01 Feb 11
February sales faired better than expected this year given the
natural disasters happening around us. Visitor numbers are down
due to several factors yet despite this, hard fought sales
We are finding the biggest issue in the market is the disparity between the asking price from sellers and the price buyers are currently prepared to pay. It seems as soon as we manoeuvre the asking price within the range of buyers expectations the action happens very swiftly.
A high profile and perfect example of this is the Viridian resort which last week went into receivership. Several weeks ago the banking partner took a more active roll with the onsite sales team and cut prices dramatically to the range buyer feedback and the competition in the general real estate market dictated. Under the new pricing structure the stock has been the hottest thing in town. Most of the forty plus sales to date occurred since this price change; proving the buyers are there if the price is attractive enough.
With over $1.3 billion dollars in cash bank deposits pilling up, savvy investors will be looking for prime locations offering a lot of upside over the coming years. Noosa's prime real estate fits that bill at present levels; levels many of us may not see again in our lifetime. And let's not forget the largest and wealthiest group of Australians, the Baby Boomers. Time waits for no man and retirement is coming ever closer for these wealthy lifestyle-driven buyers. Does anyone believe they have given up their dream of a slice of Noosa heaven?
Of course they haven't. We are starting to see evidence of this group coming back into the market and expect this to grow as time moves on. (Its no coincidence most of the new product built in recent years is geared towards this group - Settlers Cove is a case in point.)
The most important factor many people continue to miss is Noosa hasn't changed "The Product". Which is Noosa still offers the same allure it has for 50 years. The perfect climate won't change, the North facing beach and magnificent headlands won't change, that special lifestyle Noosa offers the lucky few wont change and most importantly the passion of its community to ensure all that makes Noosa special is retained and will never change.
The buying is good in Noosa, for now, but real estate remains cyclic. If 30 years of facts and figures can be trusted as a guide, a period during the most disastrous events both natural and man made occurred, yet still capital appreciation averaged levels that could only be admired, then buyers have a lot to get excited about while current opportunities remain.
It is a matter of no guts no glory.
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