Spring Selling Surge: Are You Ready to Take Advantage?

Generally, it has been a quiet period for real estate across Noosa. One only has to look at auction clearance results and time on the market to see this.  Equally commercial sales and leasing activity has also slowed which completes the overall picture. I attribute much of this to two factors: the cost of living, which has buyers delaying their decisions, and the fact that those with cash in the bank are comfortable receiving reasonable interest—higher than they’ve seen in years—and are in no hurry to release funds unless the opportunity is valuable enough.

The second factor is the absence of Victorians in the marketplace, who traditionally buy during winter visits to escape the cold. Victorians are currently selling investment properties as well as principal residences due to hefty land tax changes now being imposed on them. Many landlords have had enough of the onerous legislation under the Victorian Residential Tenancy Act and are releasing rental properties for other investments. I hate to say, "I told you so," but this does nothing to help the supply of rental properties. Victorians can’t help but want to sell in Spring, so we expect a lot of properties to come onto the market in Melbourne at that time. It will likely take until the end of Spring and early Summer for these properties to settle, and for these sellers to be in Noosa looking to purchase. This momentary quiet period creates an ideal opportunity for buyers to get in and buy well before we see prices move forward.

Moving into Spring, we expect Noosa's activity to lift. There is still very little on the market, so it won’t take much to see current listings sell to be replaced by new listings to the market. The reality is the edge has come off prices, and vendors need to adjust their expectations to see action, as buyers are under little pressure to act. Despite this general sentiment, it seems short-lived, with Sydney still tracking well and Brisbane very hot, in comparison time on market is down to just 19 days with strong interest now coming out of Brisbane and into Noosa.

There are still some record sales occurring. A beautifully renovated home on Saltwater Avenue in Noosa Waters sold for well over $9 million, indicating that quality will attract a good price, and presentation efforts are a wise investment when selling. Also notable was the sale of 19 Key Court on Noosa Sound an inner canal location, the house was rebuilt and renovated by builder Damien Davidson selling for $13 Million.

We have launched the final Sky Home in the Hale Lau Hala development on William Street. These luxury single-level apartments offer the finest finishes and are attracting immediate interest. We have also listed one of just two of the remaining old homes on Gympie Terrace, the 2-bedroom cottage is for sale at $3.5 Million sited on a 460 sqm allotment zoned for apartments, we feel it really suits a home site due to the land size, subject to council approval to do so.

Now is the time to get organised to sell this year. Waiting too late could have your sale impacted by the announcement of a federal election, which tends to make buyers hesitate. For best results, getting on the market and sold this Spring will put you in a great position to purchase. Possibly, with a change in government, we may see a tangible sense of confidence next year, leading to upward pressure on real estate values.

Building Prices Underpin Property Values

It is expected that building costs will continue to rise in the coming months, with the latest increase being the cost of concrete. Labour shortages aren’t likely to be solved soon. Some of the luxury homes you might see being built around town are costing in excess of $9,000 per square meter to construct. With the cost of building and renovation increasing like this, it stands to reason that well-maintained and presented homes will be more desirable over the build-or-renovate option. This can’t help but underpin the values of existing homes, particularly those that need little or no building work.

Permanent Rentals

The rental market remains tight, but prices have flatlined at the current peak, despite council efforts to reduce Airbnb as a solution, which, misguided as it is, has led to the proposed rezoning of areas to high density, with 1-bedroom development favoured. I am not convinced the rental market even wants 1-bedroom units, let alone developers wanting to take on the risk of building them. Furthermore, these rezonings are all in the wrong places—where land values are too expensive, or, in one case in Pomona, too far from public transport and not in keeping with the village environment of that township. One must wonder, what were they thinking?

In my humble opinion, the one area they got it right was affordable housing on Hoffmans Road behind Noosa Civic. To me, that makes sense, as it doesn’t add to congestion or affect the amenity of Noosa Heads or the Noosa riverside area, although, it can hardly be seen as affordable given construction costs. In previous updates, I’ve shared thoughts on density planning—something you don’t need a degree in urban planning to figure out. None of this will have a great impact on available rental stock as we continue to see landlords giving up on letting, selling and buyers moving in to renovate and take up residency.

Dan Neylan

Director