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Market pause while elections conclude
As we head into the pre-election weeks, property sales across Noosa have been subdued.
This tends to happen before every election, only for the weeks following to erupt into a flurry of activity as buyers and sellers “get on with it.” In the meantime, this creates less competition for buyers, an opportunity to negotiate in relative isolation, without the pressure of competing interest.
No matter who is elected this May, Noosa will still be Noosa, one of the most desirable places to visit, live, and invest in the country.
These fundamentals have held true for decades and will continue on, like any other sought-after destination.
The only real difference this month is that you might have the opportunity to secure a piece of it on better terms simply because fewer buyers are trying to do the same thing at the same time. So, my message is: go for it. Things inevitably move on.
Buyer demand through our office remains consistent, bordering on strong, as we lead into Easter.
Like many agents, our biggest challenge is supply. There just isn’t enough of it, something we’ve been discussing since COVID.
The Death of the Noosa Holiday Home
Marketing properties in premium locations like Noosa Sound, Sunshine Beach, and Little Cove, it’s become increasingly obvious: holiday-let homes are declining, replaced by renovated or newly built luxury residences. While Noosa councillors may want to take credit for this shift, it hasn’t been driven by town planning changes, it’s simply the changing face of Noosa.
As values rise and demand for luxury homes increases, cashed-up buyers, many of whom can now work remotely or part-time from Noosa, are transforming former holiday homes into high-end residences. This is especially evident in streets such as Seaview Terrace, Arakoon Crescent, Kareela Avenue, Allambi Rise, Mossman Court, and Witta Circle, to name a few.
With no true 5-star hotels in Noosa, homes have historically been the next best option for luxury accommodation. Now, many guests are commenting on how limited those luxury holiday home options have become. To residents, this may be welcome news, and in some areas, it’s well warranted, but for those hoping that fewer short-term rentals would revive a stronger sense of community, the outcome has been disappointing.
Fortunately, there are still many beautiful places around Noosa to call home. These areas too are undergoing gentrification, as one would expect in an affluent region.
This evolution is part of Noosa’s natural progression. Still, some long-time locals nostalgic for “the old days” are seeking out quieter, low-key pockets of community—and they’re finding them.
We’re just not letting the cat out of the bag… not yet, anyway.
The Market as a Region
South-East Queensland continues to surge, with Northern migration and planned infrastructure improvements ahead of the Olympics adding to the region’s core advantages: climate, lifestyle, and accessibility.
The Brisbane market is having a stronger influence on Noosa than ever before.
In the past three months, various factors—interest rates, investor sentiment, and building costs—have shaped outcomes across the city.
Property prices and growth have remained steady across most suburbs, with prime destinations (especially inner-city) being notable exceptions.
The apartment market remains strong, with short time on market largely underpinned by rising construction costs.
Developers currently face three options:
- Hold or sell a site without developing.
- Build to a lower standard to maintain price—sacrificing quality.
- Build to a high standard and price accordingly to maintain margins.
Most are choosing the third option—creating quality product buyers are willing to pay for.
Some developers are even pivoting to fewer, larger apartments per site, appealing to owner-occupiers who value quality over quantity—arguably a positive shift.
If this trend continues, the average cost of new apartments will rise significantly. This will, in turn, drive up values of existing apartments—or at the very least, support them.
Dan Neylan
Director
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