Spring has arrived early in Noosa with day after exhaustive day of perfect, stunning weather with blue skies, gentle waves and hardly a breeze. It’s heaven on earth. It is also having a positive effect on the market. Interestingly, there are now more properties that have sold in the last few months than new properties coming on to the market to replace them. Properties that have languished on the market for 12 months or more have now been sold. The majority of properties that have dropped in price have been reduced in numbers, so there is less to choose from. This is surprising buyers that have been sitting on the fence and is, for the first time in years, limiting their options.
It is a fact in the real estate market that the best positions always get sold first and buyers who miss out on the properties they like by waiting for the prices to come down further will soon have to make compromises and move to their second choice.
As stock levels decrease prices trend upwards. To illustrate this R&W have just sold a “Fairshore” apartment on the Hastings Street beachfront for $2.2 mill after the two previous sales sold for only $2 mill. Buyers should be aware that prime positioned stock in Noosa can dry up very quickly once the market determines that the prices are right. While a price increase of 10% for a beachfront apartment in the same building may not be indicative of the general market, it does indicate that we may have past the bottom of the market. Another example is a house that sold on Noosa Sound for $4.3mill just a little over 12 months ago has now just sold for over $4.7mill. Another 10% increase. We have many of these examples at the low end, middle and high now.
Our company avoided the June – July rush to put auction properties to the market as we wanted to avoid low buyer participation in winter. This is traditionally what happens. One of the strengths of R&W is our management control over 260 holiday rental properties. This not only gives us strong cash flow it also gives us an accurate insight into when the main body of tourists and buyers come to town, where they come from, and how long they will be here. This enables us to accurately launch properties on to the market with the best chances of success.
Our holiday management business also removes the financial pressures that affect real estate companies that do not have cash flow through rent roll income. This allows us to operate with a balanced perspective of the market.
This spring we have assembled a great selection of Noosa properties to be auctioned on 5th October. All of these properties will be available to inspect and prior offers will be considered to accommodate buyers who may not wish to wait until the auction date to secure the property of their choice.
Frank Milat has a free and easy personality that my wife and I felt comfortable with. Frank stuck to the task and as promised achieved a satisfactory result.