Strong sales continued again this month here in Noosa, rather than another recount, I thought to answer the most common question being asked out in the marketplace, ‘Where do I see the market headed?”
It is always dangerous territory estimating the future of any market so let it be known that my opinions always remain fluid. Throughout my 28 years selling here in Noosa, I have lived through every market, seen three booms and one hell of bust and this has given me a comprehensive and unique perspective.
When thinking of where the market is headed, it is easy to mention firstly that, lending remains exceptionally cheap and Aussies have a unique love for real estate. The RBA have stated they don’t expect a rise off 0.1% until 2024 at the earliest! so while interest rates stay so low, the market has no reason to pull back, as long as there is something to buy.
Even the government loves real estate at the moment! with the property market being their most valued weapon against circling economic woes and for this reason alone, offers confidence in the protection of Australias’ most important economic market. And just in case you still have your doubts, even if interest rates rose a quarter of a percent, every quarter for 2 years, it would still be record cheap borrowing, so it is easy to see how that puts years on the consistency of this market. GDP is forecast to expand by 4.75% by Dec 21 and unemployment expected to drive down to 4.5% by 2022. You could say it’s starting to look a lot rosier and set to stabilise for some time.
Is this the best of it?
All this being said, I know people and real estate, so for Noosa, currently in a frenetic, high pitched boom, I suspect the edge will come off when international borders open and Australians attention turn to overseas travel and investment, and off of their love for bricks and mortar. It is at this point that we will come to see the Aussies living overseas, the ones that haven’t already brought their money back home, eagerly return followed closely by all numbers of foreign buyers searching for a base here should these pandemic outbreaks happen again.
Just recently REALESTATE.COM.AU confirmed to me that searches for Noosa made by with UK residents more than doubled during lockdowns last year as well as strong interest by New Zealanders.
A Fundamental change
Lastly, the big cultural change that seals the deal for every regional lifestyle destination like Noosa across the country.
There has been a clear social shift due to Covid19. Business has been forced to realign and re-assess practices and now like no other time before, working from a private location is a permanent reality that is an accepted norm. The business landscape has changed forever and Noosa is one of the first destinations sought by these lucky few who have the ability to work and buy here. This new life for many is supported by greatly improved global access via the Sunshine Coast International Airport and growing road and transport infrastructure. Can you imagine what further impact the high speed internet submarine cable now laid from Guam to Queensland via Mudjimba https://www.sunshinecoast.qld.gov.au/submarinecable will have on the Sunshine Coast? Business must be considering relocating to the coast.
Is there anything on the horizon that could change this trajectory?