19 May, 2026

The Market, The Budget Yet Noosa Keeps Moving On 

The Market, The Budget Yet Noosa Keeps Moving On 

The Noosa market continued to have some high-end sales over the past month, particularly off market for long held prime positions these are the exception. The top end of town has been slower with price compromises being made to get homes sold this was particularly evident in the last weeks leading to the budget announcement.

General sales were slower but consistent with good demand in the bottom end. Generally, there are buyers for everything in the market as long as it is priced attractively. With the Budget announcement and changes to property investment, we expect the market to now move on with different agendas for property investors.

It is likely, we will see investors retreat, seeking better investment opportunities in other asset classes, meaning less competition for first and second home buyers. Property prices on established dwellings will be reset where rents don’t cover servicing costs, as negative gearing is removed, Noosa’s lack of supply will buffer this to some extent. Where it could be felt is investment decisions led by capital growth rather than income return, this is particularly relevant to holiday unit sales, now there will be the absence of negative gearing and capital appreciation will be taxed differently, this will change investors decisions to buy, the primary personal use that attracts buyers to these investments will become more important than ever.

The principal place of residence will be seen as the best location to place funds, as it remains tax-free. Some investors will sell their investments and their existing home to buy a bigger, better principal place of residence. This will result in buyers coming out of Sydney and Melbourne with a larger budget to buy in Noosa. 

Investors are also likely to hold their existing assets for the existing negative gearing and capital gains tax benefits. The big losers will be renters unfortunately, as this budget does nothing to create greater supply and only makes investment less attractive weakening rental supply in places already built out like Noosa. When costs increase only 2 things eventually happen, rents go up or investors sell and often the buyers are not renters or investors, so rental demand remains and supply shrinks.

With the Budget behind us we all know the playing field and buyers will now move forward with their plans, the cost of living and general economy remains top of mind in their buying journey, regardless activity will increase over the coming weeks. Principal place of residence sales will dominate the market over the coming months, this is not a big change for us as most purchasers are buying for this purpose or wealthy enough to pay the outgoings of owning a second residence.  

Many aspects affecting the greater Australian market are not felt in locations like Noosa, for instance we have very few first home buyers, our investor market is motivated by different drivers such as personal use or long term plans to reside, so we don’t see the full impact but we do feel a knock on affect from how these things affect the capitals, only time will tell.

 

Top actions to take 

Sellers 

Retain assets able to be negatively geared

Release assets not geared and poor performing to upgrade family home for tax free capital growth or purchase well positioned new stock.

Review assets held in trusts

Consider higher yielding assets such as commercial

Review your portfolio with your accountant

 

Buyers

Understand that Noosa is not Sydney or Melbourne, we don’t have a large supply of anything, if you see the right property move to purchase don’t be too tough, you have a moment in time where competition is still working out their next step, particularly coming out of southern states.

Secure fixed interest rates before further rise’s

Investigate new off plan stock that qualifies for negative gearing

Purchase subdividable land to be developed as new housing stock

Consider higher yielding commercial that can positive gear

Don’t assume existing investment apartments will drop, move on well-located property now for principal place of residence

the market will continue to escalate in value due to limited supply and increasing replacement cost.

Take a long-term view on purchases unless you’re a seasoned speculator.

 

Dan Neylan, 

Director