Prestige Property Market Update

Sun Shines Bright on Resilient Market | January 24th 2023

Summer remains picture-perfect with mild sunny weather, and there is no doubt many new love affairs with Noosa and its many natural assets have been created. I totally understand the feeling. After my first family holiday here we were smitten, however just to make sure we really wanted to live here, another holiday was booked. We never looked back.

So many people who now live or invest here, had similar beginnings and this notion will strongly and continuously drive future demand for real estate. There is only one Noosa, its appeal is irresistible and globally recognised. The longer-term outlook for values is undeniably exceptional when you consider the markets’ staggering 50-year track record of annual growth around 15% in some hotspots with even the lower performing locations hovering around 10%. It’s never a straight line growth however, so there will be times like now, when opportunity can shift in favour of the buyer.

Median prices in all suburbs have softened as they have throughout the country due to interest rate rises, but that doesn’t mean demand has dropped. It’s still strong, but buyers are feeling less pressure and are being more discerning. Interest rate rises are predicted to peak this year so these buying opportunities may be short lived.

It is a different story at the ultra-rare end of the market as AAA positions continue setting new price records. In key riverfront and beachfront locations there is usually just one to choose from if you are lucky, one comes on, one comes off.

One of those was 47 Mossman Court on Noosa Sound. It was listed for only five days before selling for $23.25m to buyers who had been searching with us for two years, desirous of a quality house in a prime riverfront location. The only reason it didn’t sell earlier was their flight for the first inspection was cancelled. In this tightly held prime real estate market you have to be ready to act immediately or risk missing out. There were an unprecedented 24 sales over $10m during the past year with the average being $17.640m. Two were private sales, and 20 of the other sales were negotiated by our company.

Our first auction for the year was a huge success and possibly an omen for the year ahead. The modest fibro cottage at 74 Upper Hastings Street is at the top of the steps rising up to Little Cove from Hasting Street and was owned by the seller for over 50 years. Over 100 people watched on and seven bidders were in the mix before selling at $5.75m to an excited interstate buyer intent on building their dream home. We have another busy auction calendar this year with some very exciting properties. Cannot wait to tell you about them. Property values can change quickly, so if it would help your forward financial planning to have an update, please contact any of the Tom Offermann Real Estate team. It is always a pleasure to assist in the process. Also, for a detailed list of prestige property sales, visit www.offermann.com.au/news.