June 2015 Market Report
It is rather different looking back on real estate sales over the past month compared with the entire year. On a month to month basis here in Noosa we get some remarkably high upswings during the holidays when many interstate investors make their purchasing decisions. Of course when winter comes, it slows a little. This year we have seen the highest April, May and June figures for years – it just didn’t slow down much at all. In the past year, we transacted 25% more properties than the previous year. Noosa has certainly been seen as a popular market to invest in. The reasons are varied – without doubt the first reason is Lifestyle. People love living here and our holiday makers return again and again. Beach, national park, restaurants – it is a glorious part of the world. Of course across Australia property sentiment has risen sharply (particularly so in the last quarter) amid a favourable backdrop of record low interest rates and upbeat conditions for real estate. As well, with the RBA’s May interest rate cut, other asset classes are not nearly as attractive as the old ‘bricks and mortar’.
‘Stock’ is now getting short. It is easier for people to afford a mortgage repayment at these low rates and so owners are staying put, paying debt down and increasing their equity. Owners have seen an increase in the value of their own property from the GFC years. Thank goodness that GFC is over! Our prices have risen but still remain affordable, in fact many remain cheaper than back in 2008. We are watching the chasm shrink though as time marches on.
Owners sell for a myriad of reasons – the circle of family life is often what happens and people start with a small property, larger when families come along, perhaps a hinterland property and horse for the early teenage years and returning back to town when it’s too far to after school sport training most days. And then back to modest when travelling the world and children are off leading their own lives. And people change investments too, see other smaller or larger opportunities. So – there are offerings of course. They are just becoming fewer right now.
Buyers in the past year have snapped up some fabulous properties, knowing they may not be available again for many years. It is probably sound advice for buyers in the market right now.
Some recent sales include apartment 5 in ‘La Mer’ on the Hastings Street beachfront for $3.9mill, a very pleasant Noosa Heads home at 1 Banksia Avenue for $1.85mill, a Sunshine home at 25 Ross Crescent at $2.467mill and a 2 bedroom apartment in Little Cove for $1.85mill. Of course there are many others – this is a sample of what’s selling for investment apartments and lifestyle homes.
We hope the financial year treated you well.
Peter Butt, Jennifer Carr and Shane McCauley