Sunshine Coast City Council Short-Term Rental Limits Approved for Coastal Suburbs

Sunshine Coast City Council voted on 6 July to impose new caps on short-term rentals in coastal zones, restricting non-hosted properties to 90 days of operation each year in postcodes 4557 and 4573. The decision directly affects owners who list homes on platforms such as Airbnb while altering options for visitors and residents seeking long-term leases.

The vote follows the release of the council's 2025 housing supply audit, which identified pressure on rental stock in beachside areas amid ongoing population growth recorded by the Australian Bureau of Statistics. Council documents link the timing to state government requirements under the Planning Act 2016 for local governments to address housing supply before the next regional plan update.

Changes for residents and visitors

Property owners in Mooloolaba who previously operated holiday lets year-round must now choose between hosting stays for no more than 90 days or converting to long-term tenancies. Families in Coolum seeking weekend accommodation will face reduced listings, while workers employed at Sunshine Coast University Hospital gain potential access to more permanent rental stock previously used for short stays.

Local advocates note that the rules apply only to non-hosted properties, leaving owner-occupied homes unaffected when hosts remain on site. The policy states exemptions for properties used for farm stays or events, preserving some flexibility for rural operators outside the coastal zones.

Next steps and implementation

Council officers will begin registration of affected properties from 1 October, with fines set under the existing local law for breaches. The government projects the first compliance reports will reach elected members by March 2027, allowing adjustments before the 2028 state election cycle.