Buoyant run into Summer

September marked a shift in sentiment in the Noosa property market, with a significant increase in buyer activity and subsequent sales. We sold the last of the luxury Hale Lau Hala development on William Street—a 133sqm single-level apartment with 3-car garaging and a private pool—for $4,550,000, bringing the total sales volume to over $20 Milllion for the project. This price reflects the exceptionally high standard of construction and the desirability of the river precinct and single-level living.

Despite fluctuating markets interstate, the lack of quality/new property supply in Noosa has led to most properties selling relatively quickly. We sold a single-level, North-facing home on the waterfront at Noosa Waters in just 7 days with 20 buyer inspections and proved the desire for three car garaging, modern design on one level continues to be hotly contested. The strong demand resulted in multiple offers, culminating in a sale at $5,680,000. Notably, many buyers who missed this property are still actively searching.

So far in October, we facilitated two sales that were contingent upon the sale of other properties—something we don't often recommend. However, the high saleability of all involved properties and our management of the campaigns led to quick and smooth outcomes for everyone which is something to consider with the right guidance and circumstance.

The top end of the market is performing well, as is the lower end. We sold a home on Jan Street near Noosa Hospital for under $1 million, along with several homes in Noosaville and Tewantin between $1.1 million and $1.7 million. Architectural duplex apartments are becoming increasingly scarce and valuable; we sold a well-designed, oversized 3-bedroom apartment on Weyba Road for $2,499,000 that was previously a prize home. Similarly, new 3-bedroom apartments in James Street have sold in the $3.7 million range, reflecting the desirability of the Noosaville riverside area.

Looking ahead, we are entering the best selling period as we approach Summer and preparation for launch is during this period starts now. We are bringing all available properties to market while demand remains strong and expect this trend to continue into the new year, slowing only with a likely federal election announcement. Holds on interest rates have not negatively impacted Noosa; however, if returns on deposits fall to 3.5% or less in the coming year, we may see a shift of funds from cash deposits into property and other investments, stimulating the property market.

In exciting news, the Calile Development has received the green light.

The 5-star resort development for the tourism-related site on Noosa Hill, part of the Settlers Cove development, is a great outcome for the area, as Noosa currently lacks a 5-star resort.

Additionally, I had the opportunity this month to review the proposed plans for the Tewantin Hotel upgrade. The renovations promise to enhance the hotel while retaining its original charm on the exterior. A notable change is the replacement of the bottle shop with a beer garden offering views over the river to the northwest. This will be one of the best spots to spend an afternoon. The thoughtful inclusion of a kids’ play area makes it a family-friendly improvement that enhances our lifestyle in Noosa. The Noosa Surf now have plans to redevelop the site and adjacent car park, something that is well overdue and will greatly enhance experiences for locals and visitors alike.

These are major financial investments into commercial property here that will greatly improve our area and enhance our experiences.

The rental market remains tight. As is typical during the colder months, there has been a decrease in tenant demand, which did impact slightly on rents in the upper end, limited availability of properties for rent continues, as we move into the warmer months, demand is expected to rise without any significant increase in property availability. Land tax is having a heavy impact on property owners, which will cause many to sell and shorten supply, at the least this will be felt by tenants in the form of rising rents.

Those thinking of selling should be mindful we have just a few weeks left to access suppliers and materials to launch properties to market. 

Contact us if you wish to get the ball rolling on your sale and make the most of this very active market. 

Dan Neylan

Director