Prestige Property Market Update

2022 In review | december 22nd 2022

With the unwinding of Covid restrictions early in the year, buyers continued their relentless move north from southern states and Brisbane underpinning the values of Noosa’s tightly held real estate, and vacationers kept Noosa’s holiday homes and apartments close to full occupancy. Even during off-peak periods we were overhearing people say “what’s going on? It feels like school holidays.” Investors have been rewarded for their confidence in Noosa with higher rental incomes and continuing growth in the value of their properties.


It’s an understatement to say that everyone associated with the construction industry has been busy. Apartment buildings are being spruced up and others like Netanya in Hastings Street have been totally renovated. Old houses are coming down to be replaced with architectural masterpieces, and the Council have rebuilt Noosa Parade to provide better lighting, pathways, bike lanes, and landscaping.

 

Tom Offermann Real Estate maintained the coveted Number 1 position from 420 other Sunshine Coast agencies and sold more than the next 4 local competitors combined. We thank our clients for this success; they entrust their properties to us knowing we consistently produce superior results like the Noosaville and Sunrise Beach suburb price records smashed a few weeks ago.

Now holding the title of highest ever Noosaville purchase, a waterfront home at 21 Dolphin Crescent sold under the hammer for $12 million, and just a few days earlier we negotiated a higher price record for Sunrise Beach with a sale immediately post auction of an epic beachfront site at 56 David Low Way. The buyers have been clients of our office for a very long time, which is the case in so many of our sales.

21 Dolphin Cres, Noosaville’s highest sale to date

The market has not been immune to the interest rate rises, with the market peaking in April and median prices across every suburb softening 6% to 12% by year end. These price adjustments are relatively minor compared to the huge price escalation over the past few years.

Auction clearance rates remain high around 80% with the rest mostly selling soon afterwards, and the number of bidders is averaging around 3 to 4 instead of 8 to 10 a year ago. The backlog of buyers is back to normal levels and we expect the number of properties available to increase back to normal levels early in 2023. We expect this to result in a more balanced market with more modest price movements. Whether that is up or down remains uncertain.

The upper end of the prestige market is driven by forces that are different to those that form the basis of median prices. There were an unprecedented 23 sales over $10 million during the year which averaged $17,270,000. Our company negotiated 18 of these, and 2 were private sales.

22 Noosa Pde, sold $16,500,000 Rebuilding Imminent

We look forward to seeing so many of our southern-based friends and clients here over the festive period enjoying a long awaited and well-deserved holiday. Where else can you enjoy such a safe environment overflowing with natural assets, the world’s most amenable climate, and nice people? THERE IS ONLY ONE NOOSA. Enjoy!

For up-to-date sales data you can always visit: www.offermann.com.au/news or drop us an email at sales@offermann.com.au and we will prepare a CMA (Competitive Market Comparison) of sales and current listings specific for your property. You may find it invaluable in this fast-changing market.