Caloundra and the Sunshine Coast see steady growth as Australia’s housing market records mixed conditions in August, according to the latest Cotality Housing Value Index.
The Sunshine Coast’s property market continues to demonstrate resilience and growth. As of August 2025, the median house price on the Sunshine Coast reached $1.22 million, reflecting a 12-month growth of 12.4%. Caloundra, in particular, has become a focal point for investors, with projections indicating price growth between 12% and 16% for the southern Sunshine Coast in 2025.
The rental market remains under significant strain. Vacancy rates in Caloundra are exceptionally tight, recorded at just 0.5% in the first quarter of 2025. This indicates strong demand for rental properties, suggesting that investors in Caloundra are likely to find tenants relatively easily.
Nationally, dwelling values rose modestly over the 30 days to 31 August, with the strongest gains continuing to cluster in larger capital cities. Regional markets saw smaller movements, reflecting a cooling trend after several years of rapid growth.
Sydney and Brisbane led the monthly increases, though the pace of growth remains slower than earlier in the year. Melbourne and Adelaide continued to register steady gains, supported by population growth and relatively affordable price points compared with the other capitals. Perth also maintained momentum, buoyed by interstate migration and a tight rental market. In contrast, Hobart values eased slightly, signalling affordability constraints and limited buyer demand. Darwin showed only minor movement, while Canberra’s market stabilised after earlier declines.
The Index shows that affordability pressures remain acute. Median values in Sydney and Melbourne are now well beyond the reach of many first homebuyers. Rising interest rates over the past two years have intensified borrowing costs, with monthly repayments at record highs relative to household incomes. For homeowners, the latest results underline the strength of equity growth in most markets, but for aspiring buyers, the gap between incomes and dwelling values continues to widen.
Rental markets remain under significant strain. Vacancy rates in all capitals sit well below long-term averages, pushing advertised rents higher. Investors have seen gross rental yields improve slightly as rents rise faster than dwelling values, particularly in Brisbane, Perth and Adelaide. However, elevated borrowing costs continue to limit investor participation, even in cities where rental demand far outpaces supply.
For homeowners, the August results represent further consolidation of gains accumulated through the first half of 2025. For investors, rising rents are offsetting weaker capital growth prospects in some cities, though affordability concerns are constraining tenant capacity to absorb higher rents. For first home buyers, the data highlights the persistence of entry barriers, especially in Sydney, Melbourne and Canberra.
The broader picture is one of divergence. Larger capitals with strong economic and population inflows continue to post growth, while smaller cities and some regional areas are flattening or edging backward. This suggests the national market is unlikely to see uniform outcomes over the remainder of 2025. Instead, local economic conditions, rental supply, and affordability constraints will play a greater role in shaping performance.
Homeowners and investors may view the latest data as evidence of resilience, but affordability remains the central issue for first homebuyers. Policymakers and market participants alike will need to consider how supply constraints and borrowing costs interact with ongoing demand pressures.
If you’re in need of property advice, contact us at First National Caloundra.
Monthly change in capital city home values
| Monthly | Annual | |
| Sydney | ↑ 0.8 | ↑ 2.1% |
| Melbourne | ↑ 0.3% | ↑ 1.4% |
| Brisbane | ↑ 1.2% | ↑ 7.9% |
| Adelaide | ↑ 0.9% | ↑ 6.5% |
| Perth | ↑ 1.1% | ↑ 6.6% |
| Hobart | ↓ 0.2% | ↑ 2.6% |
| Darwin | ↑ 1.0% | ↑ 10.2% |
| Canberra | ↑ 0.4% | ↑ 1.6% |
| National | ↑ 0.7% | ↑ 3.7% |