THE MARKET OUTLOOK

WRITTEN BY ELIZABETH TILLEY, NEWS CORP QUEENSLAND REAL ESTATE NEWS EDITOR

The fear and uncertainty that gripped the market earlier this year seems to be thawing coming into winter, especially in ever-sunny Noosa.

While there is still no shortage of buyers for Noosa property, they are generally more cautious and want to know they are not overpaying for a property - except for the top end of the market, which continues to outperform.

Despite the headwinds of higher interest rates, home hunters and investors (chasing strong rental yields) from far and wide are still looking for their piece of paradise in the Noosa shire, provided the price is reasonable.

Many have taken advantage of the opportunity to pounce with a little less competition in the market and sellers’ price expectations easing slightly - although choice is still limited.

The fear of missing out (FOMO) has clearly subsided and negotiations generally require a little more give-and-take from both parties, with sellers coming to the realisation pandemic prices won’t last forever.

Auction clearance rates remains well over 80 per cent, with agents reporting an average of three to four registered bidders per auction.

The prestige sector ($4m-plus) has performed extremely well so far this year, with waterfront properties, in particular, seemingly immune to any softening in the market.

Noosa’s tightly-held, waterfront trophy homes have always been hard to get hold of, but supply continues to be particularly lacking in this space.

Off-market sales are still the trend at the top end of the market, and when an opportunity to purchase one of these homes arises, there is always a willing buyer acutely aware they could wait many months or years to find something similar – irrespective of the price they were willing to pay.

To give you an idea of just how much of a premium buyers are prepared to pay for the perfect Noosa property, take 47 Mossman Court in Noosa Heads, which fetched $23.25m in December.

The Paul Clout-designed waterfront villa was purchased for $10.9m in 2020 by Hancock Prospecting executive Dan Wade, but just two years later, Sydney socialite Jaclyn Gazal was prepared to pay more than double that for it.

In recent months, some of the standout sales in the region include a three-bedroom unit at 2/29 Allambi Rise, Noosa Heads, which fetched $7.6m; a 1980s gem at 17 Wyuna Drive, Noosaville, which sold for $8.7m; and a four-bedroom, waterfront house at 11 Key Court, Noosa Heads, which changed hands for $8.5m.

A quintessential beach house at 51 Tristania Drive, Marcus Beach recently sold post auction for $7.425m, breaking the suburb record.

And, an absolute beachfront, 20-year-old home at 100 Lorikeet Drive, Peregian Beach, sold the night prior to auction for $4.8m. The home had been owned by the same family for more than three decades and fetched a price well above their expectations.

The only way is up, if prices continue to grow at the same rate they have over the past five years.

Recent analysis by PropTrack projected that Noosa Heads would have the highest potential growth of any other region in Queensland by 2028 if prices were to continue to grow at the same pace.

The data found the current median home price (houses and units combined) of $1.95m would jump a whopping 150 per cent in five years to $4.875m, based on what we’ve seen in the past five years.

Whether that same price growth is likely to eventuate is yet to be seen, but there’s no doubt long-term there is no stopping the powerhouse market that is Noosa.