Summer Sizzled, Despite Property Shortage

Summer Sizzled, Despite Property Shortage

Noosa has been buzzing over summer, as it always does when visitors flock to this very special part of the world. Every year visitors are reminded of how special Noosa is and some decide to make their stay more permanent. The market was very active overall with strong buyer interest across all sectors.

There were some well positioned top end properties that almost sold themselves they are in such coveted positions and smart buyers took advantage securing them. Well-presented homes in the sub $3 million price bracket are being hotly contested. Recently, we sold a mid-80s home in Noosa Heads at a record price after receiving six registered offers  a great example of the depth of demand when the right property comes to market. The lower and middle segments of the market remain very strong and consistent. Its not unusual to receive 60 enquiries on properties priced under $2 million. Overall, it feels like business as usual yet considering Noosa has experienced its lowest property supply in a decade, you might expect even more urgency. The limited stock levels continue to underpin values.

Recent Sales Highlights

Activity across key prestige pockets has been notable:

• Absolute beachfront homes in Sunshine Beach have transacted around the $28.5 million.
• Three-bedroom apartments in Little Cove  directly opposite the beach  have sold in the mid-to-high $6 million range.
• Quality homes in Little Cove have achieved mid to high $6 million results.

On Noosa Sound, there are still excellent opportunities across multiple price points. Older homes on inner canal positions are generating interest around $8 million, while higher quality residences particularly those closer to Hastings Street are achieving up to $13 million. Equally Noosa Waters now demands double digits for its best positions with homes on the market from $10 to $13 Million sited on allotments valued up to high $6million for their prime positions. Its building costs buyers should be mindful of.

These homes represent compelling value when viewed against replacement costs and recent land sales, simply put several luxury homes are being rebuilt in Noosa waters all budgets are over $6 million equally several homes constructing on Noosa sound are spend nothing under $10 Million many have underground basements. It is easy to see what a new architectural home is costing to build these days, compare this to these homes on the market and they are at or below replacement.

For example, 46 Mossman Court is currently offered at $25 million. Prime main river land in this precinct has recently sold between $1820 million for land alone. Buyers are then investing $1115 million to construct new luxury homes on those sites. When you look at those numbers, it becomes clear why existing high-quality homes on the market today may well be viewed as exceptional value in the near future.

There are also several luxury acreage properties available in the hinterland. Anyone who has owned acreage understands how significant the establishment costs can be landscaping, infrastructure, and improvements which again makes many of these offerings highly attractive compared to building from scratch.

Migration and Broader Market Confidence

We continue to see significant migration from the southern states, particularly Victoria. Meanwhile, the Brisbane market remains exceptionally strong, and many Brisbane owners are investing in Noosa. These buyers often have both the equity and the confidence to secure their ideal Noosa property without hesitation. Southeast Queensland is now recognised as one of the fastest-growing regions in the country, and that confidence is flowing directly into our local market.

Permanent Rentals: Still Extremely Tight

While the rental crisis may not be dominating headlines at present, conditions on the ground remain very tight.

Well-presented rental properties are snapped up almost immediately. Competition is intense, and tenants are feeling the pressure. Were also seeing frustration around the level of scrutiny in rental applications. However, with recent changes to residential tenancy legislation providing tenants with broader rights, property managers are understandably cautious and focused on securing the right tenant from the outset.

Why Is Supply So Low?

With the lowest property turnover in Noosa in ten years, weve taken a deeper look at whats driving this prolonged supply shortage.

We clearly identified late 2021 as the peak of the COVID-driven property boom. Strong sales through 2022 began to tighten supply significantly driven by elevated demand and the fact that there has been virtually no new significant land subdivision within the shire for approximately Ten years.

By 2023, 2024 and into 2025, the supply issue has truly started to bite even with a moderation in buyer activity. Across all price ranges, buyers consistently report the same frustration: there simply isnt enough quality stock to choose from. But theres more to it than just limited listings.

Moving home today is not easy particularly for older homeowners. If staying in Noosa they face a limited selection of properties to buy, and the alternative of selling first and renting while they search is often unrealistic due to the severe rental shortage. As a result, many decide its simply too difficult to move and choose to stay put.

At the same time, families are remaining in larger homes longer. Children are staying at home later, affordability is challenging, and renting is less appealing. This is further reducing the natural flow of larger homes back onto the market, as mum and dad hold off downsizing accommodating extended family.

The market favours sellers at present, its the perfect time to be talking to us about selling, a scenario unlikely to change a great deal, based on this limited supply and the pressure on the region, if you are holding off buying waiting for a better time, reconsider, in other areas like Victoria sure, but not here in Noosa, not now.

Dan Neylan, 

Director