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It has been a year like no other for real estate in Noosa. Agents were catapulted into hyperactivity soon after the Covid-19 pandemic began as people focused on collapsing interest rates and the benefits of alternative living and holiday destinations.
The sea and tree-change effect became the strongest ever and Noosa was one of the greatest beneficiaries, recording high sales volumes plus the highest price gains in Queensland, with houses recording 15.4 per cent annual growth, and a median price surpassing $900,000.
Noosa has long been known as the jewel in Queensland’s crown which leading agency principal Tom Offermann said the figures supported.
“It has also been named the most expensive shire in the state, but I think it is more accurately described as the most valuable in the state.
“An annual return on investment over 15 per cent is incredible; however, some of Noosa’s most sought-after locations such as Noosa Sound have been averaging capital growth of more than 15 per annum per annum for the past 46 years.
“So, will it continue?” Mr Offermann muses.
“Of course, it will. Property value is never a straight-line graph yet you can always count on it pointing upwards long-term.
“At this rate investors will double their money every five years, something I have experienced throughout my career.”
Mr Offermann attributes the phenomenon to continuing superior local authority governance and the shire’s unique natural resources and climate that attract an amazing community.
“All these factors combine to underpin a property market that has more potential than any others in the country. It’s highly desirable and very tightly held.”
If 2020 came as a completely pleasant surprise for the property market, what about 2021?
“We were wondering if it might slow down a bit after the summer holidays, but as it turns out the market for the first quarter has out-performed every quarter of 2020.
“Auctions are achieving approximately 90 per cent clearance rates. Property listings remain tight, and there’s an abundance of buyers waiting for the right property.
“It is not unusual for a property being marketed to attract up to 200 enquiries which ultimately converts to five or more bidders on a property.”
But when it comes to thinking buyers will pay anything Mr Offermann is adamant that is not the case.
“Buyers have a wealth of research available to them and while they know the market is strong and they may have to pay a premium to get what they want, there is always a limit.
“Finding that limit is where a great agent is a property owner’s best weapon.”
For people looking to buy it is never too late. Value properties are everywhere and Mr Offermann’s simple investment advice is to buy in the best location your budget allows. Consider it a long-term investment. “In the current market it is important to be ready to act fast, and have pre-approval if you require finance, because a property can sell very quickly, sometimes never hitting the market at all.
“One of those properties was apartment 4/Hastings Park which sold earlier this year for $8 million. By the time the first advertisement was published with an asking price of $8.2 million, it had already been sold to buyers who had been waiting for this type of property.
“Hastings Park is an exclusive complex of just nine apartments tiered up the hillside which affords each apartment a commanding view of Noosa Main Beach, Laguna Bay and beyond, plus the convenience of being right on Hasting Street. Currently if we had another 10 like this to sell that would not be enough.
“There is a lot of financial weight behind this market, with a lot of extremely capable buyers ready and ready to act when the right property comes along.
“Our average transaction value for the first quarter was over $3 million which is well into record territory, even though it included many sales under $1 million with the most affordable being a one-bedroom apartment in Peppers Resort, which sold for $492,000.
“There are heavy bookings for Easter and expectations are it will be a bumper sales period.
“It was reported recently one in six people in capital cities are considering a sea or tree change so inevitably many will be here assessing Noosa for their next move.”
