MARKET REPORT - JUNE 2007

Real Estate activity over the last six months has increased considerably with the number of properties available for sale substantially reduced.

The effect of this is a firming of prices; particularly at the lower end i.e. sub $600,000. However, considering most of the market has been fairly stable since late 2003 it is more than likely we are just starting to see the beginning of a new upward trend.

There have been a couple of standout exceptions to the above and this has been mainly at the higher end. These areas have been Noosa Sound waterfront, Little Cove, Hastings Street Beachfront and Sunshine Beach - in all these areas, demand has outstripped what is a very limited supply.

The other notable trend is the strong firming of residential rentals, (still nothing like city rentals).

Noosa's population growth has slowed over the last five years and its estimated we've had an increase of just in excess of 3,000 people during that time. It's estimated our population is around 45,000 whereas Maroochy Shire is 142,000 and Caloundra is 87,500.

We believe there are several reasons for Noosa's considerable lower growth “

1. We've run out of subdividable land and therefore Noosa's population cap is taking effect.

2. The second reason is the relatively high entry price to buy into Noosa “ almost nothing under $500,000 and a good home not needing renovation starts somewhere in the mid $800,000 range and can of course go as high as $8 million for an exceptional position.

Sunrise Beach has an entry price of $500,000 and Tewantin's entry price is around $350,000 for a good quality but modest home. In these areas you would probably need to add another $100,000 to $200,000 to the figures just mentioned for a good quality home so affordability is out of reach for many.

These restrictions in our population growth are delivering a wonderful lifestyle and coupled with Noosa's climate, natural beauty encompassing our beaches rivers, greenery and National Parks together with excellent shopping, medical facilities and easy to get around and still with close proximity to Brisbane makes it “ not only a great place to live but one of the best realestate success stories with a very bright future.

For more detailed information on a particular property, please contact our office on 07 5447 3855 or email us at info@dowlingneylan.com.au.

Kind Regards

PETER DOWLING