Draft Planning Scheme Released: Investors, Here’s What You Need to Know

The Sunshine Coast Council has just released its draft Planning Scheme 2046, and while it contains some welcome improvements, it doesn’t go nearly far enough to address the biggest issue facing the region: a critical undersupply of housing.

This matters not just for those living here now, but for those looking to. It matters for renters. It matters for families being priced out. And it matters for you, as an investor, because where there’s pressure and limited supply, there’s also opportunity, provided the right action is taken now.

What’s In the Draft Plan?

The draft plan includes:

• 18 Neighbourhood Framework Areas with tailored zoning overlays
• Refined building height maps, often with tight restrictions in key growth areas
• A focus on biodiversity protection, coastal hazard resilience, and design standards
• Support for diverse housing types, such as apartments and dual occupancies
• Identification of growth nodes, like Caloundra, Kawana and Maroochydore
• Encouragement of infrastructure such as EV charging and walkable communities
• A new interactive mapping tool for residents to view changes, property by property

These are positive moves in principle. But the problem isn’t what’s there, it’s what’s still missing.

We Need More Homes. Full Stop.

Despite the clear housing crisis, the draft plan continues to limit height and density in areas that desperately need more dwellings. It fails to remove enough red tape. And it’s accompanied by fee increases that directly disincentivise development.

According to our research, the Sunshine Coast Council’s planning fees remain well above the SEQ average, particularly for small- to medium-density housing like townhouses, duplexes and low-rise units; the very types that make up the “missing middle” and are most sustainable for infill growth.

Our research also shows that the Sunshine Coast remains one of the most undersupplied residential markets in Australia. Population growth is outpacing housing approvals, and the result is predictable: rising prices, increasing rents, and a shortage of affordable options.

Anything that holds back the creation of new housing, whether it’s restrictive zoning, delayed approvals or excessive development fees, will only make things worse. That means higher cost-of-entry for buyers, more pressure on the rental market, and greater inequality.

It also means something else: smart investors who act now are well-positioned to benefit from the imbalance between demand and supply, while playing a valuable role in helping solve the problem.

So, What Can You Do as an Investor?

1. Support More Housing.
   Public feedback on the draft planning scheme is open until 19 September 2025. If you believe in the power of smart investment to support housing needs, take a moment to support increased density and housing diversity through the Council’s “Have Your Say” platform.
2. Invest Strategically in High-Demand Product
   Dual-key homes, terrace houses and rent-ready new builds are in short supply and high demand. With constrained new stock coming through, investors who act now are well-positioned.

Your investment doesn’t just grow your portfolio. It puts a roof over someone’s head. It contributes to the fabric of a growing, vibrant city. And it helps shift the narrative: investors are not the problem. They’re part of the solution.

The Bottom Line

Our research makes it clear: we need more homes. The draft plan acknowledges the challenge but stops short of real reform, and we didn’t even get into the challenges at Council with the ‘application’ of any scheme to deliver. It’s up to informed investors to help lead the way.

As Mal puts it: “No matter how good the plan is, the intent to continue to undermine supply places both hands at the throat of social cohesion, economic potential, and what could be the greatest city in Australia… The [Sunshine Coast’s] future still outshines the rest of the country; however, the outcome of reduced supply is terrible news for those who don’t hold property – the best kind of news for those looking for capital and rental growth.”

We’ll continue to advocate for better planning outcomes, smarter policy, and a region that embraces growth without losing what makes it special. And if you’re ready to take your next step as an investor on the Sunshine Coast, our team is here to help.

Want to know where the best opportunities are in today’s tight market?

Book a free strategy session with our team now.