Caloundra Congestion Busting Plan: What it means for Sunshine Coast property owners

Construction has started on the first major project of the Caloundra Congestion Busting Plan. The Caloundra Transport Corridor Upgrade will create a new route into the Caloundra CBD and ease pressure on Caloundra Road, one of the region's busiest roads.

If you've ever queued at the Nicklin Way roundabout, that's welcome news. For property owners and investors, better road access can make nearby suburbs more convenient places to live.

The upgrade is most relevant if you own or are researching property in Caloundra, Currimundi, Dicky Beach, Moffat Beach, Caloundra West, Little Mountain or Pelican Waters. Like any infrastructure, it can support a suburb's long-term appeal, but it doesn't guarantee higher rents or values.

What you need to know

The Queensland Government announced the start of construction on 30 September 2026. Sunshine Coast Council is delivering the work in two sections, built at the same time:

• Section 1, Omrah Avenue to Arthur Street: delivered and funded by Council.
• Section 2, Nicklin Way and Third Avenue extension: delivered by Council and jointly funded by the Queensland Government and Council. It includes a new signalised intersection on Nicklin Way.

The 1.6 km corridor will give drivers another way into the Caloundra CBD. It will also take pressure off the Caloundra Road, Nicklin Way and Pelican Waters Boulevard roundabout. The design includes a two-way cycle track and an underpass for pedestrians and cyclists.

Council expects construction to finish in mid-2028, and the project is expected to support around 360 jobs during delivery. More than 60,000 vehicles use the Caloundra Road corridor every day, so this is a practical fix for congestion that already exists.

The rest of the plan

The corridor upgrade is the first of five projects. The other four are at earlier stages:

• Caloundra Road, Kawana Way Link Road and Bells Creek Arterial Road intersection: new north–south bridges over Caloundra Road. Design and federal environmental approvals are in progress.
• Caloundra Road, Nicklin Way and Pelican Waters Boulevard intersection: upgrade options to improve safety and traffic flow. Planning is under way, with timeframes still to be confirmed.
• Caloundra Road and Bellvista Boulevard intersection, Little Mountain: a key link between the Bruce Highway, Aura, Caloundra South and the coast. Planning is under way.
• Aura Boulevard to Pelican Waters Boulevard link: a possible new east–west route into Caloundra. It's in early investigation, with no design or construction timeframe yet.

It's worth keeping these separate from the work now under construction. Planned projects can change in scope and timing.

Official sources:

• Queensland Government – Caloundra Congestion Busting Plan kicks off
• Sunshine Coast Council – About the Caloundra Transport Corridor Upgrade
• Department of Transport and Main Roads – Caloundra Congestion Busting Plan

What could this mean for property owners?

Access shapes where people choose to live. How much a property benefits will depend on its location, which projects are delivered and wider market conditions.

Easier access to the Caloundra CBD

A second route into the CBD could make everyday trips to shops, services, work and the beach quicker. Council expects flow-on benefits for local roads in Currimundi, Dicky Beach and Moffat Beach.

For landlords, easy access to everyday amenities is part of what makes a property appealing to tenants. The real benefit will depend on how traffic patterns change once the road opens, so don't assume every nearby street gains equally.

Caloundra is also set to get a station on The Wave, the new rail line from Beerwah. Read our Brisbane 2032 article for more on that project.

Caloundra West, Aura and Little Mountain

The wider plan reflects strong residential growth across the southern Sunshine Coast. Better links between these growing communities and Caloundra's jobs, shops and services could add to their long-term liveability.

Growing suburbs can also see more competition between rentals as new homes are completed. Look at the balance between tenant demand and new supply, not population growth alone.

Caloundra West: one of Queensland's fastest-growing areas
Caloundra West–Baringa added 1,980 residents in the year to June 2025. Only one area in Queensland grew by more.

 Source: Queensland Government Statistician's Office, 2026

Local jobs and business

Better roads make it easier for customers, staff and suppliers to reach local businesses. Construction jobs help too, but they're temporary and not always based in nearby suburbs. A diverse local employment base is the stronger signal for lasting rental demand.

Rental demand depends on more than roads

Rental performance also depends on affordability, schools, health care, shopping, the condition of the home and how much competing stock is available. A well-kept family home near schools and shops will attract a different tenant from a smaller unit near the beach. Weigh the roadworks alongside current rental evidence and the property itself.

Short-term construction impacts

While the work is under way, expect changed traffic conditions, temporary access arrangements and construction noise in some areas. If you're buying close to the works, inspect the street and understand the construction footprint. Weigh the short-term disruption against the long-term benefit.

What should landlords and investor consider?

Check the fundamentals before you buy

Infrastructure is a useful part of your research, but it shouldn't be the only reason to buy. Before you commit, consider:

1. Current rental evidence: comparable rents, vacancy and how long similar homes take to lease.
2. Practical access: how easily tenants can reach work, schools, shops, health care and public transport, now and after the upgrades.
3. Project certainty: which projects are under construction, which are in design and which are still in early planning.
4. Cash flow and holding costs: loan repayments, insurance, maintenance, management fees, rates and possible vacancy.
5. Competing supply: new developments and available rentals that could compete with your property.

A sound investment should make sense on realistic numbers, without relying on a road project to lift rents or values.

Keep your rental competitive while the area changes

If you already own a rental nearby, now is a good time to check how it compares with similar homes. Make sure it's well presented, well maintained and priced in line with the market.

Ask your property manager about enquiry levels, tenant preferences and comparable rents in your suburb. If your property is close to the works, they can keep your tenants informed about access changes.