Market Report - Spring 2015
Spring marches into Noosa
Buyer attention is coming into focus on the Noosa market as the spring selling season kicks off and meets the oncoming tide of interstate visitors eager to shrug off the last few icicles of winter.
I have always said “Come the start of spring they will all be coming over the hill with their cheque books in their hand” –
Q. What will they find this year?
A. Very limited amounts of prime stock.
While the competition for property in Sydney and Melbourne has driven their markets higher it has now made the Noosa market look like very good value. There is no doubt that our market has come off the bottom but still represents great buying.
The start of this year saw a strong and steady flow of investment money flowing into bricks & mortar from investors looking for security, taxation relief and a better return than bank interest or the volatility of the stock market. This intensified the market for the self-managed superfunds investing in the $500k to $1 mill market.
I think it has taken much longer than anticipated to recover confidence since the GFC hit. However, this is now definitely behind us and the pure residential component to the Noosa market is coming into a new growth phase, with strong confidence being shown from residents within the Noosa market who have taken steps to upgrade their positions. They see real value in the very restricted supply available in the prime positions that have come to the market in recent times. We are seeing older homes in prime spots being demolished to make way for modern architect designed residences. Vacant land in Little Cove, Noosa Sound and Sunshine Beach has been snapped up and new building projects enacted.
The “Smart Money” has been on the move into the prime end of the market for almost a year, largely unnoticed. I suggest that the first mover advantage is being taken up and those securing long term value in prime positions are going to be well rewarded in the coming year. Once some of these prime opportunities have been taken out of the market and supply subsequently declines we will become aware of just how undersupplied the Noosa market really is at this end of the market.
At the same time, while the market is still in transition, we are seeing existing listed properties selling under replacement value, especially those properties that have been in the sale process since last summer. Buyers need to act on these properties while the supply of them still exists. I have seen a number of value buyers missing out on well-priced properties thinking that better value may pop up around the corner. They are simply not popping up…..