Policy Changes and Planning Decisions Drive Shifts in Sunshine Coast Market

Sunshine Coast Council endorsed amendments to the local planning scheme on 8 July 2026 that lift height limits from three to five storeys on select sites within 800 metres of Maroochydore CBD rail station.

The changes follow Queensland Government updates to the Planning Act that require councils to accommodate projected population growth through 2036. Property analysts note these rules now allow more medium-density projects on land previously restricted to low-rise housing, shifting the supply pipeline at a time when remote workers continue to favour the region over capital cities.

Developers have already lodged applications for two sites on Aerodrome Road and one block on Cornmeal Creek Parade in Maroochydore. Further east, similar zoning relaxations apply near Buderim Village centre, where the council has identified three parcels for potential townhouse clusters under the new Sunshine Coast Housing Diversity Program.

Queensland median dwelling prices sit near $880,000, while Noosa Heads properties regularly exceed $2 million. Data from the latest Domain report shows Maroochydore unit values rose 6.4 per cent in the 12 months to June 2026, outpacing the broader Sunshine Coast average of 3.9 per cent. Listings in the newly rezoned corridors have increased 22 per cent since the draft amendments were released in March.

Neighbourhood-level effects

Buyers targeting streets such as Sixth Avenue in Maroochydore now face competition from project builders who can deliver 40-unit buildings under the updated controls. In contrast, established homes on the same street have seen asking prices lift by an average of $85,000 since the policy was confirmed. Agents report similar interest in Buderim’s Chelmsford Avenue precinct, where the lifestyle premium attached to proximity to Buderim Forest Park continues to support detached house values above $1.4 million.

Remote-worker demand remains a key driver, with the council citing an additional 4,200 households relocating to the coast in the past financial year. The policy shift is expected to add roughly 1,150 new dwellings across the two suburbs by 2029, according to council modelling released last week.

Next steps for market participants

Prospective purchasers should review the updated zoning maps on the Sunshine Coast Council website before making offers, particularly for blocks near the Maroochydore transport interchange or Buderim Village. Settlement periods of 60 days or longer are advisable while the final scheme documents are gazetted in September. Sellers in affected streets are advised to obtain current valuations that factor in the changed development potential of neighbouring sites.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.