Sunshine Coast Zoning Shake-Up: What It Means for Property Markets

Sunshine Coast Zoning Shake-Up: What It Means for Property Markets

The Sunshine Coast is on the verge of one of its most significant planning shifts in decades. Sunshine Coast Council’s Proposed New Planning Scheme — set to replace the current 2014 scheme — is designed to manage growth right through to 2046, with changes to zones, building heights, minimum lot sizes and housing types across the region. haveyoursay.sunshinecoast.qld.gov.au+1

For property owners, buyers, investors and local businesses across Buddina, Minyama, Mooloolaba, Alexandra Headland, Buderim and Warana, these proposed changes are more than technical tweaks on a map. They signal a transition to a more diverse, higher-density and future-ready urban environment — with clear implications for prices, demographics and density.

What’s Changing?

Under the new scheme (still subject to final amendments), Sunshine Coast Council has introduced updated and new zoning categories, including Low-Medium Density, Mixed Use and expanded Centre zones. haveyoursay.sunshinecoast.qld.gov.au

In practical terms, this means:

• Increased building heights and density in key hubs, especially along major transport corridors such as Nicklin Way and around shopping and town centres. Mass Transit Sunshine Coast
• Reduced lot size requirements — for example, low-density residential minimum lots shrinking from 600 m² down to 450 m² in many areas — enabling more diverse housing like townhouses and duplexes. Mass Transit Sunshine Coast+1
• More medium and higher-density opportunities near services, employment and transport, while still preserving many low-rise neighbourhoods and coastal character where appropriate. haveyoursay.sunshinecoast.qld.gov.au

Suburbs like Buddina, Minyama and Parrearra are projected to absorb close to 19,000 more residents as zoning intensifies around Kawana Waters. Mass Transit Sunshine Coast Meanwhile Mooloolaba and Alexandra Headland are seeing proposed height uplifts — in some instances doubling existing levels — to support more mixed-use and higher-density living close to the beach and main centres. Mass Transit Sunshine Coast

Buderim, while topographically constrained, is also included in the plan’s local structure plans, encouraging consolidation in centres while protecting steep and vegetated escarpments. haveyoursay.sunshinecoast.qld.gov.au

Impact on Property Prices

Zoning changes typically unlock development potential — and with increased development capacity often comes upward pressure on land values. Overseas and Australian studies show that areas rezoned to allow higher density and more dwelling types may see increases in property values as developers bid for sites that can support more units or mixed-use projects. Reserve Bank of Australia

On the Coast, this likely plays out in a few ways:

• Higher land values in rezoned corridors, especially where mixed use or higher density is permitted.
• Instant uplift for properties with development potential — particularly where minimum lot sizes drop or dual occupancy becomes easier.
• Pressure on existing house prices as supply responds slowly, while demand for living closer to key centres increases.

However, it’s important to note that densification doesn’t guarantee instant price jumps across the board — areas farther from services or with infrastructure constraints may see slower changes.

Changing Demographics & Lifestyle

The new planning scheme is part of a broader regional response to population growth, housing affordability pressures and evolving lifestyle preferences. What this means for demographics:

• A broader mix of housing types — from townhouses to terraces and apartments — will attract a wider demographic mix, from young professionals and downsizers to families looking for amenity-rich living close to work and services.
• More renters and long-term residents are likely in areas where multi-unit housing becomes more common.
• Increased services, cafés, shops and mixed-use opportunities will foster vibrant, walkable centres, appealing to lifestyle-focused buyers.

Looking Ahead

Council’s proposed planning changes are ambitious and still evolving following extensive community consultation. Sunshine Coast Council For property stakeholders on the Sunshine Coast, understanding these shifts is crucial: they signal where future growth, investment and development opportunity will likely concentrate.

At Fletcher Riley, we’re here to help you navigate what these changes mean for your property, investment strategy, and long-term goals in one of Australia’s fastest-growing coastal markets.

If you’d like a tailored suburb breakdown or advice on how these zoning changes could impact a specific property, feel free to reach out!