Sunny Noosa defies property doomsayers with strong sales
There are few signs of a softening real estate market in Noosa, where in the past week there have been a run of multi-million dollar sales.
Noosa agents are dismissive of the softening national real estate market, saying the holiday region is not suffering from the problems besetting the rest of the country and disputing the RBA’s claim that prices could plummet 20 per cent over the next two years.
Agent Tom Offermann of the eponymous Noosa agency says in the past week there have been $7m, $10m and $19m sales in the holiday region, north of Brisbane, which is seemingly immune against the real estate ills of the rest of the country.
“While we are seeing some evidence of prices going down 5 per cent, we are also seeing some evidence of prices going up 5-10 per cent,” says Offermann of Noosa’s Tom Offermann Real Estate.
Like most Sydney and Melbourne agents, Offermann laments the lack of saleable stock.
“Noosa is deprived of buying opportunities, the market is still very tight, it is usually only people who need to sell for age reasons. Most people are holding their properties. It’s very tight,” says Offermann, adding that “I do not believe the prices will go down 20 per cent.”
“Noosa is a market that is constantly in high demand and there’s an extreme reluctance by property owners to let property go. There is virtually no development potential for additional properties. It’s very much a population cap which underpins property values.”
Offermann is presently marketing a riverfront at 68 Noosa Pde with an asking price of $21m on behalf of Brisbane-based David and Judy Tynan, who have been in the finance and advisory industry.
The Tynans are selling the property, built in 2005 and fully renovated, because their children have grown and moved on.
The north-facing, seven-bedroom home was designed by architect Tim Ditchfield.
The home could be let out for about $620,000 a year after expenses as the Tynans have obtained a rare rental permit, which Offermann says is no longer available. They have also upgraded its airconditioning and security systems, with the house being sold fully furnished.
Offermann expects the buyer will be either from interstate and use it as a holiday home or will rent it out.
Offermann has also sold 22 Noosa Pde for $16.5m to Leigh Seymour, daughter of Queensland developer Kevin Seymour. Ms Seymour plans to demolish the house on around 610sq m and build a holiday house. Her father purchased 7 Noosa Pde for $15.5m just over a year ago.
Brisbane retirees Laurie and Gail Smith paid $16.2m for 32 Noosa Pde in April, also through Offermann. The house was knocked down the day after settlement and the couple have amalgamated the 611sq m block with their adjoining block. That house is being renovated.
Richardson & Wrench Noosa agent Frank Milat says Noosa’s top-end market is moving quite well with quality properties selling quite easily to cashed-up locals and mainly Sydney investors.
“We sold a couple of beachfront one-bedroom apartments for over $5m each in Hastings St recently and we sold a two-bedroom apartment on the beachfront for $9m six months ago,” Milat says. “The lower end of the market is still nervous but the top end are not perturbed and are still travelling well,” he said.
Richardson & Wrench Noosa principal Shane McCauley said Noosa was powering along. “Stock is very low and we are breaking records with every sale for apartments and houses,” he said
McCauley said anything close to Noosa’s Hastings St was usually purchased by interstate investors.
“The holiday rental market is jam-packed full. Currently Niche is fully booked for Christmas,” he said.
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