Are Sunshine Coast Property Prices Dropping?

The Sunshine Coast property market has been on a strong growth trajectory over the past few years, with buyers flocking to the region for its lifestyle, investment potential, and economic expansion. But with changing market conditions, rising interest rates, and broader shifts in the Australian property landscape, many are asking: Are Sunshine Coast property prices dropping?

At Ocean Buyers Agency, we work with buyers every day who are navigating the ups and downs of the market. Here’s a closer look at what’s happening with property prices on the Sunshine Coast and whether now is the right time to buy.

Is the Market Cooling?

Property prices on the Sunshine Coast are not crashing, but growth has certainly slowed compared to the rapid increases of 2020 to 2022. Some properties, particularly those in less desirable locations or those requiring renovations, have seen slight price corrections as buyers become more cautious.

However, premium coastal areas like Noosa, Mooloolaba, and Sunshine Beach are still commanding high prices, with limited stock keeping competition strong.

Here’s what’s influencing the market right now:

1. Interest Rates and Borrowing Power

Higher interest rates have impacted affordability, leading some buyers to hold off on purchasing or adjust their budgets. This has resulted in a shift where buyers are now more selective about what they purchase, meaning some properties that would have sold quickly during the boom are sitting on the market for longer.

However, demand for high-quality homes in prime locations remains strong, particularly from cash buyers and investors who are less affected by rate rises.

2. Supply and Demand Imbalance

One of the biggest factors keeping prices stable is the continued housing shortage.

• Land near the coast is limited, and strict development regulations mean supply is not increasing fast enough to meet demand.

• Rental vacancy rates on the Sunshine Coast remain extremely low, highlighting the high demand for housing.

• Many homeowners who locked in low interest rates during the boom are choosing not to sell, which is further limiting available stock.

As a result, even if buyer activity slows down, the lack of supply is preventing a significant drop in prices.

3. Shift in Buyer Preferences

While some parts of the market have softened, certain property types remain highly competitive.

• Move-in ready homes in sought-after locations like Noosa, Buderim, and Maroochydore continue to see strong demand.

• Renovation projects or properties with maintenance issues are facing price reductions as buyers hesitate to take on extra costs.

• Apartments and townhouses have become more appealing to buyers looking for affordability, particularly with rising construction costs making house builds more expensive.

4. Ongoing Infrastructure Investment

The Sunshine Coast is evolving, with billions being invested into new infrastructure, making it one of the most future-proofed regional markets in Australia.

Some of the major projects that will boost long-term property values include:

• The Maroochydore City Centre development, which is set to become a major commercial and employment hub.

• The proposed Sunshine Coast Rail Line, improving connectivity to Brisbane and beyond.

• The expansion of the Sunshine Coast Airport, increasing national and international access.

With these projects bringing more people, jobs, and businesses to the region, demand for housing is likely to remain strong.

What Does This Mean for Buyers?

If you’ve been waiting for a big price drop before buying, you may need to reconsider. While some properties have seen price adjustments, high-demand areas are still holding firm, and as interest rates stabilise, buyer confidence could return, driving prices up again.

Instead of trying to time the market, the best strategy is to focus on finding the right property at the right price.

• If you’re a first-time buyer or investor, targeting properties with strong rental demand could be a smart move.

• If you’re looking for a family home, secure a property now in a high-growth area before competition picks up again.

• If you’re an interstate buyer, consider working with a buyer’s agent to help you find off-market opportunities.

The Takeaway

The Sunshine Coast market has slowed compared to the boom years, but a major drop in property prices is unlikely. With ongoing demand, limited supply, and continued investment in the region, property values are expected to hold steady and grow over time.

If you’re considering buying on the Sunshine Coast, now could be a great time to secure a property while competition is lower.

At Ocean Buyers Agency, we specialise in helping buyers navigate the Sunshine Coast market, ensuring you find the right property at the right price.

Let’s find your ideal home or investment on the Sunshine Coast.