Noosa Consistent as Stock Builds for Spring

 Noosa Consistent as Stock Builds for Spring

Sales across Noosa have remained consistent this month. We've seen some price adjustments at the top end of the market, but not below realistic pricing levels that, in many cases, should have been considered from the outset.

Below the $6 million mark, the market remains quite strong when properties are priced correctly, with healthy buyer activity and solid transaction volume.

We launched three auction campaigns this month, with first open homes attracting 12, 6 and 5 buyer groups respectively. We also auctioned a property in Wyona Drive, Noosa Heads, where five registered bidders competed, resulting in a sale under the hammer for $1,655,000. It was a 50-year-old renovator's dream in a great location, demonstrating that well-positioned properties continue to attract strong competition.

Above $6 million, buyer numbers are understandably thinner, but there are some genuine value opportunities emerging, particularly when you consider today's building and replacement costs.

We expect the market to continue tracking along in much the same way for some time until buyers find a stronger reason to be more confident. Those purchasing with a five-year or longer outlook should be acting now. History tells us they'll likely benefit from the next upswing while buying into the market at more favourable levels today.

As I seem to mention every month, it's the combination of ongoing northern migration and limited supply that continues to underpin the Noosa market. That's been the story for years, and it's difficult to see that changing anytime soon.

After three years of capital city markets moving almost exclusively upward, combined house and unit prices across the country eased this quarter. Sydney, Melbourne and Canberra are doing most of the heavy lifting on the way down. Elsewhere, including Brisbane, it's more a case of deceleration than decline. Growth is still occurring—it has simply stopped sprinting.

Three interest rate rises since January have had an impact. Add tighter household budgets and a couple of unsettling tax changes, and buyers have shifted from "I have to have it" to "I'll think about it." Listings are increasing, campaigns are taking longer, and there's more room at the negotiating table than we've seen for years. After five years of a galloping market, we've collectively forgotten what it feels like to transact at a more normal pace.

If you're considering selling, it's worth recognising that these conditions are likely to remain for some time. The question sellers should ask themselves is: do I want to wait another two or three years for a different market, and if I sell now, can I also buy well on my next purchase? Is it really worth putting life on hold for 24 to 36 months? One thing none of us gets back is time.

Rather than focusing solely on the selling price, consider your overall changeover cost. Selling for slightly less can reduce both your commission and any applicable capital gains tax, while buying for less can also reduce your stamp duty. Often, it's the net cost of changing properties that matters far more than the headline sale price.

Do your homework, seek good advice, and see whether you can keep your overall changeover cost much the same—or perhaps even improve it. In the right market, the opportunity often lies not in waiting for a higher sale price, but in buying your next property well.

Anti-Money Laundering Laws in Effect

Under new legislation, all agents now have to check vendors within 14 days of signing a selling authority and buyers within 14 days of signing a purchase contract. For mums and dads, it's a simple questionnaire to establish the source of funds.

It becomes more complex when dealing with companies with directors or trusts and superannuation funds, with companies, directors, trustees, and beneficiaries that all need to be searched. Most agents are engaging search companies when it gets this complicated, which does incur a fee depending on how complex the entity is. The information is kept secure.

Lawyers and finance companies also must conduct these searches. Some lawyers have set up a system of reliance so that these searches only need to be conducted once. Buyers and sellers shouldn't be surprised when this requirement surfaces—it's now just part of the buying and selling process.

Rental Market

The rental market has experienced an increase in the last 8 weeks, which is unusual for winter. This comes behind budget announcements regarding increases in taxes and recent council rates increases, all impacting the market.

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Dan Neylan, 

Director