Is The Noosa Market Red Hot?

The first 3 months of this year continued the 2016 trend which saw most properties sold quite readily at steadily improving prices. That’s hardly a surprise against the backdrop of super buoyant east coast capital city real estate markets and the 17% uplift in visitor numbers to the Sunshine Coast.   The market acceptance of auction as the preferred sale method has matured and our company’s 85% clearance rate is rivalling Melbourne’s, long regarded as the world’s auction capital.


Some people are suggesting that the Noosa market is red hot, but I think that is an exaggeration.  Compared to the post GFC era I can understand real estate agents and property owners thinking that, and their impressions are perhaps being influenced by all the media attention on the hot Sydney and Melbourne markets.

 


5 Banksia Ave, Noosa Heads - $2.1m


There have been isolated cases in Noosa of strong competition leading to some exceptional prices, but generally it has transitioned from a terribly tough market into a balanced and normal market environment.  Noosa prices are only just nudging the levels they reached 10 years ago during the 2007 peak, whereas Sydney’s values have risen around 110% and Melbourne 90% since then.


There is speculation that this disparity in values will precipitate a large migration of wealth to Noosa.  It’s hard to disagree because those capital city property owners have benefitted from a massive lift in their wealth, so we are experiencing buyers bringing forward their Noosa Retirement plans.  Investors are taking advantage of the relatively inexpensive property in Noosa and using the increased equity levels in their other properties to invest at interest rates at all time lows.  In time we’ll look back and acknowledge these were just the advance party.

 


8 Masthead Quay, Noosa Waters - $2.25m


Negative gearing never has and probably never will be as rewarding as it is today.  The revival in visitor numbers means that in many cases the rental return nearly covers the cost of financing a Noosa investment.  Every indicator points to a continued period of growth ahead for Noosa properties, and there is no obvious reason why they won’t catch up as they always have. 



Australians generally know Noosa is a wonderful place to holiday and live, and every day that becomes less of a secret for the still small segment of international buyers, however that is likely to change quickly.


Tom Offermann

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