It is safe to say May has been a whirlwind month in real estate.

Between rising interest rates, sweeping Budget reforms and changing market conditions, the past month has delivered plenty of headlines. So, what does it mean for the future of our local and national property sector?  

With the RBA announcing a third consecutive increase to 4.35%, the market is once again adjusting to tighter financial conditions. Nationally, higher borrowing costs are expected to create a more cautious buyer environment, particularly in heavily leveraged city markets. However, lifestyle regions with limited housing supply, such as our beautiful Sunshine Coast and Noosa Hinterland, continue to demonstrate resilience as buyers prioritise quality locations and long-term liveability.

The May 2026 Federal Budget has also sparked debate, revealing proposed changes to negative gearing and capital gains tax. Set to take effect from 1 July 2027, the changes will impact future investors purchasing established properties. Importantly, newly built homes remain exempt, reinforcing the Government’s focus on encouraging new housing supply and supporting long-term market stability.

Despite these changes, leading analysts, like Michael Yardney, remain optimistic about Australia’s long-term property outlook. Importantly, he says, the fundamentals have not changed. Population growth, housing undersupply, and Australia's wealth trajectory will continue to underpin values.

Regional Australia is already leading the way. Cotality’s latest report showed dwelling values rose 3.3% over the three months to April, compared with 1.1% across the combined capitals. The Sunshine Coast is certainly contributing to this success. Revealing the median home value now at $1,262,981, it is an impressive annual increase of 14.6%. Additionally, a separate news report announced the Sunshine Coast ranked third nationally for resale profitability, generating $3.38 billion in seller profits and a median resale gain of $610,000. Strong population growth and major infrastructure investment linked to the 2032 Olympics are expected to continue supporting demand.

Locally, the Noosa Hinterland market remains active. We welcomed 368 attendees to 83 open homes and multiple bidders registered for auctions at 41 Miva St, Cooroy and 15 Mallee Close, Doonan. Sales came swiftly too, such as 3/95 Garnet St, Cooroy, changing hands in only four days, and we transacted three off-market sales, including 110 Blanckensee Road, Black Mountain.

At Hinternoosa, we are passionate about helping clients make informed property decisions. Backed by local expertise, personalised service and a genuine love for our region, our dedicated team remain committed to helping clients navigate changing market conditions with confidence.