HOT MARKET: Thirty-five properties worth more than $3 million sold in Noosa last financial year.
HOT MARKET: Thirty-five properties worth more than $3 million sold in Noosa last financial year.

MILLION DOLLAR BLITZ: 35 sales over $3m in a year

TRADITIONALLY interstate buyers have predominantly come from Victoria but a sharp up-tick in high-end sales to Sydneysiders in recent years, has seen NSW buyers match the capital coming from Melbourne, according to Tom Offermann .

"Anecdotally, it seems Sydney's increase has trebled in the past decade, while Melbourne buyer activity has remained steady," Offermann said.

"However, in the past financial year Noosa's prestige market has reached new heights.

"The market conditions are the strongest they have ever been and whilst the trend has seen an increase in buyers out of Sydney and Melbourne, fuelling the appetite and key drivers are expats and captains of industry in the tech and finance industries, who repatriated either themselves and/or their money.

"Multiple buyers vying for a property was common, even for the most valuable. And what's even more surprising numerous properties were bought sight unseen."

Generally, last financial year's property market can be characterised across the board as a sellers' market with a shortage of properties for an increased number of buyers.

This provided steady capital growth and new price levels being achieved across most sectors.

 

Tom Offermann.
Tom Offermann. Fletcher Photography PTY Ltd

This financial year began with a bang with the first-ever residential sale of more than $10m of a Noosa Sound waterfront house.

Four more properties in this stratospheric league followed soon after.

Highlights at the premium end were later negotiated at Sunshine Beach for $15.2m and $18m.

The first $10m sale for the 2018-19 financial year has already been negotiated, so watch this space.

In all, there have been 35 prestige sales, that is properties over $3m, in Noosaville, Noosa Heads, Sunshine Beach and Sunrise Beach, of which Tom Offermann agents handled 28.

Offermann Real Estate's research also shows there were 1168 settled sales of houses, units and land with a combined value of just over $1 billion and an average price of $925,000.

In comparison, in the previous year the number of sales were down around 10 per cent, due to the lower number of listings, also the values have risen similarly.

It was also a race to the financial year-end finishing line when 13 properties became unconditional in just nine days.

Four properties were $3m-plus and three $4m-plus.

 

 

Predictions for 2018-2019

INTEREST rates will remain low into the new financial year and little change is anticipated.

Borrowing conditions will remain favourable - a positive sign for real estate values, giving a boost to the resort town's enviable reputation as a place to live, holiday and work its charm on more and more overseas and interstate people.

Holiday rental occupancy rates are near capacity, land stocks for new houses are virtually non-existent, and builders are continually in demand for renovating and re-builds.

"Working with aspiring new residents and investors all day every day gives us a unique insight into the way Noosa is shaping into the future from a property and demographics perspective," Mr Offermann said.

"Knowing what's happening behind the scenes makes us ultra-positive.

"Only blue skies ahead for Noosa.

"There might be some external influences such as a change of government or volatility in equity markets, but overall our future looks secure."

What about buyers?

"OUR dominant non-local resident buyers are Australians living on the eastern seaboard, in capital cities and country areas," Mr Offermann said.

"International buyers, those requiring Foreign Investment Approval, are not as active as many people think, making up just a few per cent of the total market.

"Expats on the other hand have been far more active over the past year, especially at the high-end of the market, snapping up 50 per cent of the six $10m-plus sales.

"One of them said after signing the contract, 'finally we can join the one in 500 club of Aussies lucky enough to live in Noosa'.

"The motivation continues to be split between coming here to live, to invest in a rental property, and to own a second home (apartment or house) where the family can spend precious time together.

"Purposely buying a Noosa property as a lure to attract their children and grandchildren to spend time with them is a growing trend."

No surprisingly Mr Offermann's database is an invaluable asset. There are those from 20-30 years ago who remain active in the property market today, just like their children, the next generation who also relish in Noosa's specific appeal and property values.

Game-changers

THERE are no sites for future large-scale housing or apartment projects so there's no chance that Noosa will become less competitive.

The population cap made sure of that. The elephant in the room is the Sunshine Coast Airport expansion project and includes the construction of the new 2.5km east-west runway.

Increased domestic services and the addition of international flights, particularly into Asia, will undoubtedly have a significant effect on the local economy and make Noosa even more accessible. And more valuable.



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