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'Cooling market' not deterring homebuyers as region's infrastructure and lifestyle attract new residents

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The Sunshine Coast has retained its position as the nation’s top regional migration hotspot.

The latest figures from the Regional Movers Index show the Coast attracted 8.8 per cent of Australia’s total net internal migration over the 12 months to March 2026.

It is the fourth consecutive quarter the Coast has secured the lead.

Queensland continues to dominate interstate migration overall, attracting more Aussies from other states than any other jurisdiction.

According to the REIQ, New South Wales remains the largest source of our interstate migrants, contributing around 60.3 per cent of the state’s net gain in 2024-25.

Sunshine Coast REIQ zone chair Mark McGill said he wasn’t surprised by the results given there were a number of key factors driving traffic to the region.

“Obviously we have a couple of major infrastructure drivers and that’s the access to international flights now, good medical in the hospital and the good lifestyle,” he told SCN.

“I think those are the major things. While infrastructure hasn’t quite kept up, there is a lot now in the pipeline.

“The airport is still in the middle of upgrading but when that terminal opens up, it will be unlocking a few more options.

“If you look at what is in the pipeline for the Coast, there’s still a lot coming. We’ve got the Sunshine Motorway interchange at Mooloolaba… the light rail and the railway.”

Sunshine Coast REIQ zone chair Mark McGill. Picture: The McGill Group.

Mr McGill said while there was no doubt people were relocating to the region from New South Wales, western Queenslanders were also on the move.

“Personally, in my career, I have seen people come from Toowoomba and those western areas. In Maroochydore, we see lots of those western Queenslanders migrate here.

“They don’t like the Gold Coast and they want that Sunny Coast lifestyle. While there are people from Sydney, we’re also seeing a lot from Brisbane.

“The Gold Coast is much more an international city. The Sunshine Coast appeal is that we’re still quite relaxed in comparison.”

REIQ CEO Antonia Mercorella said the sunshine state had proven to be an incredibly strong magnet all round.

“In 2025, Queensland gained 16,528 people from interstate migration, while New South Wales lost 21,465 people.

“The only other state with positive net interstate migration was Western Australia with 10,410, so Queensland comes out on top again.”

Elsewhere, the Fraser Coast ranked third nationally for regional migration, while Toowoomba and Townsville emerged among the fastest-growing destinations for capital city movers, recording annual growth in net capital-to-regional migration of 236.4 per cent and 159.7 per cent, respectively.

The migration trend comes as New South Wales recorded the worst housing affordability rates in Australia in 2024-25, according to PropTrack’s Housing Affordability Index, which takes into account incomes, mortgage rates and home prices.

Meanwhile Regional Queensland’s median dwelling value ($855,835) was higher than Regional NSW’s median value ($841,198) – with regional Queensland taking the lead since March 2026.

REIQ figures for the March 2026 quarter put the Sunshine Coast’s median house price at $1.29 million, up 3.2 per cent for the quarter, while the median unit price was $880,000, up 0.57 per cent.

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Mr McGill, who has two decades in real estate and architecture, said the Sunshine Coast’s property market was tracking as expected.

“The market is under supplied. We still do not have enough availability for what people want,” he said.

“We have got plenty of solid foundations though for a good market.”

He also pointed to finance and the recent Australian Government Budget as reasons for the cooling market.

“Buyers have been waiting for the market to settle down and drop, but with all the media about a downturn, they are now hesitant to act. People regularly miss the market trying to pick the bottom.

“The more experienced buyers are taking opportunities now especially as a long-term decision.

“If we do see a drop (in property prices), it will be related to financing, but at the moment we are still seeing people frozen.

“People aren’t selling and people aren’t buying. There is a lot of indecision in the market.

“Property is cyclical. In real terms, we are simply returning to a more normal market. It is no different to what we have been dealing with in the past decade.

“We just had a period of absolute wild growth that brought its own challenges. There are always challenges in every market, there is never a perfect time.”

Mr McGill said homebuyers were lingering around the $1.2 million mark, however, he said the plus-$3 million market was moving well.

“People are selling investment properties and buying a more premium place of residence.”

As for Queensland’s overall popularity within the market, Ms Mercorella said it brought with it a “certain responsibility”.

“If we want to keep attracting workers, families and investors, we need to make sure we’re building the homes, communities and infrastructure that support a growing population,” she said.

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