Noosa Market Report - July 2013

Sales in Noosa ticked along nicely again this month. Most sales were under the $600,000 range, however some higher sales were had, the prices achieved can still be described as value. There is a definite shift to property happening at present, our enquiry from investors, while cautious, is lifting significantly as they see the light at the end of the tunnel and think now is the time to move on the value being offered.

Over the past decade property has proven to be a less volatile investment than other classes such as shares, it doesn't offer the liquidity of shares so investors have to think long term.

While investing in Noosa buyers need to consider several factors;

  • Noosa is not a large area so stock can shorten very quickly and price pressure builds.
  • There has been little to no developement in the area for years, especially small unit complexes, there is a solid shortage of new modern stock (this may provide an opportunity to refurbish older apartments for a good return down the track).
  • Prices have come back quite a bit offering good value often below replacement cost, when stock shortens price can only go one way.
  • Buyers of investment units should be clear they won't get the high income yields they may get in the city (this is the case for most coastal regions in Australia)
  • Simply the yields are lower and most purchasing is done for personal use and a little investment, this doesn't mean capital growth won't occur in the right market.
  • When Noosa is hot, it's hot, capital gains fed by desire can be significant over short periods, timing is everything.

We expect a lot of new property to come onto the market after the September election, we also expect buyers to be moving on property, in other words, 'It will be on for the young and old'.

How this impacts on prices is yet to be seen, it's too early to tell. It's likely this market needs a good long stint of reduced availability before there is sufficient pressure for price growth. It's unlikely we will see this happen this happen this year, 2014 could be another story. 

Kind regards,

Dan Neylan
Director
0412 764 370