Noosa Sound Real Estate

• View the report from April 2005

Noosa Sound is Noosa's most exclusive waterfront precinct located between Hastings Street and Noosaville and within easy walking distance to the main beach, the famous Noosa National Park and Noosa River Esplanade. Development began in 1971, based upon the natural islands and creeks. The first stage was released in approximately 1975 with prices between $17,000 and $30,000 and was completed in 1984 when prices where already achieving significant growth and up to $80,000. We now see properties achieving in excess of $2 million for the land component alone. Consisting of just 256 riverfront and waterfront blocks and 20 parks spread along some 7 kilometres of waterways, Noosa Sound is one of Australia's most attractive destinations to holiday or live in. Ideal for swimming, fishing, boating and entertaining, it also has an astonishing capital growth record. Over the past 25 years the growth rate has been between 14% and 18% per annum for residential property and between 10% and 15% per annum for unit investments. There are approximately 400 waterfront units that offer a sedate holiday retreat with excellent tax advantages and returns. Geographical limitations and town planning constraints have restricted any future supply, forcing prices skyward. Waterfront homes can be purchased between $1.6 million and up to $4 million and units between $350,000 and up to $3.5 million for one of just 10 waterfront penthouses. Noosa Parade is currently the highest rated residential street in Queensland, with Mossman Court and Witta Circle also rated in this state's most exclusive and expensive destinations.

NOOSA SOUND REAL ESTATE MARKET REPORT

Noosa Sound is Noosa's most exclusive waterfront precinct located between Hastings St reet and Noosaville and within easy walking distance to the main beach, the famous Noosa National Park and Noosa River Esplanade. Development began in 1971, based upon the natural islands and creeks. The first stage was released in approximately 1975 with prices between $17,000 and $30,000 and was completed in 1984 when prices where already achieving significant growth and up to $80,000. We now see properties achieving in excess of $ 4 million for the land component alone. Consisting of just 256 riverfront and waterfront blocks and 20 parks spread along some 7 kilometres of waterways, Noosa Sound is one of Australia 's most attractive destinations to holiday or live in. Ideal for swimming, fishing, boating and entertaining, it also has an astonishing capital growth record. Over the past 25 years the growth rate has been between 14% and 18% per annum for residential property and between 10% and 15% per annum for unit investments. There are approximately 400 waterfront units that offer a sedate holiday retreat with excellent tax advantages and returns. Geographical limitations and town planning constraints have restricted any future supply, forcing prices skyward. Waterfront homes can be purchased between $1. 8 million and up to $ 5 million and units between $ 40 0,000 and up to $ 4 .5 million for one of just 10 waterfront penthouses. Noosa Parade is currently the highest rated residential street in Queensland , with Mossman Court and Witta Circle also rated in this state's most exclusive and expensive destinations.

NOOSA SOUND HOUSES

There are very interesting charts for the Noosa Sound waterfront homes, which are considered as some of Noosa's premium real estate. It certainly lives up to expectations! Some of the reasons why this property segment performs in this manner seem to hinge on the location and its relationship geographically to Hastings Street. Whilst Hastings St. has more than a few units and apartments, Noosa Sound in real terms has the only homes within walking distance to Hastings St. and Main Beach of Laguna Bay. There is obviously a preference for those with the capital and/or assets to be a live-in home rather than an apartment. The demand for these homes is obvious when one can calculate a 398% gain in property values (using median prices) in the last 10 years. 1998 values increased by a whopping 77% with a relatively small number of transactions (only 17). It is also interesting, on looking at the percentage gain each year that a high level of growth seems to be followed by either a loss in median price or no growth. A degree of correction happens, with the market place adjusting to wild swings of the median price pendulum. Invariably, the market reacts in this manner. Firstly, a low number of properties for sale create a stock shortage and with all stock shortages the buyers act quickly, make decisions and secure property. As these properties sell it seems to prompt other owners to test the market by listing their properties (usually with a rise in expected selling prices).

This activity seems to continue and in fact gains momentum until such times as there are more properties for sale than actual buyers - a distinct move from the seller's market through a neutral market, then into a buyer's market. This can take varying amounts of times and can contribute to a varying amount of pendulum swing. Interestingly, sellers watch advertising as their main guide to the market, but invariably the prices the prospective sellers see and actual contracted sell prices can be substantially different. The seller's perception of their property worth and true worth is inflated. This inflation can actually have a negative effect on the market, i.e. increasing the market fluctuation and continuing the downward pressure on pricing. Needless to say, the advice of agents is to disregard the advertised prices and concentrate on real sales when pricing their property. These charts on the Noosa Sound are good examples of perceived value impacting on prices from one year to the next. Currently there are 21 properties on the market on the Noosa Sound. Five of these properties are garden allotments and the other 16 waterfront property. Prices on dry sites range from $1.25 million - $1.75 million with the price range of waterfront property commencing at $2.3 million all the way to $3.7 million. Sales: Only 1 recorded sale at 3 Laguna Drive  sale price $ 1.1 million, this being a dry property. There have been several other reported sales on the Noosa Sound waterfront but as yet to appear on the official records. This could be due to a long settlement arrangement between seller and buyer.

Updated October 2005

For details please contact Derek Cunningham on 0418 426 065 or at derek@remaxnoosa.com.au

NOOSA SOUND UNITS

Unit sales and the broader Noosa market took on a new lease of life since July 1st, after coming off the back of a much needed correction. Generally stock continues to remain quite tightly held in what is still perceived as a buyers market. This is a clear indication that those fortunate enough to own property in this location are true believers in what can only be described as one of the strongest markets in Australia. A snapshot of recent sales saw unit #64 in Noosa Pacific 2 in Munna Crescent change hands for $362,500 to a New Zealand buyer wanting to defrost here during the winter months and two sales were recorded at 9 Barbados Crescent in Driftwood one at $930,000 and another at $650,000. Also in Barbados Crescent a further two sales have occurred in San Marino. Lot 3, sold at $355,00 and Lot 5, sold at $420,000 which has recently been placed back on the market at $449,000. A unit in Noosa Shores on Noosa Parade which is a waterfront complex has changed hands at $975,000 with Unit 15 at Nautilus Noosa on Noosa Parade selling for $260,000. In Munna Crescent, lot 8 Bedarra sold for $280,000. Our agency recently sold 2 units in #59 Noosa Parade as apair for $770,000. The ever popular Culgoa in Quamby Place saw Unit 5 sell for $820,000 and in Noosa Harbour resort another sale was recorded at $365,000. On the market in Quamby Place at Culgoa Point a first floor waterfront property is available for $645,000. Pisces in Peza Court has a waterfront two bedroom apartment on the market at $1.195 mil and on Noosa Parade at Belmondos a totally renovated two bed unit at $597,000. On offer in Noosa Shores there are currently two properties now available. At Noosa Pacific in Munna Crescent a waterfront unit is to be auctioned. High occupancy rates and most importantly solid capital growth seen in this great location will continue to attract the astute investor so now more than ever is a great time buy.

Report updated December 2005

For more details contact:

• Lance Bussell on 0403 134 420 or lancebussell@remaxnoosa.com.au
• Colin Middleton on 0408 765 514 or colinmiddleton@remaxnoosa.com.au