Elite Lifestyle Properties
Private Appraisal

Selling insights · October 2026

Caloundra Transport Corridor Upgrade is under construction: what the CTCU changes for the Caloundra end of the coast

Construction on both sections of the Caloundra Transport Corridor Upgrade began in late September, with completion expected mid-2028. What is being built and what it means for owners at the Caloundra end.

By Mitch Lund

The Caloundra Transport Corridor Upgrade is now being built, on both sections at once. Felix Project News reported on 8 October 2026 that construction activities commenced in late September, with completion expected mid-2028 subject to weather and site conditions. For owners at the Caloundra end, that is roughly 20 months of construction still ahead.

What is happening, and when

Felix Project News reported on 8 October 2026 that works have started on both the Omrah Avenue to Arthur Street section and the Nicklin Way and Third Avenue extension. The same report states the upgrade runs 1.6 kilometres and is the first major project under the Caloundra Congestion Busting Plan.

According to that report, SEE Civil was awarded the major construction contract following a public tender assessment in March 2026, all necessary approvals are in place, and the project supports around 360 jobs during delivery. Funding is split: Sunshine Coast Council funds and delivers the Omrah Avenue to Arthur Street section, while the Nicklin Way and Third Avenue extension is delivered by Council and jointly funded with the Queensland Government’s Department of Transport and Main Roads.

Why it matters now for Caloundra

Sunshine Coast Council’s project article says traffic volumes through the Caloundra Road, Nicklin Way and Pelican Waters Boulevard roundabout must be reduced before that TMR-managed intersection can itself be upgraded. The same Council article states the CTCU will reduce the number of vehicles travelling through the roundabout and on various roads by an estimated 20 per cent.

That is a forecast by Council, not a measured result, and it applies after the corridor opens rather than during construction. It is the one published estimate in the sources I have of how much pressure comes off the local street network.

What the works actually build

On the Omrah Avenue to Arthur Street section, Felix reports lane duplication on Oval Avenue and Third Avenue connecting Oval Avenue with Omrah Avenue, a two-way cycle track and pedestrian pathways, new street lighting and landscaping. Four intersections become traffic signals: Bowman Road and Gosling Street, First Avenue and Oval Avenue, Third Avenue and Oval Avenue, and Arthur Street and Third Avenue.

Felix also reports changed traffic movements at the First, Second and Third Avenue intersections with Oval Avenue, at Nicholls Street and Gosling Street, and at the Suller Street, Cowan Street and Omrah Avenue intersections with Bowman Road. My reading is simple: if your street feeds Oval Avenue or Bowman Road, your usual turn may not stay a usual turn, so check signage rather than habit.

On the second section, Felix reports a new intersection connecting Nicklin Way and Third Avenue, an extension of Third Avenue from Arthur Street to Nicklin Way, a connection to Oval Avenue which Council will duplicate, and new bike riding facilities. The stated purpose is an alternative entry into the Caloundra CBD that reduces congestion at the Caloundra Road and Nicklin Way roundabout.

What it means for owners in the surrounding suburbs

Writing in 2022, Council named Moffat Beach, Dicky Beach and Currimundi, as well as Aroona and Caloundra West via Sugar Bag Road, as the suburbs where motorists were using alternative “rat run” routes around the main roundabout. If the estimated 20 per cent reduction lands as Council forecasts, those are the streets most likely to feel a difference once the corridor opens.

For owners in Moffat Beach, Dicky Beach and Currimundi, that is a long-run positive on through-traffic, with no change promised while the work runs. For Pelican Waters and Little Mountain owners, the relevant point is the roundabout itself: Council’s position is that the CTCU is the step that has to happen before the Caloundra Road, Nicklin Way and Pelican Waters Boulevard intersection can be upgraded.

Council’s 2022 Living on the Sunshine Coast survey found 48 per cent of Caloundra respondents, in a catchment described as running from Pelican Waters to Little Mountain to Currimundi, said easing road congestion was important in making somewhere a good place to live. That is a 2022 result, so read it as a guide to what matters locally rather than a current measure.

What this does not mean

  • It does not mean traffic improves now. The estimated 20 per cent reduction is Council’s forecast for the completed corridor, and completion is expected mid-2028.
  • It does not mean the Caloundra Road, Nicklin Way and Pelican Waters Boulevard roundabout is being upgraded in this project. Council describes that as a future TMR upgrade.
  • It does not mean a separate Caloundra Road upgrade is underway. Felix reports the Government is progressing design and Federal environmental approvals for a major upgrade of Caloundra Road at Kawana, which is a different project.
  • It does not mean any price effect. Nothing in either source speaks to Sunshine Coast house prices or values in these suburbs, and I am not going to extend the evidence into a claim it does not make.

Limitations and what could change the read

The two sources carry different dates and do not fully agree, so I have left the difference visible. Council’s project article is dated 20 December 2022 and puts the CTCU at $37.8 million, running Omrah Avenue to the Nicklin Way; the Felix report of 8 October 2026 gives no project cost, so treat the $37.8 million figure as the 2022 published figure rather than a current one.

The two reports also quote different state members for Caloundra, consistent with their different publication dates. Felix states the mid-2028 completion is subject to weather and site conditions, so timing can move.

What to do next

If you drive Oval Avenue, Bowman Road or Arthur Street daily, check Council’s project updates for staged changes rather than relying on the list above, which reflects the full scope. If you are weighing up selling during the construction window, it is worth knowing exactly which works front your street and which are three blocks away.

If you would like a current read on your own street with the corridor works mapped against it, you can request a property update from Mitchell Lund at Elite Lifestyle Properties.

About this piece

Written by Mitchell Lund, Elite Lifestyle Properties. Reviewed 10 October 2026. Next review trigger: the first published construction staging or road closure notice for the CTCU, or any update to the mid-2028 completion date.

This article is general information only and does not take account of your circumstances; please speak with your own legal, financial or planning adviser before acting.

Sources

More local insight

Private Appraisal