Caloundra Property Market: Trends and Investment Opportunities in 2025

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The Sunshine Coast property market continues to demonstrate robust performance, with Caloundra emerging as a key area of investor interest. Projections for the southern Sunshine Coast anticipate significant price growth in 2025, ranging from 12% to 16% . 

This optimistic outlook is underpinned by fundamental factors such as sustained internal migration, a constrained housing supply, the potential for easing interest rates, and ongoing investment in infrastructure . This report identifies Caloundra West, Meridan Plains, and Palmview as particularly promising up-and-coming areas for property investment, each exhibiting unique growth drivers and offering distinct opportunities for investors. 

Overall, the Caloundra property market presents a positive landscape for investors in 2025, warranting a detailed examination of current trends and potential investment strategies.

Current Caloundra Property Market Trends:

Overall Market Performance:

The median house price in Caloundra exhibits a degree of variation across different real estate platforms. Realestate.com.au reported a median of $1,000,000 for the period between February 2024 and February 2025.

In contrast, YourInvestmentPropertyMag.com.au indicated a median house price of $945,000 based on data up to December 2024. Property.com.au presented a median of $971,250, calculated over the 12 months preceding their snippet date. PropertyValue.com.au provided a range of $920,000 to $921,000, while Realestateinvestar.com.au listed the median house price at $994,500.

This range in reported figures likely stems from differences in data collection timelines and methodologies employed by each platform. However, despite these variations, the consistent presence of median house prices hovering around the $900,000 to $1,000,000 mark across these sources confirms Caloundra as a market with relatively high property values.

The past 12-month growth in house prices also shows significant divergence depending on the reporting agency. Realestate.com.au reported an increase of 0.5% , while YourInvestmentPropertyMag.com.au indicated a substantial growth of 12.50%. Property.com.au reported a decrease of -0.9%, and PropertyValue.com.au showed a growth of 12.5%. Realestateinvestar.com.au reported the highest growth at 24.46%.

This wide discrepancy underscores the importance of considering the specific data source and the timeframe it encompasses when analyzing market growth. The variation suggests that the exact period analyzed as the “past 12 months” might differ considerably between these reports, potentially leading to these differing growth figures.

Median unit prices in Caloundra are reported around $780,000 by Realestate.com.au and approximately $760,000 by YourInvestmentPropertyMag.com.au, Property.com.au, and PropertyValue.com.au. Realestateinvestar.com.au reported a slightly higher median unit price of $850,000.

Similar to house prices, a range exists, but it is less pronounced. The past 12-month growth for units is consistently strong across the platforms: 19.1% (Realestate.com.au), 16.92% (YourInvestmentPropertyMag.com.au), 16.9% (Property.com.au), 12.5% (PropertyValue.com.au), and 15.64% (Realestateinvestar.com.au). This robust growth indicates a strong demand for units in the Caloundra market.

Five-year median price trends reveal a substantial upward trajectory for both houses and units in Caloundra. For instance, Realestate.com.au data shows house prices increasing from approximately $500,000 in March 2020 to $1,000,000 in March 2024, and unit prices rising from around $400,000 to between $800,000 and $1,000,000 during the same period.

This long-term appreciation in property values highlights the sustained growth experienced by the Caloundra market over the past five years.

Rental Market Dynamics:

Median rental prices for houses in Caloundra are reported around $660 per week by Realestate.com.au 4, $620 by YourInvestmentPropertyMag.com.au , and $650 by Property.com.au. The past 12-month growth in house rental prices is reported as up 1.5% by Realestate.com.au and up 0.3% by Property.com.au . For units, the median rental price is around $610 per week according to Realestate.com.au, $615 as per YourInvestmentPropertyMag.com.au, and $620 according to Property.com.au. The past 12-month growth in unit rental prices is reported as up 7.0% by Realestate.com.au and up 1.8% by Property.com.au.

Rental yields for houses are approximately 3.3% according to Realestate.com.au and 3.88% according to YourInvestmentPropertyMag.com.au. For units, the rental yield is around 4.4% as per Realestate.com.au and 3.90% as per YourInvestmentPropertyMag.com.au.

This data suggests that units in Caloundra generally offer slightly higher rental yields compared to houses, potentially making them more appealing to investors seeking rental income.

Vacancy rates in the broader Sunshine Coast region remain notably low, reported at around 0.9% by SQM Research and even lower at 0.58% by another source. Notably, Burnside, a suburb near Caloundra, has experienced a significant drop in its vacancy rate. These low vacancy rates across the region indicate a strong demand for rental properties, suggesting that investors in Caloundra are likely to find tenants relatively easily.

Supply and Demand Analysis:

The median time a house spends on the market in Caloundra is around 48 days according to Realestate.com.au and 39 days according to YourInvestmentPropertyMag.com.au. For units, the median time on the market is approximately 43 days as reported by Realestate.com.au and just 21 days as per YourInvestmentPropertyMag.com.au.

While there is some discrepancy in the reported figures, units generally sell at a similar or faster pace than houses, potentially reflecting strong demand or more competitive pricing. Buyer interest in the Caloundra market remains robust, with Realestate.com.au reporting 1329 buyers interested in houses and 1616 buyers interested in units in the past month.

This high level of interest across both property types suggests continued demand in the area. Furthermore, the supply of houses in the region has significantly decreased by 25% compared to a decade ago. This reduction in housing supply, coupled with sustained buyer demand, is a fundamental factor contributing to the upward pressure on property prices in the Caloundra market.

Identifying Up-and-Coming Investment Areas in Caloundra:

Caloundra West:

Median house prices in Caloundra West are reported at $825,000 (February 2024-February 2025), $811,000 (December 2024), and $800,000 (November 2024). Annual house price growth is noted as up 9.3%. Median unit prices are around $648,000. Annual unit price growth is reported as up 9.3%.

Rental yields for houses are substantial, ranging from 4.5% to 4.6%, while unit rental yields are around 4.0% to 4.78%. Caloundra West is considered an up-and-coming area due to its relative affordability compared to the highly popular Caloundra, while still offering similar access to amenities.

This “ripple effect” of demand from Caloundra is expected to benefit Caloundra West. The area has also experienced massive population growth.

Meridan Plains:

Median house prices in Meridan Plains are reported at $879,000 (February 2024-February 2025), $862,500 (December 2024), $870,000 (November 2024), and $885,000. Annual house price growth is significant, ranging from 11.34% to 15.5%. Median unit prices are around $650,000, $642,500, and $628,000. Annual unit price growth is also strong, between 9.1% and 13.0%. Rental yields for houses are around 4.07% to 4.5%, and for units, between 4.7% and 5.12%. Meridan Plains is considered up-and-coming due to its robust recent growth in property values, coupled with low housing inventory and low vacancy rates. The suburb also benefits from its proximity to Palmview.

Palmview:

Median house prices in Palmview are reported at $870,000 (February 2024-February 2025), $840,000 (December 2024), $848,000 (November 2024), and $850,000. Annual house price growth ranges from 7.3% to 11.74%. Data on median unit prices and their growth is less consistently available across the sources.

Rental yields for houses are strong, between 4.5% and 4.7%. Palmview is considered an up-and-coming area due to a tightening supply in both the sales and rental markets, which has led to steady price growth. Prices in Palmview are also noted to be significantly below the average for the Sunshine Coast.

Factors Driving Property Market Growth in Caloundra:

Interstate Migration and Population Growth:

The Sunshine Coast region has experienced a significant influx of residents from other parts of Australia, benefiting more from internal migration than most other regions in the country over the past five years. The region has consistently ranked at the top for interstate migration, indicating its strong appeal to those seeking a lifestyle change.

Projections suggest a substantial increase in the population of the Sunshine Coast in the coming years, further fueling the demand for housing. This sustained high level of interstate migration is a primary driver behind the demand and subsequent price growth observed in the Caloundra property market, as more individuals and families are drawn to the lifestyle and relative affordability offered by the Sunshine Coast compared to major metropolitan areas.

The continuous influx of new residents directly translates to increased competition for available properties, placing upward pressure on both sales prices and rental rates.

Infrastructure Development:

Ongoing investment in infrastructure projects plays a crucial role in the positive outlook for the Caloundra property market. Preparations for the 2032 Olympics, although not directly in Caloundra, have a broader positive impact on the Sunshine Coast region.

More locally, the Caloundra Centre activation project and the Caloundra South priority development area (PDA) represent significant undertakings aimed at enhancing the region’s urban landscape and economic opportunities.

The Caloundra South PDA, in particular, is expected to yield approximately 20,000 new dwellings and create around 15,000 jobs upon completion.

Additionally, upgrades to the Bruce Highway and potential future rail line developments are anticipated to improve connectivity and accessibility to the region. These major infrastructure projects are likely to enhance the overall appeal and functionality of the Caloundra region, making it more attractive to both potential residents and investors, thereby further driving property value appreciation. Improved infrastructure often leads to better amenities, increased job opportunities, and enhanced accessibility, all of which contribute to the desirability of an area.

Economic Conditions and Employment Opportunities:

The Sunshine Coast boasts a strong and growing local economy, with positive growth expected to continue. Key industries in the region include healthcare, education, tourism, and construction, providing a diverse range of employment opportunities.

The Caloundra South PDA is projected to be a significant contributor to job creation, with an estimated 15,000 new positions expected.

A robust local economy with diverse employment prospects provides a stable foundation for the property market. As more people are attracted to the region for work, the demand for both purchasing and renting properties increases. Strong employment prospects lead to greater financial stability for residents, enhancing their ability to enter the property market, whether as homeowners or tenants.

This economic vitality underpins the sustained growth observed in the Caloundra property market.

Lifestyle and Amenity Appeal:

Caloundra is renowned for offering a relaxed coastal lifestyle, characterised by its beautiful beaches and a thriving community atmosphere. It is also a popular tourist destination, which significantly enhances the demand for rental properties, particularly short-term holiday rentals.

Furthermore, the region’s proximity to natural beauty and a wide range of outdoor activities makes it highly appealing to individuals and families seeking a better quality of life. Caloundra’s desirable lifestyle and abundance of natural amenities serve as significant drawcards for people considering a sea change or a move away from more densely populated urban areas.

These lifestyle factors are increasingly important in people’s decisions about where to live, and regions like Caloundra, which offer a favourable work-life balance, are likely to continue experiencing strong demand for property.

Expert Predictions and Market Forecast for 2025:

Expert predictions for the southern Sunshine Coast property market in 2025 suggest continued positive momentum, with projected price increases ranging from 12% to 16%.

The Sunshine Coast is expected to be among the top-performing property markets in Australia, with some forecasts even suggesting the potential for the region to join Sydney and the Gold Coast as one of the nation’s three most expensive property markets.

While the pace of price growth is expected to moderate compared to the significant increases seen in previous years, the market is anticipated to remain strong. Interest rate movements are expected to play a critical role in shaping market outcomes in 2025, with the potential easing of interest rates likely to boost buyer confidence and increase borrowing capacity.

Experts also suggest that the Sunshine Coast could form part of an exclusive real estate corridor, dubbed the ‘Golden Arc’, alongside Brisbane and the Gold Coast.

Well-priced properties in desirable locations are predicted to attract strong demand throughout the year. Notably, some analysts anticipate that unit price growth may continue to outpace house price growth in 2025, primarily due to increasing affordability constraints in the housing market.

This collective expert outlook indicates a generally positive trajectory for the Caloundra property market in 2025, presenting potential opportunities for investors.

Investment Strategies for the Caloundra Property Market:

Recommended Property Types:

Units in Caloundra and Caloundra West present an attractive investment proposition for 2025. Data indicates that units in these areas offer higher rental yields and have experienced strong recent capital growth.

Specifically, 2 and 3-bedroom units may be particularly appealing due to their broader tenant base and potential for higher rental income. The higher yields associated with units provide investors with better cash flow potential, while the significant capital growth observed in recent periods suggests the possibility of substantial returns on investment over the long term. The demand for units may also be driven by affordability factors, as they generally have a lower entry price point compared to houses in the same areas.

Houses in Meridan Plains also represent a compelling investment opportunity. This suburb has demonstrated strong capital growth in recent times, coupled with reasonable rental yields. The double-digit annual growth rates in house prices indicate high buyer demand and the potential for continued value appreciation.

Furthermore, the tight rental market in Meridan Plains, characterised by very low vacancy rates, suggests that investors are likely to secure tenants quickly, ensuring a consistent rental income stream. The combination of robust capital growth and a healthy rental market makes houses in Meridan Plains a promising investment for those seeking overall strong returns.

For investors with a more budget-conscious approach, houses in Caloundra West offer an appealing balance of affordability and access to the benefits of the broader Caloundra region While house prices in Caloundra West are generally lower than in Caloundra itself, the suburb still benefits from the proximity to Caloundra’s amenities, beaches, and lifestyle attractions.

The “ripple effect” theory suggests that as Caloundra becomes increasingly expensive, neighbouring areas like Caloundra West will experience increased demand from both buyers and renters, potentially driving up property values over time. The solid house rental yields observed in Caloundra West also make it an attractive option for investors seeking a steady income stream.

Investment Goals:

Investors primarily focused on capital growth may find houses in Meridan Plains and units in Caloundra to be particularly suitable.

The strong recent price appreciation in these property types suggests a higher potential for future value increases.

Conversely, investors prioritising rental income may find units in Caloundra West and Caloundra, as well as houses in Caloundra West, to be more aligned with their goals due to the higher rental yields they offer.

Leveraging Up-and-Coming Areas:

Early investment in up-and-coming areas like Caloundra West and Meridan Plains could potentially yield significant returns as these suburbs continue to grow in popularity and price.

These areas are currently more affordable than established coastal suburbs but are experiencing strong growth drivers. Investors should also monitor infrastructure developments planned for these areas, as improvements in infrastructure can further enhance the appeal and drive up property values in the long term.

Potential Risks and Considerations for Investors:

Investors considering the Caloundra property market in 2025 should be aware of several potential risks and considerations. Changes in interest rates could significantly influence market dynamics. While potential rate cuts might increase buyer demand and prices, future rate hikes could negatively impact affordability and potentially slow down market growth.

Broader economic downturns could also affect buyer confidence and lead to a softening of property values. Shifts in government policies, such as rental reforms or changes to tax incentives for investment properties, could impact the profitability of investments. While the current housing supply is limited, future development booms could potentially lead to an oversupply in certain segments of the market. Queensland’s vulnerability to climate change and natural disasters, particularly cyclones and flooding, poses a risk to coastal properties and could lead to increased insurance costs. Rising property prices could eventually lead to affordability constraints, potentially moderating the pace of market growth.

While current rental vacancy rates are low, investors should still factor in the possibility of occasional periods without tenants. Ongoing expenses associated with property ownership, such as property management fees and maintenance costs, need to be carefully considered when evaluating investment returns.

Real estate, being a less liquid asset compared to other investment types like stocks, requires investors to adopt a long-term perspective. Finally, conducting thorough due diligence on specific properties and the local market conditions is crucial for mitigating potential risks and making informed investment decisions.

Conclusion and Investment Recommendations:

The Caloundra property market in 2025 presents a generally positive outlook for investors, underpinned by strong fundamental drivers such as population growth, infrastructure development, and lifestyle appeal. Up-and-coming suburbs like Caloundra West, Meridan Plains, and Palmview offer distinct investment opportunities, each with its own set of growth drivers and potential returns. Investors should consider a diversified investment strategy that aligns with their individual goals, whether prioritising capital growth or rental income. Units in Caloundra and Meridan Plains, as well as houses in Meridan Plains and Caloundra West, appear particularly promising based on current market data and expert forecasts. However, it is crucial for investors to conduct thorough due diligence, remain informed about potential risks such as interest rate changes and economic conditions, and consider their own risk tolerance and investment timeline. Consulting with local real estate professionals and financial advisors is highly recommended to obtain personalised guidance tailored to individual investment strategies and circumstances.

Key Market Data Snapshot for Caloundra (Houses & Units)

Comparative Analysis of Up-and-Coming Suburbs (Key Metrics)

 

Caloundra’s property market is expected to continue expanding in 2025 thanks to its distinctive combination of strong infrastructure, a vibrant community, and seaside appeal.

Knowing the local quirks and new prospects is essential, regardless of your level of experience as an investor or first-time homebuyer.

You may successfully navigate this changing market and make choices that support your real estate goals by remaining informed and collaborating with competent local specialists.

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