Noosa Market Update - Summer/Autum 2023

NOOSA MARKET UPDATE

Summer / Autumn 2023

AROUND OUR LOCAL

Peregian’s surf life saving club is back on patrol

Surf Life Saving activities by Peregian Surf Life Saving Club are back up and running for the first time since 2014, thanks to the hard work of many locals. And, in many ways, it’s as though the heart of our community is beating once again.

Our world-class beaches draw so many people to live and holiday here in Noosa and the Sunshine Coast – and Peregian Beach is one of the jewels in the crown of our local area. But unfortunately as beautiful as the ocean can be, the simple fact is that surf beaches need to be patrolled if people are going to swim safely at them.

As vital though as surf safety is, it’s only one factor in what makes a surf club so important in a region like ours. They’re also part of the fabric of our local community, providing a place for companionship, socialising and children’s sport.

In 2014, the club sadly dissolved due to financial problems, although this wasn’t the first time it has disappeared. In 1974, the clubhouse, which was then just a shed among the dunes, was destroyed by a cyclone. It re-emerged 10 years later, in 1984, when residents banded together to re-establish the club and patrols.

Written by Robbie Neller

Director / Sales Agent 0473 577 828

It is almost as though history is repeating, as Peregian Surf Club’s 2022 resuscitation has also come about as a direct result of the community’s hard work. Lobbying from Peregian residents, led by Leigh McCready has led to Surf Life Saving activities being re-established at the club.

A petition was signed by 1,500 local residents in support of re-establishing the club. That’s no small feat when you consider the entire population of Peregian Beach was 4,737, according to the last Census. A new committee of enthusiastic and passionate people was also formed while Noosa Heads Surf Life Saving Club ensured patrols would continue.

Now life saving is back at the club, hopefully on a firmer footing than ever before, with so many of the local community members playing an active role. Keeping the club running will require the time and commitment of around 120 lifesaving volunteers. But with the community's support, Peregian Beach will once again have its own independent local lifesaving team. It’s as though the heart of the community is beating once again.

Find out how you can get involved with Peregian Beach Surf Club by emailing hello@peregiansurfclub.com.au

SHORT-TERM RENTALS

Noosa is one of Australia’s top holiday destinations with great lifestyle appeal. So it is no surprise that the short-term rental market in Noosa has boomed in recent years, thanks largely to the popularity of Airbnb and other short term rental websites. While this can be lucrative for landlords, short-term letting has also disrupted the local rental market and caused controversy within our community.

The transient nature of short-term holiday lets has been known to change the dynamic in neighbourhoods the world over, especially when Airbnb rentals co-exist beside owner/occupied apartments and traditional long-term rentals. And while Airbnb rentals can help a local economy through tourist dollars, they can also impact the housing market, putting so much pressure on prices that locals can no longer afford to buy in the same area. This can also affect long-term renters, because the supply of long-term rental properties on the market shrinks, as landlords opt for short-term leases.

Written by Robbie Neller Director / Sales Agent

0473 577 828

Here in Noosa, the council has been trying to strike the right balance between allowing short-term letting and restricting it. In October 2021, Noosa Council adopted a new local law for short-stay letting and home-hosted accommodation that came into effect on 1 February 2022. This new local law regulates how short-stay properties can be operated and aims to manage the impact on permanent residents and ensure guest safety.

As part of this law, Noosa Council requires every short-term rental to be approved and reviewed annually, and that you publish the Code of Conduct for Guest Behaviour where your property is advertised and to leave a copy of it on the premises.

The Council’s comprehensive guide aims to remove the misconceptions around what you can and can’t do about holiday letting in our area – to help protect our community.

If you’re thinking of letting a property out for short-term rental in our area, you should read the Council’s guide before going any further.

What you need to know about short-term rentals in Noosa & the Sunshine Coast.

What is the general state of the market at present?

“ The Sydney market experienced an unprecedented level of growth during the pandemic of almost 30% with almost half of that now being eroded. For perspective, if the market enjoyed traditional single digit annual growth, we would be in the same position.”

What do you feel has attributed to the recent changes in the market?

“ Government cash injections, low interest rates and low stock levels fuelled the market during the pandemic and increasing inflation, interest rates and stock levels have sobered the market to more ‘normal’ conditions.”

Have you noticed an influx of people moving back to Sydney now that the pandemic has reached its peak?

“ Yes actually, some, not all. Many Sydney buyers panicked and thought major cities would be more challenging than they have become and the novelty of working from home has worn off for these clients.”

Sydney, Australia

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

“ I believe inflation must come down and the cash rate is the RBA’s only lever to manage this, so until inflation is around 3% rather than 7%+ we will see rates increase, however quality real estate marketed and presented well, will always generate buyer demand.”

What is the main demographic purchasing in the Eastern Suburbs?

“ Mainly locals as the east is a huge area. Mainly investors, first home buyers, upsizers and downsizes. However there are areas within the east that represent better value than others and many are taking advantage of this.”

What would your best advice be to any vendor who is on the market at the moment?

“ Don’t focus on what the market value could have been for your property as it may have not been on your radar at the time. The majority of sellers are circumstance based, not picking the peak of the market. It’s all relative so focus on a great marketing campaign and be competitively priced and take advice from your agent.”

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

INTERSTATE OPINION

Neller Real Estate offers a culture of innovation, collaboration and client care, underpinned by the latest technology and a team-based approach to excellence in customer service.

At Neller Real Estate, our unmatched internal operation practices and the attention to detail of our team mean we’re always available to provide outstanding care, communication and service to every one of our clients. We constantly invest in professional training, mentoring and skills development to keep us one step ahead.

We believe recent trends such as digital marketing and data-driven analysis have transformed the real estate sector, offering new potential for agents to attract buyers and service their clients. We embrace this new technology, complementing it with a collaborative team-based approach to provide an effective and smooth sales process.

In doing so, we combine old-fashioned hard work with the latest, most effective marketing techniques to help find the right buyers for your home and achieve the best price.

Our Director and Sales Agent, Robbie Neller has been serving Noosa since 2004, and his personal sales team collaborates to provide a more comprehensive service than you’d find from stand-alone agents. Supported by real estate agent Jack Brew and Executive Assistant Siena Moffat, Robbie also leverages the combined knowledge and talent of a team of nine other real estate professionals to provide you with an unparalleled level of support. If you are considering selling your home, contact Robbie to arrange a complimentary appraisal.

THE BEST OF NOOSA

Local Find: humble on Duke

humble on Duke is a dining experience on the coast that you’ll never forget. Within a self-described ‘tiny’ Sunshine Beach dining room, Jade, Stacey and their tight-knit team invite you to open your heart and mind, and allow them to take you on a food journey through the best seasonal and sustainable fresh produce our local region has to offer. No two evenings are the same at humble, with chef Stacey’s ever-changing sharing menu being an evolving expression of her creativity. For an experience that is both familiar and nostalgic, yet exciting and new, you can make a reservation online at:

humbleonduke.com.au

Economic update

As parts of the world face inflation challenges, our commodity driven economy is well positioned to weather the storm.

Globally, central banks continue to raise rates, with the Reserve Bank of Australia also maintaining a trajectory of rate hikes, with the aim of reducing inflation but at the expense of short-term pain for the economy, creating volatile financial markets and a very real fear of recession.

If the inflation outlook improves, and more recent indicators have been positive, there could be sharp share market price rises, and if not, higher interest rates will create opportunities by placing downward pressure on valuations. Either way, market timing is challenging to navigate, so holding your nerve and adequate diversification of portfolios is important.

In terms of economic growth, economists believe that Europe is currently in recession and the USA is likely to experience recession in 2023. Thanks to our commodity driven economy, Australia is better positioned economically, but if high inflation persists and the RBA’s current stance of rate increases continues, then the Australian economy may be on track to weaken further.

Contributed by Kane Livingstone Director, Stonehouse

Whilst central banks are increasing cash rates, equities will be volatile, and investors should expect fluctuations in portfolio balances.

If inflation continues to increase (or remains high) then bond yields may increase thereby adding to the volatility of portfolios. Caution is warranted and we prefer allocations to cash-like securities, including floating rate notes currently.

Whilst the short-term performance across all asset classes (except gold) is challenging, it is important that investors focus on the long-term and diversify to minimise risk exposure in a volatile economy. Current valuations across all major asset classes do suggest a balanced portfolio is still likely to return more than 7 per cent per annum over the next 10 years.

Despite maintaining our cautious position across portfolios and our stress on diversification over concentrated positions – we must also caution against being out of the share market, because it could surprise on the upside very quickly should Russia exit Ukraine, or the inflation levels start to drop quickly.

stonehousegroup.com.au

THE MARKET OUTLOOK

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

You only have to take a look back at the sales that have taken place in Queensland this year to realise Noosa’s prestige market has continued to buck the trend.

Low stock levels and strong demand have kept prices at a premium, and the number of confidential off-market transactions have increased at value levels that show significant strength remains for quality properties in Triple-A locations.

While parts of the Sunshine Coast have recorded strong peak-to-trough declines in value this year, Noosa has remained resilient.

A new record was set in Noosa Heads in November when the founder of one of Australia’s biggest yoghurt producers forked out $27m cash for a waterfront home that was not even for sale.

Jalna managing director Campbell McLaren and his wife, Pam, fell in love with the property at 12 Noosa Parade on the prestigious Noosa Sound when they were staying there on holidays.

The previous owner had no intention of selling the prized home until he got the call with an offer he could not refuse. Records show he paid just $5.9m for the property in 2015 and has made no improvements to the home since.

The deal smashes the sale price record for a residential property in Noosa Heads by $7m, with the previous highest sale set by a property at 52 Mossman Court in 2020.

But the biggest reported home sale of 2022 in Queensland was a Shaun Lockyer designed mansion on a 636sqm oceanfront block at 24 Arakoon Crescent, Sunshine Beach, which sold for $28.5m. The previous owners had paid just $4.85m for the property in 2016.

There was plenty of action in Noosa Parade throughout the year, with veteran property developer Kevin Seymour paying $15.5m for a double block on the water.

The 81-year-old plans to demolish the two existing commercial and apartment buildings on the 1120sq m site with a 20m water frontage, and build a “Hawaiian-inspired, resort-style home” for he and his wife, Kay.

Mr Seymour’s daughter, Leigh, also bought the house across the road for $16.5m in August.

And 53 Witta Circle sold for $19.5m to former mining boss turned mindfulness philanthropist, Kerry Harmanis, who owns more than $30m worth of property in the same street.

The Noosa unit market has also shown no signs of abating. Beachfront apartments on Hastings Street are among the most expensive in Australia on a rate per square metre basis, which is evident with the sale of Lot 15 in Tingirana in Hastings Street, which fetched $9m earlier this year – equating to $76,923 per square metre. That’s a record rate per metre for a unit sale in Queensland.

A one-bedroom apartment in the Netanya complex was recently placed under contract for $5.5m, which equates to circa $70,000 per square metre - a record for a one-bedroom unit in the state.

While off-market sales increased in 2022, sales at auction decreased, with many properties being passed in and selling via negotiation afterwards.

A reduction in the number of prestige homes for sale has helped to maintain prices, and interest rate movements appear to have had little effect on the Noosa market so far.

It’s hard to know whether more rate rises are likely in 2023, but ongoing global economic uncertainty could possibly have a flow-on impact to the prestige residential market.

Trying to time the market is always fraught with risk. If you’re looking to buy in the Noosa region, don’t wait around expecting massive price falls in 2023. And if you’re looking to sell, rest assured the market fundamentals of supply and demand are still in your favour.

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