Noosa Market Update - Spring/Summer 2024

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NOOSA MARKET UPDATE

Spring / Summer 2024

THE MARKET OUTLOOK

Noosa Real Estate Market Update September 2024

The median national housing value has risen 7.6% over the 12 months to July 2024, according to CoreLogic, to reach a new peak of $798,207.

It’s good news statewide too, with prices in metropolitan Queensland performing better still, including Brisbane recording an impressive 18.0% growth over the same time period, including 3.8% over the July quarter.

The most recent data from SQM Research also shows that across the entire Sunshine Coast region, house prices rose 10.7% to $917,252, while apartment prices rose 16.2% to $752,539.

Here in Noosa, however, particular suburbs and property types are really standing out, according to realestate.com.au:

Best performing suburb for houses: Noosaville (12.3% growth to $1.805 million)

Runner up: Noosa Heads (12.0% growth to $1,965,000)

Best performing suburb for apartments: Sunshine Beach (12.0% growth to $1.63 million)

The rapid growth in the prestige apartment market is driven by the fact that there aren’t enough top end apartments to satisfy the demand.

What’s also notable when we dig into the recent data is that the strongest action tends to be in the market for family homes.

This is very different from a year ago, when it was only really prestige property and Noosa apartment values charging ahead - largely the result of downsizers looking to relocate from Sydney, Brisbane and Melbourne.

What’s perhaps most interesting is that this is happening despite today’s high interest rates and cost of living pressures.

We’re also seeing growing demand for more “affordable” suburbs, between Peregian Beach (where house prices have risen 4.5% in the last year) and Sunrise Beach.

Families moving to the area often see real value in these more laidback beachside areas compared with many other parts of Noosa, and they offer a relaxed community feel.

Finally, it’s worth noting that the rental market remains tight - even if it has loosened up somewhat since the peak of the pandemic. In part this is due to the lack of permanent rentals, due to the rise of short term rentals.

/ Sales Agent

Prestige Property Sales across Noosa

43 Witta Circle, Noosa Heads

$30,000,000

28 Mossman Court, Noosa Heads

$12,000,000

62 Seaview Terrace, Sunshine Beach

$11,000,000

23 Mossman Court, Noosa Heads

$9,900,000

24/512 David Low Way, Castaways Beach

$8,600,000

29 Mcanally Drive, Sunshine Beach

$8,375,750

11A Webb Road, Sunshine Beach

$8,000,000

48 Orient Drive, Sunrise Beach

$6,800,000

11 Mainsails Square, Noosa Heads

$6,520,000

26 Witta Circle, Noosa Heads

$5,850,000

27 Mcanally Drive, Sunshine Beach

$5,800,000

22 Lorikeet Drive, Peregian Beach

$5,500,000

13 Pelican Street, Peregian Beach

$5,100,000

11 Tristania Drive, Marcus Beach

$5,100,000

21/512 David Low Way, Castaways Beach

$4,800,000

20 Tropicana Rise, Castaways Beach

$4,650,000

10 Ross Crescent, Sunshine Beach

$4,350,000

99 Upper Hastings Street, Noosa Heads

$4,275,000

20 Corsair Crescent, Sunrise Beach

$4,200,000

15 Mcanally Drive, Sunshine Beach $4,200,000

22/512 David Low Way, Castaways Beach

$3,650,000

jan 24 - aug 24

INTERIOR DESIGN

Why style a home for sale? Jess Brown of Blink Living tells all.

We’ve been using local Noosa property stylists Blink Living since they opened in 2008 and frequently refer sellers (and buyers) to the Blink Living team and their amazing boutique in Noosaville.

Property styling is a valuable tool to make a home stand out. It not only helps with marketing a property to buyers at open homes, it also means the property’s photos and videos will look a lot better online too.

We recently asked Jess Brown, who is General Manager of Blink Living and one of their talented team of interior designers, about the value of styling and what it offers sellers.

Jess believes property styling adds value.

“The property is presented so well it attracts more attention from a marketing and advertising point of view,” she says.

“Property styling also reduces the time on the market… [and] you get more buyers through the door.”

Blink Living takes a unique approach, customised to Noosa buyers.

“We are putting together spaces that not only enhance the home but also sell the lifestyle,” Jess explains. “Understanding the lifestyle and threading that imagery into buyer’s minds is one of our biggest goals.”

“We present the home with beautiful designer furniture by sourcing incredible pieces that encapsulate the Noosa lifestyle. The property looks great, it makes people curious, and then really envisage themselves in the property.”

Jess also acknowledges that the way you style a home for sale is not always how you would actually live in it.

“Our goal is to style with an eclectic approach that appeals to the masses. We play on tone and texture to create beautiful luxurious spaces that everyone can like rather than theming it to a particular style.”

“We try to make people fall in love with the home,” she says.

Read the full interview with Jess by scanning the QR code below.

A WORD FROM OUR COLLEAGUES

Cameron Crouch, Brisbane

How is the Brisbane market performing at the current time?

Brisbane has been continuing to show positive signs of continued growth. While this has slightly slowed in the past month, the market remains positive with lower supply of properties and strong demand. Days on market have been tracking down over the last quarter and the Brisbane market is still performing very well.

What impact has the increase in interest rates had on the Brisbane market?

After strong growth following Covid, the Brisbane property market took some time to feel the impact of rising interest rates. Affordability remains attractive to interstate buyers and local buyers who were unable to buy through the peak of the market are continuing to purchase property.

What effect has the 2023 Olympic Games announcement had on the Brisbane market?

We have seen a return of investors buying in Brisbane, with many believing the Olympic Games will bring strong growth to the property market.

What do you expect the market to do in Brisbane for the remainder of the year and beyond?

We expect the property market to continue moving along for the remainder of the year,

due to low construction of new homes and continued migration to the state.

What is the main demographic purchasing in Brisbane?

Majority of buyers for inner-city Brisbane property are locals, with most buying within the same or adjoining post code. Residential housing is predominantly families but there has been strong interest from young professional couples in units and townhouses wanting to get their foot into the property market. We have also seen a growth of interstate and international buyers which all signs are showing this to increase.

How do you feel the Brisbane market differs from other capital city markets such as Sydney/or Melbourne?

Historically it has been a slower market but remained steady through downturns. This year we have seen stronger gains from Brisbane in comparison to Sydney and Melbourne with a 14.4% increase. For the first time in 14 years, Brisbane has surpassed Melbourne's median home value.

ccrouch@raywhite.com

Australia's Investment Landscape

As we enter the latter half of 2024, Australia’s investment climate presents both opportunities and challenges. Here’s a brief overview of the current economic and investment landscape.

Australian Cash and Fixed Interest: Stability and Potential

The Reserve Bank of Australia (RBA) kept the cash rate at 4.35% in June, maintaining stability amid inflation concerns. Cash remains a safe option, but Australian bonds are becoming more attractive, with higher yields compared to cash. Bonds may offer better returns if yields fall.

Australasian Equities: Resilience and Opportunity

The ASX 200 gained 1.01% in June and 12.1% for the full 2024FY, driven by strong performances in major banks. Despite challenges in the materials sector and declines in New Zealand equities, the Australian market remains stable and promising.

International Fixed Interest: Navigating Risks

International fixed interest saw a slight decline in June, with the Bloomberg Global Aggregate Bond Index down 0.28%. US and European bonds faced widening credit spreads due to regional uncertainties. Managing duration risk is key, with corporate and government bonds offering strong fundamentals but limited additional compensation for credit risk.

International Equities: Selective Prospects

The MSCI World Index outperformed the Australian market with a 1.61% return in June and nearly 20% for the 2024FY. Despite high valuations in the US and Australia, sectors like technology and energy, along with Japanese and Indian equities, show promise for selective investment.

Navigating a Dynamic Landscape

The investment environment for the rest of 2024 features a blend of challenges and opportunities. Australian cash and bonds offer stability, while international equities provide diverse growth prospects. Thoughtful investment strategies can help capitalize on emerging opportunities. Consider discussing your portfolio or starting a new investment strategy.

Zibros Restaurant Owners: Alessio Zichichi & Dario Zichichi

Since opening late last year, Zibros, a Sicilian inspired cafe, restaurant and bar in Noosa, has quickly built a strong and devoted following amongst Noosa locals. The food is top quality and the atmosphere is friendly and relaxed.

Brothers Alessio and Dario Zichichi are co-owners. Dario runs front of house, and Alessio is head chef. Originally from Trapani, in Sicily, their journey to Noosa has taken them via Switzerland, London and Sydney. I recently spoke with Dario about opening their Noosa restaurant, and the success it has enjoyed.

“We are two brothers, the Zichichi Brothers - but it's not easy to pronounce, so we went with Zibros as the name of our cafe, restaurant and bar,” Dario told me.

“Alessio has worked at Michelin star and hatted restaurants worldwide,” Dario says. “He’s always had a great talent and loves seasonal produce. He’s a very creative chef, in charge of the whole kitchen, and changes our menu seasonally.”

“At Zibros we have a simple menu, with lots of traditional food from Sicily.”

“We have some very popular entrees modelled on the street food from Sicily we used to eat with Mum and Dad every Sunday on a day trip to Palermo.”

Dario says one of the things he loves the most about Noosa is the weather.

“It’s really close to our home town in Sicily... It reminds me of Trapani. We can still go to the beach in winter, and I love that about Noosa. Plus, the beautiful community here is a big part of it.”

zibros.com.au

Find out the full story behind Zibros by scanning the QR code below.

NOOSA MARKET REPORT

Noosa Spring Market Update

Spring is here, and with it, the promise of a rise in new listings. Listing authorities are indicating we can expect a strong wave of new properties coming to market in the next few months. While a lot of stock coming to market usually suggests price growth softening, there has also been a pick-up in first homebuyer, owner occupier and investor lending, according to recent ABS figures, and mortgage broker Loan Market recorded a 23 per cent increase in pre-approvals for new loans in August.

This comes on the back of a traditionally quiet winter period, with fewer listings leading to increased competition and stronger sale prices. Noosa’s tight supply and strong demand dynamics resulted in some big sales in the region in recent months.

The biggest home sale of the financial year in Queensland transacted in May with a waterfront property at 43 Witta Circle in Noosa Heads changing hands for $30 million – the second biggest residential sale in the state of all time. It is eclipsed only by the purchase of 17 Webb Rd, Sunshine Beach, by Gina Rinehart in 2021. Another significant sale was that of 40 Noosa Pde for more than $20 million, while in Noosaville, 38 The Promontory fetched $6.125 million, also in May.

Buyers who were waiting for more listings to hit the market started to realise that wasn’t happening and began to make their moves, but unlike the pandemic frenzy, they are more meticulous with their research and will only buy if the price is right. This has become evident with a drop in sales volumes. Anything in the $2 million to $6 million range is still selling fast, and there are fewer homes in higher price points transacting. A four-bedroom house at 13 Pelican St, Peregian Beach, fetched $5.1m, and 24 Noosa Dunes, Castaways Beach, has sold in an off-market deal for $8,600,000.

In Doonan, some amazing properties have come on the market in recent months, but have yet to sell. A good example is ‘Whipbird’ at 81 Panorama Dr, Doonan, which started out with $20 million price hopes. ‘Amar’ at 108 Panorama Dr, Doonan, has also now been listed with a price of $12 million after a few months on the market. ‘Stonelea’ at 430 Cooroy Mountain Rd, Cooroy Mountain, is also yet to sell, despite being listed with several agencies now. With an interest rate cut now unlikely until next year, it will be interesting to see what the coming months bring.

Melisa Neller Business Manager melisa@nellerre.com.au

Paddy O’Rourke Associate Agent 0458 777 055 paddy@nellerre.com.au

Robbie Neller Director / Sales Agent 0473 577 828 robbie@nellerre.com.au Shop 11, 224 David Low Way, Peregian Beach, Queensland 4573

Joel Nicholls Sales Agent 0421 722 195 joel@nellerre.com.au

Siena Moffat Executive Assistant siena@nellerre.com.au

Josh Moody Associate Agent 0460 635 322 josh@nellerre.com.au

Nicola McNamara Client Services administration@nellerre.com.au

T 07 5471 4000 F 07 5471 4001 administration@nellerre.com.au nellerrealestate nellerre.com.au

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