The Noosa and Sunshine Coast property markets are currently finding equilibrium, with the luxury sector maintaining strong momentum. In the first half of 2024, there was a significant surge in demand and prices for high-end properties. This surge has been primarily driven by high-income households and high-net-worth families, who are less affected by the rising cost of living pressures.

“Luxury properties remain the focal point
of the market’s robust performance.” – Adrian Reed

Throughout the first half of this year, buyers have shown a preference for waiting rather than compromising on their property choices. This has resulted in a stand-off for houses with perceived compromises. At the same time, sellers with high-quality homes have been reluctant to test the market, balancing their motivations to sell with the uncertainty of achieving a strong result. These combined effects have limited the supply of quality properties and continue to result in low levels of stock on the market. The fear of missing out has greatly diminished, giving both buyers and sellers the luxury of time for their decisions. Patience has become a valuable trait in the property market, with both parties strategically assessing their options, leading to more balanced market conditions.

Despite the downturn of early 2023, which was one of the sharpest and shortest in property market history, the market has shown remarkable resilience. It has steadily recovered, with the positive trajectory bolstered by the strong performance of the prestige market.

Queensland recorded a population growth rate of 2.6% in the 12 months to 30 June 2023, above the national average (2.4%) and third highest among all states and territories – behind Western Australia’s 3.1% increase and Victoria’s 2.7% increase over the same period, according to the latest ABS data. What sets Queensland apart from the rest, though, is that while the volume of net overseas migration dominates figures (as it does elsewhere in other states), Queensland’s volume of net interstate migration is significantly higher and made the largest contribution to population growth in Queensland in the 12 months to June 2023. And there is more forecasted population growth on the horizon.

Federal government forecasts suggest that Queensland’s population is expected to grow by more than 16% by the time Brisbane hosts the Olympic Games in 2032. Noosa is positioned well to see sustained growth as one of the States most desirable property markets.

Throughout the first half of the year, there has been a discernible increase in local transactions and buyers from Brisbane as buyers engaged in moves to upsize, downsize, or explore different suburbs for a change of lifestyle. While this recent surge in local activity may seem intense, it aligns more with the typical pattern rather than indicating a completely new trend.

It’s possible that the widening gap in Noosa’s higher property values post-COVID vs. 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 normalize over time as international migration drives capital city median house prices beyond the levels in regional areas.

There are some real surprises in the Core Logic Median house price data for the 12 months ending June 2024. Noosa has retained 56.6% of the growth from the March 2020 onset of the COVID. Also interesting, there has only been a -6.7 decline from April 2022, the onset of the tightening of the fiscal policy and the rise of interest rates. Overall, it is a resilient market in the face of generally tough economic conditions and 5 consecutive quarters of GDP per capita decline.

The counter-intuitive results lie deeper in the detail with the most expensive suburbs in Noosa, like Sunshine Beach, with a whopping median house price of $2.13m, only up 38.0% growth from the March 2020 onset of the COVID. Also interesting, the highest decline since the onset of interest rate rises is a -13.1% decline from April 2022. Noosa Heads, a median of $2.034m, is up 50.1% since COVID and down 12.6% from fiscal tightening, whereas the more affordable suburbs, where you might expect some mortgage pressure and potentially higher rates of unemployment, have retained 57% growth from COVID and only 0.6% decline from the fiscal tightening.

“Buyers and sellers with specific needs have navigated transactions smoothly,
achieving their property goals” – Adrian Reed

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.