06 May 13
Predictably there is now pressure in the marketplace for new stock as buyers come up empty, in their property search. This has been most evident in the mainstream residential market and has crept into the upper end of the market since January.
We are only now seeing signs of this pressure on the holiday rental, investment market, which traditionally is the last to move.
We sold $14 Million in April, following a big March of $23 Million. It is unrealistic to expect this turnover to continue and we are likely to see a drop in sales as the market pressurizes. This turnover has not yet lead to increases in sale value.
It’s our view this will come in time but is currently held back by inconsistent confidence. There is every chance a change in government will bring this renewed optimism across the nation which ultimately results in activity in the real estate market.
This is needed to push popular markets like Noosa along to a state of steady increases in value.
Long term changes will keep the process rolling, such as retiring baby boomers dramatically increasing in number and moving North to our warmer climates. Increasing business confidence and profits will get the nation spending again.
A fall in the Australian dollar would do wonders for Noosa’s tourism industry, resulting in more overseas visitors and more domestic travel as overseas destinations become more expensive to visit.
A lower dollar will result in an increase in foreign investment which flows through to our market place.
There is a road to travel before we see prices shifting strongly into positive territory, however the good news is the process has well and truly started.
The Seahaven Resort is currently shut down for a $10 Million makeover, whilst the Sheraton Hotel is also being refurbished, with $10 Million being spent on the building.
Even Jacaranda is getting a facelift with a reported spend of some $2 Million to improve the building.
Be sure to visit these buildings when you’re here, these people are investing in the future of the area and such action will change the face of Hastings Street.
0412 764 370