Noosa Market Update - Summer/Autumn 2024

NOOSA MARKET UPDATE

Summer / Autumn 2024

Noosa’s resilient market continues to thrive

2023 was another positive year for the Noosa property market. In fact, we don’t remember a time when there was so much buyer interest in our area.

Halfway through 2023, Noosa made headlines for having the steepest five-year price growth for a suburb in the entire country (179.5%).

While price growth softened a little in the six months since, we’re still streets ahead of where prices sat pre-pandemic, with the median sales price for Noosa houses hitting $1.75 million by the end of the year. Apartments were not far behind at $1.5 million. We now have one of the narrowest gaps between house and apartment prices anywhere in the country.

One of the key drivers of the Noosa market in 2023 was Prestige property, with several sales close to or over $20 million. However, entry-level price points in areas including Coolum and Peregian Springs also deserve a mention because, despite being impacted by multiple interest rate rises, they’ve remained buoyant. For example, houses in Peregian Springs were up 1.8% across the board compared to 2022, with a median sales price of $1.15 million in December 2023.

Over 2023, Peregian Beach became something of a property hotspot in the Noosa area. It tends to represent slightly better value than Noosa or Sunshine Beach, even though it’s just 10 minutes away. But it’s the village atmosphere people are really after, with its laid-back feel and great lifestyle and restaurants, right next to the beach.

When it comes to the rental market, Noosa has not been immune to the national rental crisis. In fact, in our area it has been exacerbated by short-term holiday letting.

If you’re thinking of selling in 2024, get in touch with our team today. Noosa is a seasonal lifestyle market, and there are always a lot of buyers around in the holiday season.

To read the full market wrap to find out which demographics were active in 2023,

Prestige Property Sales across Noosa

33 Ross Crescent, Sunshine Beach $28,000,000

26 Mcanally Drive, Sunshine Beach $13,500,000

6/27 Ross Crescent, Sunshine Beach $10,850,000

15 Key Court, Noosa Heads $9,300,000

16 Tropicana Rise, Castaways Beach $6,650,000

326 David Low Way, Peregian Beach $6,510,000

65 Elanda Street, Sunshine Beach $6,100,000

53 Orient Drive, Sunrise Beach

11 Noosa Dunes, Castaways Beach

22 Peregian Esplanade, Peregian Beach $5,500,000

11 Little Cove Road, Noosa Heads $5,350,000

21 Pelican Street, Peregian Beach $5,200,000

2/3 Morwong Drive, Noosa Heads $5,000,000

100 Lorikeet Drive, Peregian Beach $4,800,000

19 Pelican Street, Peregian Beach $4,500,000

11 Pelican Street, Peregian Beach $4,200,000

16 Corsair Crescent, Sunrise Beach $4,150,000

316 David Low Way, Peregian Beach $4,000,000

8 Maher Terrace, Sunshine Beach $3,925,000

10 Shearwater Street, Peregian Beach $3,450,000

2 Noosa Dunes, Castaways Beach $3,180,000

Shaun Lockyer, Architect

“A beautiful house should be respectfully and carefully allowed to age like a physical being,” he said. “To achieve this, we use materials like timber, stone and concrete that age and change colour. This creates a beautiful evolution of time. They get a patina that talks to character, nostalgia and the passing of time. Memory is such an important part of great architecture.”

“It’s a privilege to work in Noosa, and it’s very different to the city,” Shaun told me. “It’s about how the house engages with the land and the lifestyle.”

Read the full interview with Shaun by scanning the QR code above.

Noosa beach house, Shaun believes it has to be relaxed, and his design focuses on using natural materials and keeping sustainability front of mind.

In this edition, we speak with Adrian Bo, a property professional with over three decades of experience selling homes in Sydney’s eastern suburbs.

How is the Sydney market performing at the current time?

Sydney prices have increased in value over the past 10 months consecutively, despite the 14-interest rate rises; this has been largely attributed to a stock shortage driven by lack of construction and increased migration.

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

We are experiencing some investors selling stock to offset the burden of higher interest rates on their principal place of residence, despite rents increasing. There has also been some downsizing activity from principal residences to offset the impact of the rate rises. However, there has not been any noticeable trend of distress-selling; the market has remained resilient in the face of the increases.

Are you noticing an increase or decrease in people moving from Sydney to regional areas recently?

Yes absolutely - the lifestyle and value appeal of certain regions are still attracting migration from Sydney, particularly to NSW coastal regions such as Illawarra, Wollongong, and Newcastle, along with south east Queensland – Brisbane, Sunshine Coast, and Gold Coast.

Sydney, Australia

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

For 2024, I anticipate house values to remain consistent with current levels, and auction clearance rates remain around 70% on average. Interest rates are predicted to stabilise with a potential decrease; and any downward trajectory will have a positive impact on price growth and demand.

What is the main demographic purchasing in the Eastern Suburbs?

Young families are attracted to the eastern beaches, along with the excellent public and private schools in the area, easy access to the CBD, and efficient transport options including light rail.

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

The Sydney market does offer more in terms of career opportunities - due to the larger population, and the beachside suburbs offer an attractive coastal/surf lifestyle compared to, for example, Brisbane. The eastern and western suburbs have some of the most prestigious schools in the country, including Cranbrook (eastern suburbs), James Ruse Agricultural High School or The King’s School (western suburbs).

The balancing act between Expectations and Earnings in 2024

The Australian financial landscape in 2024 is marked by a cautious outlook influenced by several key factors. The release of the December quarter Consumer Price Index (CPI) report in early 2024 will be closely watched, particularly ahead of the Reserve Bank of Australia's (RBA) board meetings, beginning in February. This CPI data is critical in determining the trajectory of interest rates and monetary policy decisions.

Inflation remains a key concern for policymakers, with expectations that inflationary pressures may continue to moderate. However, there are nuances within inflation dynamics, particularly regarding non-discretionary items, which continue to outpace headline inflation rates. The recent changes to Stage 3 tax cuts have implications for consumer spending behaviour and inflationary pressures, which the RBA will need to consider before contemplating any further rate adjustments.

In the United States, market sentiment is buoyant, driven by strong consumer sentiment and tailwinds from robust economic growth in 2023. However, concerns linger regarding inflationary pressures and the Federal Reserve's response, with expectations of multiple interest rate cuts in 2024. The US market's resilience contrasts with uncertainties in China, where equity markets struggle

despite efforts to stimulate economic growth. These dynamics have implications for Australia's export-driven economy, particularly in sectors reliant on global demand.

Looking ahead, the Australian economy faces both opportunities and challenges. While efforts to address inflationary pressures and stimulate economic growth are ongoing, uncertainties remain regarding the effectiveness of policy measures and their impact on consumer behaviour and business sentiment. As such, navigating the financial landscape in 2024 will require a balanced approach, considering both macroeconomic indicators and sector-specific trends.

For personalised assistance navigating the complexities of the current economic climate, consider obtaining bespoke financial advice before making any decisions. Reach out to Stonehouse for comprehensive guidance to help you make sound financial decisions in 2024 and beyond.

Contributed by

Kane Livingstone Director, Stonehouse

0400 080 998

kane@stonehousegroup.com.au

Bask Restaurant Owners: Jess Coolican & Jack Madden

After two successful years at Eumundi, Jack Madden and Jess Coolican have relocated Bask Restaurant from the hinterland to Peregian Beach, where they’ve also taken on the much-loved local institution Baked Poetry.

I recently spoke to Jess about what prompted the move and why it’s a homecoming for the couple in several ways.

Bask Restaurant has been incredibly popular and successful, earning the couple a coveted Chef’s Hat. “We were incredibly humbled to be acknowledged by the Australian Good Food Guide with a Chef’s Hat in our first 18 months,” Jess said. Baked Poetry was where Jess had her first job, so she was excited about

Baked Poetry as “a local institution and a big part of the heart of Peregian and the local square”.

“We’re working with Lollo [the previous owner], with a plan to build out the bakery side of things as we continue to grow,” Jess explains. “We love Eumundi,” Jess says. “But Peregian has always been home.” Her partner and chef, Jack, has close to 20 years experience including working at Edinburgh Castle in Scotland, where he cooked for the Queen and Prince Philip.

Jess says their philosophy is to build relationships with local producers and this will remain in Bask’s new location.

“We are passionate about local producers and fresh seasonal produce,” she says.

“We love the idea of bringing those suppliers and the small family farms, as well as their stories, to the table with us. It's a big part of our menu and the decisions we make around it.”

Bask Restaurant is located at Shop 3-4/218 David Low Way, Peregian Beach. Bookings can be made at baskrestaurant.com

Written by Robbie Neller Director / Sales Agent

0473 577 828

Noosa’s property market: defying the odds

The resilience of the Noosa region’s property market remained unshakeable in 2023, despite a backdrop of interest rate rises, cost of living pressures, and geopolitical uncertainties.

While some markets fared better than others, a pent-up demand combined with a shortage of available properties kept a floor under prices in most cases, with some huge sales achieved.

Queensland’s biggest residential property sale of the year was inked in a hush-hush deal understood to be worth $28 million, making it the state’s third highest home sale in history.

The beachfront property occupying more than 3500 sqm of land with a 62m beach frontage at 33 Ross Crescent in Sunshine Beach last sold in 1987 for just $200,000.

Owned by the original owners for the past 36 years, records show they built the current house in 1989, and the photos indicate they have made few improvements since.

Sunshine Beach remains the most expensive suburb for houses in Queensland, ending the year with a median house price of $2.38 million, according to CoreLogic, while Noosa Heads is the priciest for units at $1.7 million.

24 Noosa Parade in Noosa Sound fetched $16.5 million in September, 26 McAnally Drive, Sunshine Beach sold at auction for $13.5 million – a new suburb record for a non-beachfront house, and 46 Driftwood Dr, Castaways Beach, changed hands for $13.3 million.

Notable sales in Noosaville this year include 38 Saltwater Ave, which sold for $8 million in January, 17 Wyuna Drive, which fetched $8.7 million, and 177 Gympie Tce, which sold for $6.4 million at auction, setting a new house record for the popular riverside terrace.

In Noosa Heads, 2/29 Allambi Rise changed hands for $7.6 million and 11 Key Court fetched $8.5 million.

There remains a backlog of buyers eager to invest in the region, with many realising in the latter half of this year that prices were not going to drop as hoped after the pre-Covid boom.

Looking ahead into 2024, it’s hard to see a slowdown in the region given supply remains limited, overseas and interstate immigration is strong, and the real possibility that interest rates may start heading south by the tail-end of the year.

Cashed-up downsizers and good numbers of expats and higher net worth locals will be chasing limited listings – and Noosa’s enviable lifestyle will no doubt be the beneficiary.

Elizabeth Tilley Queensland Real Estate News Editor