Noosa Market Report - August 2009

  Well what a difference a month makes, it seems the Noosa real estate market has taken off this month in line with reports we have been hearing of greater sales volume in the cities, I have to say it's very welcomed.

While over the previous two months we have seen sales become increasingly consistent in the bottom and middle markets, it seems the activity is now creeping into the higher end. The coming months could see great increases in the top end of the market where turnover has been slow.

Sales of waterfront homes have increased as have some top end apartments on the beachfront. The apartment market has yet to see a strong turn in activity but it could begin as we draw closer to summer and confidence returns to the market with buyers moving to secure prime positions while they still can.

An interesting sale occurred this month on the Noosa North Shore, a large home currently under construction was sold half finished for in excess of $4 million. The home overlooked the area of the river called the frying pan (which is close to the river mouth) back towards Noosa and Noosa Sound. The property was one of the larger acreage properties and one of only a few that front the river in that area.

None the less the price paid was truly astronomical for the North Shore, the new owner from overseas still has to spend over a million dollars to finish the house off, that's over $5 million in total.

If you're considering buying you are currently seeing the last of the really good buys disappear now. Most of the sales occurring are at a lower level than previous peaks but, they are moving, which is great to see.

It's probably a good time to upgrade to a better position if you have been thinking of doing so, particularly selling and buying in the same market place.

If your property was worth say $2 million at the peak and suffered a 20% decrease in value (like many up market areas in Australia have) that means it will sell today for $1.6 million. If you were considering purchasing a better positioned property that was worth say $3 million in the peak and has experienced the same level of value adjustment of 20% its now worth $2.1 million.

The property you are selling may have come down $400,000 but the property you are buying has come back $600,000, you're in front by $200,000. Of course there are change over costs and taxes to consider, but there are plenty of these changeovers happening at present, a good earn if you can get it.

Kind regards,

Dan Neylan