Noosa Market Update: A Look Back at 2024 and What to Expect in 2025

At times, the Noosa market rides along behind the strong Sydney and Melbourne markets, with high demand, solid sales volume, and capital appreciation. At other times, the southern markets are going crazy, and Noosa is just plodding along. Then occasionally, we have a year like 2024, where Noosa has gone gangbusters while southern markets have been patchy or sluggish.

I’m still putting this down to cultural shifts. Work practices post-COVID remain very different from before 2019, allowing continued Northern migration and sustained demand. Heavy property taxation in Victoria, still grappling with post-COVID state debt, has pushed many Victorians to move north. While Sydney buyers may not have had such clear-cut reasons, the lure of a better working or living environment likely played a role. The Brisbane market also remained strong, and we’ve seen a steady flow of buyers selling there to purchase in Noosa.

All of this contributed to fairly consistent demand throughout the year, except for a flat spot around May and June. Was this because everyone was traveling overseas? It certainly felt that way.

With limited supply, it’s no surprise we saw a buoyant market. There were record sales at the top end, and while time on market stretched slightly, consistent sales were seen across all price points. Pricing had to be competitive, but once a property hit the right zone, it sold swiftly.

This trend continued right up to Christmas Eve and beyond. For instance:

• 129 Shorehaven Drive, a large single-level home north to water, sold in the $5.6 million range.
• 11 Masthead Quay, in Noosa Waters, lasted just five days before selling in the $6.2 million range.
• 94 Shorehaven, sold off-market for $2 million, is set to be renovated.
• 5 Janet Street, riverside in Noosaville, sold for mid-$2 million to be rebuilt.
• A two-bedroom Hastings Street apartment in The Sebel sold in the $2.1 million range.

There were also standout sales by others, including a $30 million sale on Noosa Sound and a $10 million sale on Saltwater Avenue. Once you delve into these figures, it’s clear the market had a strong year.

What’s Ahead for 2025?

The magic question everyone asks: what do I see happening this year?

I expect much of the same leading up to the federal election. Even if there’s a slight downward adjustment in interest rates, it’s unlikely to significantly impact Noosa. If southern markets pick up, it can only be good news for us. By mid-year, Melbourne’s property glut should ease, which might bring more buyers north with bigger budgets.

Town planning amendments, however, are set to have a significant impact. Sellers need to price their properties realistically and avoid being coaxed onto the market with unsubstantiated promises of high sale prices. Buyers, on the other hand, should understand that availability in Noosa is exceptionally tight. Any assumption of a weakening market is likely wishful thinking. The number of buyers needed to soak up what little availability exists is almost ridiculously low.

Challenges in Luxury Home Buying

Luxury home buying remains tough. Building costs are unpredictable, sites are hard to secure, and those holding luxury homes often don’t want to sell because downsizing isn’t easy. Duplex and unit development is coming to an end, and luxury single-level apartments are either unsuitable or closely held. This leaves many sellers hesitant to act, which keeps stock tight.

If you’re looking to buy in Noosa, I recommend buying to renovate. Building costs seem sharper and more predictable, and you can put your stamp on a property, potentially gaining some capital appreciation in the process.

Town Planning Amendments

The changes to town planning are worth noting:

• Building three-bedroom duplexes is essentially finished. New requirements have made them unviable, and the only duplexes you’ll see are those already approved under older plans. If you see one you like, buy it – there won’t be more.
• Homes on high or medium-density sites are also ending. Right now, there are applications across town seeking approval before the cutoff date. These prime sites, often waterfront or with extensive views, suit homes better than two-bedroom units (remember, three-bedroom apartments can’t be built anymore).

These changes will significantly impact downsizers and families alike, creating a knock-on effect in stock availability.

Short-Term Letting (STA)

The approach to short-term letting in Noosa has shifted from simple planning changes to what feels like an attack on property rights. To suggest STA restrictions would create affordable housing was always a stretch – and it hasn’t worked. Noosa will never be “affordable” in that sense. Many owners have simply locked up their properties rather than convert them to permanent rentals, as predicted.

While it’s vital to protect our community environment, we need to be careful not to kill the golden goose. Noosa is a resort town and a holiday destination – and that needs to remain central to its identity.

Looking Ahead

I’m anticipating a strong start to 2025. I’ll be working hard all year in case the market shifts after an election date is announced. If you’re considering buying or selling, now’s the time to plan strategically. Reach out if you’d like to discuss your options!

Dan Neylan

Director