Noosa Property Market Update – 1st Quarter 2024
First quarter down: What we know about the Noosa Property Market in 2024 so far…
National media has been aligned in its messaging that the Australian property market is defying the odds, and that median house price is on the rise, that’s largely what we have seen in our local markets. The key driver for the growth in value has been a rush to quality. A-grade property in excellent locations with genuine scarcity, both renovated and new homes have driven up the median price. Buyers with more capacity, who are affected less by consumer confidence and the reliance on debt to buy have reigned supreme.
The prestige property market in Noosa witnessed steady value growth throughout 2023 and continued through to the first quarter of 2024. The demand for luxury properties remained high, driven by both domestic and international buyers seeking exclusive and high-end residences, but that was not the story across the total market with some segments suffering slowing volume and a longer time on market before securing a sale.
Throughout the first quarter of 2024, there was a discernible increase in local transactions as residents engaged in moves to upsize, downsize, or explore different suburbs for a change. While this recent surge in local activity may seem intense, it aligns more with the typical pattern rather than indicating a new trend.
“Noosa has always shown a value premium over Brisbane and the broader Sunshine Coast… but it’s rarer to see housing values higher relative to the Greater Sydney region.” – Tim Lawless – CoreLogic Executive, Research Director, Asia-Pacific.
As a result, sea-changers and tree-changers have been less of a dominate buying force. It’s possible that the widening gap in Noosa’s higher property values versus Sydney and Melbourne has slowed the migration of buyers from those respective markets. We suspect that this is a result of the post pandemic growth accelerating value well beyond the ‘natural’ level compared with these source markets. I expect that the price gap will normalise over time as international migration drives capital city median house prices beyond the levels in regional areas. It’s also fair to say that the prestige end of the market is running its own race and the demand for the ‘best’ that Noosa has to offer is not being satisfied so premiums are on offer for those sellers holding onto marque positions.
Following a phase characterized by short sharp auction campaigns in the post-COVID market, we have reverted to longer, more sustained marketing efforts.
“Successful campaigns now heavily rely on integrated marketing strategies with broader reach, an area that Reed & Co. has excelled in driven by world class marketing and digital media strategies.” – Adrian Reed, Director & Founder.
Sales volume has witnessed a significant decline, with only 5.7% of properties changing hands in the most recent quarter. This figure marks the lowest rate in over a decade, nearing levels observed during the Global Financial Crisis of 2008. The decrease can be attributed to various factors. Buyers are exercising caution due to limited options, preferring to await a broader selection. Meanwhile, sellers, apprehensive about current market conditions, are hesitant to list their properties.
However, despite this slowdown, buyers and sellers with specific needs have navigated transactions smoothly, achieving their property goals. Conversely, properties with aspirational pricing, inadequate preparation, or lacklustre marketing efforts faced challenges, contributing to the overall decline in sales volume across all suburbs in Noosa.
Noosa’s enviable climate, breathtaking natural scenery, and abundant lifestyle amenities will remain key attractions for affluent individuals, investors, and residents in search of an unparalleled lifestyle experience.
Our agents are area experts, offering years of experience and in-depth knowledge, so if you are thinking of buying or selling, why not take advantage of our specialised advice. Click on the suburb below for a more detailed micro-market report, prepared by our agents specially for you.
