NOOSA MARKET UPDATE
Winter / Spring 2022
NELLERRE.COM.AU
L O C A L M A R K E T U P D AT E
Despite a variety of changes both abroad & at home, the appeal of the Sunshine Coast & lifestyle we offer continues to endure. to sea-changers. Our temperate climate,
Written by Robbie Neller Director / Sales Agent 0473 577 828
relative affordability in comparison to Sydney and Melbourne, and close proximity to a major state capital is still a strong drawcard. With international borders now open, we may see a surge in expatriates securing properties here, if not to live in immediately, but as future
Regardless of media reports and increased
security, with rent prices and demand for rental
speculation that the market is starting to cool,
properties at record highs. An investment
- and some indicators and signs emerging
in this region is very sound from a financial
to support that premise, the top end of the
perspective.
market in Noosa and the Eastern Beaches is still performing extremely well. Outstanding results continue to be achieved in the prestige sector, with sales above $15,000,000, becoming increasingly common, and price records being set on a regular basis.
As we enter the third quarter of the year, there are many factors at a local, national, and global level that will impact on consumer confidence, which is a huge driver of the health of any economy; including the change of government and new policy directions, natural disasters (and
With border restrictions gone, the market has
their fall-out), wage stagnation / growth, interest
opened up to visual inspections from interstate
rates, job security, and events overseas that
buyers and therefore the sense of urgency has
influence the cost of consumables such
palpably waned. There has also been a gradual
as fuel for example.
increase in stock levels as owners become anxious to capitalise on the strong sellers’ market, keen to maximise the opportunity to sell at the height of the cycle with a sense that it may be reaching its peak.
We are certainly confident that regardless of the change of government and economic challenges – including further rises in interest rates this year, that the Sunshine Coast overall, and particularly the coveted beachside markets
However, there does remains strong confidence
from Peregian through to Noosa, will remain
in the overall robustness of key regional lifestyle
attractive to buyers, ensuring demand will
markets such as the Sunshine Coast and
continue to rise. The future is looking as bright
its appeal to buyers – from investors through
as it has ever been.
L O C A L M A R K E T U P D AT E
Prestige Property Sales across Noosa 24 Arakoon Crescent, Sunshine Beach
17 Cloudsley Street, Noosaville
$28,500,000
$4,500,000
4 Arakoon Crescent, Sunshine Beach
57 Orient Drive, Sunrise Beach
$21,500,000
$4,370,000
53 Witta Circle, Noosa Heads
13 Janet Street, Noosaville
$19,500,000
$4,300,000
58 Seaview Terrace, Sunshine Beach
52 Peregian Esplanade, Peregian Beach
$18,750,000
$3,950,000
2 David Low Way, Castaways Beach
11 Tropicana Rise, Castaways Beach
$18,500,000
$3,715,000
39 Picture Point Crescent, Noosa Heads
17 Captains Court, Sunrise Beach
$16,450,000
$3,550,000
20 Arakoon Crescent, Sunshine Beach
36 Woodlark Rise, Sunrise Beach
$14,250,000
$3,500,000
21 Bayview Road, Noosa Heads
56 Kingfisher Drive, Peregian Beach
$7,900,000
$3,400,000
58 Kingfisher Drive, Peregian Beach
50 Orient Drive, Sunrise Beach
$7,500,000
$3,185,000
10 The Promontory, Noosaville
340 David Low Way, Peregian Beach
$6,000,000
$2,820,000
S O U R C E : C O R E L O G I C & N E L L E R R E A L E S TAT E . P R O P E R T I E S S O L D B Y N E L L E R R E A L E S TAT E & COMPETING AGENCIES.
Jan - Mar 2022
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I N T E R S TAT E O P I N I O N
In this edition, we catch up with Nicholas Yates, a property professional with over two decades of experience listing & selling luxury homes in & around Sydney’s North Shore. What is the general state of the market at present? Market activity has calmed somewhat, with the frenzied buying we saw last year dissipating.
Sydney, Australia
This has had an impact on auction clearance rates which have fallen from figures in the
number of people can now work from home,
low 80’s, down to high 60’s. Despite this there
so do not have to live so close to the CBD
is still a lack of stock hitting the market and
or their workplace. Key lifestyle markets such
any slowdown has been tempered by the
as the northern and eastern beachside areas saw
continued shortage of properties for sale.
a huge amount of demand, and thus dramatic
What do you feel has attributed to the recent changes in the market? The changes can largely be attributed to two
increase of values up to 50%. What do you expect the market to do in Sydney for the remainder of the year and beyond?
main factors – the traditional pause the market
I anticipate that the Sydney market will remain
goes into in the lead-up to a federal election,
steady and that sought after areas will continue
and the forecast of forthcoming interest rate
to perform well, for the reasons I have outlined.
rises. Concern about interest rate rises has
The ongoing shortage of property available
definitely made the market a little nervous
combined with the steep increase in building
and has impacted on consumer confidence,
costs will keep values strong.
particularly in an environment where housing affordability is at crisis levels. How did the pandemic affect the behaviour of your buyers and sellers?
What would be the best advice for any vendor who is on the market at present? There is no better time to sell than right now in the context of the severe shortage of available
During the pandemic, particularly in the midst
property, a strong job market, and historically
of the lockdowns, people spent more time
low interest rates. We should also start to see
at home and reassessed their requirements and
international migrants returning to Australia,
their lifestyle. The advances in technology have
and Sydney is a key drawcard for many reasons
changed the way we work, and an increased
for many choosing to settle here.
AGENT SPOTLIGHT
Jack Brew
Meet Jack Brew, Noosa local & natural communicator - Jack brings global experience, yet a simple & true approach to selling homes in our local community. With a diverse professional background and
Jack is a natural communicator and provides
wealth of global life experience gained from
a level of service to ensure his clients are always
time spent working in the Middle East, Jack
thoroughly informed, and inspires confidence
brings a well rounded perspective to his
with the highest quality strategic advice.
service as an estate agent and a true passion
A supportive and helpful guide throughout the
for what it means to be ‘at home’ with family
sales process, Jack strives to leave no stone
and friends everyday.
unturned in pursuit of the best price possible
Relaxed and friendly in demeanour, Jack has a natural ability to connect with people from all walks of life, and having been born and raised in the Noosa area, he has an exceptional range of local knowledge that greatly influences the success of every campaign he takes his hand to.
for your property as a trusted and valued part of the Neller Real Estate team. W H AT J A C K L O V E S M O S T A B O U T LIVING IN NOOSA
“ I love the beaches and Noosa river. Love the holiday vibe living here brings.” J A C K ’ S F AV O U R I T E P L A C E S T O E AT
“ Pitchfork and Bistro C.”
THE BEST OF NOOSA
Local find: Bask Eumundi Bask Eumundi is the culmination of Chef Jack Madden and his Interior Designer wife, Jess's lived and travelled experiences. With a menu that changes weekly and a strong focus on local and sustainable produce, Bask champions paddock to plate dining. Housed in the Old Bakery Building in Eumundi, Jack and Jess aim for dining at Bask to feel like an extension of their home, like dining at an old friend's house in the countryside. With a wine list that places a strong emphasis on minimal intervention and Australian produced European varietals, Bask aims to serve great food and wine in a relaxed alfresco setting. Bask was recently named in The Australian Travellers list of 'Best New Restaurants in Australia'. It is a must visit next time you're in Eumundi and an exceptional experience right on our doorstep - just make sure you book in early! baskeumundi.com.au
I N V E S T O R U P D AT E
New opportunities arise for astute investors. Our lifestyle, natural beauty and climate continues to put pressure on the Noosa rental market, as opportunities arise for investors to opt for consistency over short-stay leasing. The rental shortage (or crisis as the media
The recent changes to the Noosa holiday letting
labels it) continues well into 2022 with no sign
rules have had an impact on the profile of the
of abating, partially driven by a shortage of
rental market, with many investors (particularly
available rental properties in relation to demand,
those not living in close proximity to their
with the current vacancy rate at 0.7%.
property) now choosing permanent tenancies
Despite the easing of migration from interstate capitals, there is still a sizeable number of people continuing to relocate to the Noosa region from other areas including Brisbane and regional cities - attracted to our lifestyle, natural beauty and wonderful climate,
as opposed to holiday tenancies, with the new regulations make it more challenging to let in the short stay market. They are preferring the consistency of income from the long-term market and the benefit of a property manager to oversee day-to-day management.
with the move facilitated in part by the fact
If you’re an investor and this update resonates
an increasing amount of people are
with you, we would love the opportunity to talk
choosing to work from home.
about how we can maximise your rental asset.
This demand has resulted in upward pressure
Reach me on the details below.
on rents, and a 20 per cent median rent increase in the past 12 months. With the median rental in this region now $795 per week for houses and $515 for units (source: CoreLogic), investors are getting significantly better returns as a result of the spike in demand. This demand is high across all price points including the premium end of the market, with prestige homes also generating attractive yields for investors. We work with an increasing number of investors from this sector of the market, who appreciate our boutique style of property management.
Written by Melisa Neller General Manager 0427 797 672
T H E M A R K E T O U T LO O K W R I T T E N B Y E L I Z A B E T H T I L L E Y, NEWS CORP QUEENSLAND R E A L E S TAT E N E W S E D I T O R
“ Despite the doom and gloom headlines related to real estate of late, boom-time prices will linger for some locations – and I believe Noosa is one of them.” Across Queensland, the market is nowhere near as frenzied as it was in 2021, but demand is still strong and prices are, in many cases, holding firm – even continuing to climb in certain suburbs.
Where last year, homes were selling within
calls and 22,000 online views during the
a day of being listed (if not faster), buyers
marketing campaign.
are now more measured and prepared to wait a bit longer for the right property. While some of the heat is starting to come out of the Noosa region, there is still a shortage of properties coming to market, which is maintaining the supply and demand imbalance. Interstate and international buyers are still showing strong interest, with expats from Hong Kong and Singapore, in particular, looking for prestige properties in Queensland. Off-market sales are the method of choice for these buyers, who have the means to pay a premium for a prestige property. Another factor that will continue to entice people to Noosa is the ease of travel, especially with a new budget airline, Bonza, soon to land
In Noosa Heads, a six-bedroom house with a $17m asking price at 32 Noosa Parade has just changed hands for the first time since the 1980s. And Sunshine Beach continues to outperform, with an oceanfront home in Arakoon Crescent selling for $28.5m last month, and another down the road fetching $21.5m. House values across the Noosa Shire are up 32 per cent annually, with Noosa apartment values even stronger - up 36 per cent over the past year. Vendors who chose to sell last year have reaped the benefits, with data from REA Group showing homeowners in the Noosa shire made an average profit of $357,500 per sale.
at the upgraded Sunshine Coast airport. And
And while prices may not continue to rise at the
it’s impossible to ignore the growth that will
pace of last year, it’s a different story for rents.
come about as a result of Brisbane hosting
The median weekly rent for houses in Noosa
the 2032 Olympic Games.
is now $900, according to Realestate.com.au,
The latest data reveals Noosaville was one of the best performing markets in the Noosa shire over the past three months, with the
with unprecedented levels of demand likely to continue to drive up rents, which is good news for investors.
median house price rising nearly 7 per cent,
I can’t see rising interest rates heavily impacting
according to Realestate.com.au.
the Noosa market - only those households that
A Hamptons-style home in Noosaville sold for $10m earlier this month. The auction was closed to the public because of the unprecedented interest, and while it attracted
are highly leveraged will feel the pinch. Sellers are still in a good position, although they may have to be a bit more realistic when it comes to price expectations.
a smaller number of bidders than usual,
There has certainly been a shift in how
all five were serious buyers. The five-bedroom,
quickly buyers are willing to act, but the desire
canal-front home at 60 The Peninsula, Noosa
to find the right property in a prime location
Waters, attracted some 400 emails, 400 phone
like Noosa remains.
MEET OUR SALES AGENTS
High calibre client service, crafted to match the brilliance of our area. Robbie Neller Director / Sales Agent 0473 577 828 robbie@nellerre.com.au
Joel Nicholls Sales Agent 0421 722 195 joel@nellerre.com.au
Milan Markanovic Sales Agent 0401 008 138 milan@nellerre.com.au
Jack Brew Sales Agent 0458 777 055 jack@nellerre.com.au
Ned Strachan Sales Agent 0460 635 322 ned@nellerre.com.au
Neller Real Estate Shop 11, 224 David Low Way, Peregian Beach, Queensland 4573 T 07 5471 4000 F 07 5471 4001 administration@nellerre.com.au nellerrealestate nellerre.com.au