer after settlement?
Those questions are now shaping the market.
Sellers need to meet the market, not chase last year’s confidence
For sellers, the message is not negative, but it is important.
In a rising-rate environment, pricing strategy becomes critical. Buyers are still there, but they are more finance-sensitive. They are comparing properties carefully. They are watching recent comparable sales. They are factoring in higher repayments. And they are less likely to emotionally overpay unless the home is genuinely scarce, well-presented and positioned correctly.
That means sellers need to be evidence-based.
The best results will come from understanding where buyer demand is strongest, how much competition exists in the local area, and what price point is most active right now. The market will still reward quality, presentation and good positioning, but it may not reward wishful pricing.
On the Sunshine Coast, this is especially relevant because we have many different micro-markets. Beachside homes, family homes, acreage, apartments, duplexes and entry-level properties can all respond differently to rate pressure.
The latest RBA move does not mean every property is affected equally. It means buyers will be more selective about what they are willing to stretch for.
Buyers should avoid panic, but also avoid waiting for perfect certainty
For buyers, my advice is to stay calm and practical.
Higher rates are uncomfortable, but they can also reduce some of the emotional competition in the market. In my experience, uncertain markets tend to separate emotional buyers from strategic buyers.
The buyers who do well in this sort of market are usually the ones who know their numbers, have finance reviewed early, understand their non-negotiables and are ready to act when the right property appears.
Waiting for perfect certainty can be costly. By the time the headlines feel positive again, competition may have already returned.
That does not mean rushing. It means being prepared.
Investors need to look beyond the rate headline
For investors, the rate hike is obviously important. Higher holding costs affect cash flow, borrowing capacity and portfolio decisions.
But the bigger question is whether the fundamentals still stack up.
On the Sunshine Coast, rental demand remains a key part of the long-term property story. Higher rates may make some investors hesitate, but rental supply is still tight in many parts of the region, and quality, well-located properties continue to be difficult to replace.
The challenge is to buy with discipline. Not every property makes sense in a higher-rate environment. Investors need to be very clear on rental demand, holding costs, body corporate fees where relevant, insurance, maintenance, land value, future appeal and exit strategy.
Final outlook
This week’s RBA hike is a reminder that the Sunshine Coast property market is being shaped by two forces at once: higher interest rates are reducing borrowing power and making buyers more cautious, while the region’s strong lifestyle appeal, limited supply in many established locations, and ongoing demand continue to support well-positioned property.
That is why I do not see this as a simple boom-or-bust story.
I see it as a market where confidence has become more selective, buyers are still active but sharper, sellers can still achieve strong results with the right strategy, and investors still have opportunities if they remain clear-eyed about the numbers.
The RBA may have lifted rates again, but the fundamentals of good property have not disappeared. What has changed is the margin for error.
And in this market, preparation matters more than ever.
If you’d like to talk through what this rate environment means for your situation specifically, why not have a call to offer you a complimentary property appraisal with our team.
At Martinuzzi Property Group, we’re here to deliver more than a sale. We guide you with radical honesty, exceptional communication, and a stress-free experience, backed by calm confidence, local expertise and genuine care, so you feel informed, supported and in control.
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