The Sydney and Melbourne markets are well on the recovery path, in fact The Real Estate Institute of Australia have reported the greatest medium price rises in Capital Cities since records began, Melbourne leading the way with a 15 % increase over the last quarter . Further growth is forecast with the Reserve Bank Governor poising the market for further rate rises and stating “that the economy is now in a reasonably solid upswing” This June will also see the investment banking, stock broking and financial services industries back into bonus territory. Recent reports indicate that 4,000 people in Macquarie bank alone will receive over $1million in bonuses this year. This will be ploughed into mortgage reductions and property upgrades throughout Melbourne and Sydney. We are also seeing significant overseas investment in the city markets at the top end. Considering that Noosa is unequivocally the lifestyle back yard of Melbourne and Sydney, no doubt this cash injection into the market will ultimately flow into Noosa in the coming months.
A number of potential buyers have already been surprised to discover that the properties they were considering have already sold. The Noosa market can and does change in the blink of an eye when in transition from a down cycle to an up cycle especially at the top end where the supply of unique and sought after properties are always in short supply and virtually unable to be duplicated, particularly given the extremely unique nature of the entire Noosa lifestyle. If you are a potential buyer at this end of the market then our advice is “Don’t delay once you have identified the property you want”. We anticipate that this area of the market will show significant gains in the next 12 to 18 months. But as has been seen before, hesitation can be very costly.
The second tier of the Noosa market is primarily made up of the residential precincts. People that live, work and bring up their families in this wonderful part of the world. Throughout the growth period of the last 10 years we have seen a number of these property owner’s upgrade to a bigger and better position. This cycle stopped almost 2 years ago and some of these owners now find themselves under mortgage stress and are keen to sell, downgrading to a more comfortable position particularly as the RBA continues to indicate upward movement in interest rates.
There is a big difference between the investment lifestyle market and the residential lifestyle market, but we expect both of these markets to be on the move very soon, buyers will then lose their current advantage.
Our Easter auctions will feature committed sellers.
Peter and Jennifer