Queensland’s Noosa packs a bunch when it comes to attracting wealthy property buyers

Noosa has always drawn holiday-makers, so it is not surprising that property in the Queensland coastal is not tightly held but also fiercely thought for.

The 74 Upper Hastings St, Noosa Heads site which will be redeveloped.

Queensland’s Noosa continued to attract heavy hitter holiday-makers over the summer, including Sydney publican Arthur Laundy and former NSW deputy Liberal leader Bruce Baird, while buyers competed for a run-down cottage above busy Hastings St.

Agent Tom Offermann of Tom Offermann Real Estate said there are weren’t any signs of the luxury market in Noosa softening, despite successive interest rate rises.

The real estate agency hosted its first 2023 auction last weekend with seven bidders competing for 74 Upper Hastings St, Noosa Heads, which sold for $5.75m. The Victorian buyers plan to build a home on the site, which had been held by the one family for more than 50 years, Mr Offermann said.

74 Upper Hastings St, Noosa Heads.

“There’s a reluctance to part with Noosa property which is holding prices firm,” he said.

“There continues to be a backlog of buyers that have a lot of enthusiasm and the cash to buy in prime locations. Nearly all of them are east coast Australians.

“It surprises many of us in the industry that the luxury end has been so resilient.”

Mr Offermann’s top picks in the Sunshine Coast gem were Middle Cove, Sunshine Beach and Noosa Beach due to its water frontage and proximity to the main beach.

Houses in Little Cove have achieved more than $10m in sales, while properties with prime water views have sold for about $20m.

“Every sector of the market has been in short supply of listing and while buyers are not as frantic or in the same numbers as they were … properties are still generally selling within 30 days,” Mr Offermann said.

In Sydney, McGrath Estate Agents chief executive John McGrath said the luxury residential market had withstood the recent market headwinds better than any other market sector.

“A combination of less reliance on borrowings and a supply of high-net-worth buyers far outweighing available listings has ensured strong prices throughout 2022 … and will extend through 2023,” Mr McGrath said.

The view from the deck at 19 Marine Parade, Byron Bay.

“I anticipate the return of expats to continue, as political and economic challenges exist in many regions of the northern hemisphere.

“These underlying factors are highly likely to continue going forward so premium property prices are expected to remain strong indefinitely.

“The big three cities (Sydney, Melbourne and Brisbane) should lead the way as the weight of money is heavily skewed there.

“Added to this, an expectation of a significant increase in high net and cashed-up immigrants arriving over the next two years and an improving economy in 2024, the top end is unlikely to see any price movement other than up.

“The strongest areas will continue to be the well-established luxury precincts in each capital and I expect continued demand for lifestyle pockets such as Southern Highlands, Mornington Peninsula, Byron Bay and Noosa.”

McGrath is offering a prime Byron Bay property fronting 19 Marine Parade through its McGrath Byron Bay agency on behalf of former graziers John and Ilone Small.

The three-bedroom property, opposite Wategos Beach, which has two street frontages and occupies a 790sq m site, features a three bedroom, north-facing house with 180-degree views. The auction is slated for February 23 and although there is no price guide, the buyer will join neighbours including Afterpay chief executive Anthoney Eisen, F45 founder Adam Gilchrist, art dealer Steve Nasteski and former Swisse vitamins owner Stephen Ring.

Further south, the areas most in demand include the prime inner-Melbourne suburb of South Yarra, where historical mansions and new apartments are neighbours.

While the performance of multimillion-dollar homes are too early to tell, a rise in the “ultra rich” among Gen-Xers has RT Edgar real estate agent Antoinette Nido forecasting a strong year.

The property at 19 Marine Parade, Byron Bay and its neighbours.

“The big thing is that there is a rise of the ultra rich that have made a lot of money in technology … I’m currently working with a number of young entrepreneurs that have made a lot of money very quickly and are demanding a slice of the top-end luxury market to call their own,” Ms Nido said.

She named South Yarra, Armadale and Toorak as the best areas for growth due to their proximity to schools, parks and main streets.

“An influx of expats and well-heeled migrants are coming into the market and they’re demanding, they’re cashed up from anywhere between $10m to $40m,” Ms Nido said.

“I had a buyer who flew in from London, who is a Saudi, and she had $40m to spend, and I thought ‘What can I sell’?”

RT Edgar agent Will Hocking said newly renovated properties would maintain strong demand despite interest in apartments taking a dip.

His recent offering of 33 Hawksburn Rd, South Yarra – described as a home “out of Hollywood hills” – is the perfect example for the contemporary residences buyers are seeking.

“Stonnington has not been as heavily impacted compared to the outer rings of Melbourne,” he said.