12:25p.m. 28th February 2008

| By Mark Furler

Sunshine Coast property prices are expected to keep climbing this year, despite the impact of interest rate hikes, a nationwide study predicts.

Independent property advisors Herron Todd White said with 9000 people a year moving to the Coast and limited land supply releases, the upswing swing of 2007 was likely to continue well into this year.

And while some in the development industry are warning the introduction of Noosa-style population restrictions could send home prices soaring, HTW's Sunshine Coast director Stuart Greensill has downplayed such fears.

Mr Greensill said enough land had been earmarked for development under state government growth plans which were virtually 'set in stone' so he did not believe the new Coast council could change much.

He said growth would happen on the Coast and there was no point in people putting their 'head in the sand' and trying to stop people coming here.

Mr Greensill said it would be far better to plan for the growth and learn from the mistakes of other areas like the Gold Coast.

He said building costs and site costs were likely to be of more immediate concern to developers here in the short term, rather than attempts by a Coast council to limit growth.

"I don't think there is a huge amount of concern about that.

"In the state government growth plans there are lot of areas set down for development,'' he said, adding that he did not think that would be easily overturned by a council.

Mr Greensill said continued investment in infrastructure by both public and private sectors would continue to improving access and amenities in needed areas.

“The duplication of the Maroochy River Bridge, Caloundra Road, Maroochydore Road and Sippy Downs accesses and the completion of the Kawana Way are examples of the continued infrastructure investments that are required to keep the Sunshine Coast as one of the most liveable regions in Australia,” he said.

In its report, HTW said affordable housing areas, such as Little Mountain, Sippy Downs, Tewantin and hinterland townships, had seen a growth of 10% to 15% in prices in the past year in homes between $300,000 and $400,0000.

"Beachside suburbs such as the Kawana Stretch, Coolumetc. have also experienced similar value increases over that period given the strong demand for properties within these locations.

"Prestige property markets have on the main, been sporadic with a reasonable volume of sales being recorded, however value levels have remained relatively static,'' the report said.

"Upper end prestige properties (Sunshine/Sunrise beachfronts, Noosa riverfronts etc.) have experienced some strong increases in values on the back of the limited supply of these higher quality, well positioned properties.

Mr Greensill said affordability issues continued to be a real problem, however there were options available with older, smaller units within the beachside localities becoming more sought after.

“Also the hinterland areas are a viable alternative for many home buyers, not just first home buyers,” he said.