Hastings Street Real Estate - 2005 Report

ABOUT THE AREA

One of Australia's most favoured holiday destinations and the focal point of Noosa Heads. Hastings Street is approximately 600m in length lined with boutique shopping, relaxed first class restaurants and holiday apartment complexes. Leafy sub-tropical trees soften and shade this beautiful boulevard.There are twelve beachside resort complexes, consisting of approximately 540 holiday apartments including the Sheraton Noosa Resort and 65 assorted shops and restaurants. On the most prestigious beachfront side overlooking spectacular Laguna Bay there are almost 280 apartments in 12 resort complexes and about 64 retail services all catering to a variety of holiday makers from the young, the elderly, the day to day mums and dads to the many celebrities, movie and sports stars enjoying the ultimate holiday atmosphere.This pristine sandy beach continues along Noosa Spit to the picturesque Noosa River mouth aligned with parkland, sheltered bathing beaches and heavy vegetation with abundant wildlife. Boardwalks continue along the total length of this protected north-facing cove and meander right to the National Park. Some 2.5 million tourists a year enjoy this special ambience taking pleasure in "the quiet life", dining, walking, bathing, surfing and generally spoiling themselves.There is currently around $800million worth of real estate along this prestigious strip. All complexes are strata-titled and owned by individuals with the exception of Sheraton Noosa and Seahaven Resort. Capital growth has been phenomenal, with values generally doubling every five to six years consistently over the last 25 year period. However, in comparison to other elite world destinations the prices still seem very modest.Hastings Street investments offer good returns (created by high occupancy rates), considerable tax advantages and exceptional capital growth not to mention the sublime pleasure of personal use.

MARKET REPORT

As elsewhere, an indication of our market slow down is evident in the number of sales in Hastings St reet this calendar year in comparison with 2003. However, anecdotally, Hastings St reet is showing a recovery. For a few years now, it has been out of favour with investors as they have concentrated on housing and lifestyle investments.

Total Settled Sales in 2003  $78m volume, 86 sales and a median price of $630,000

Total Settled Sales in 2004  $60m volume, 64 sales and a median price of $657,500

So far this year we have seen approx. 24 sales taken place excluding Bay Village .

The strata titling and selling off of  Bay Village  retail shops has been vibrant with all but 3 shops sold at the time of this report with a return rate of approx. 3.8%-4.5% in alignment with strong long term leases in place. This again shows the strength and now again the very limited supply of freehold commercial in the sector.

As stated in the last report, the Viridian development has most likely had an impact on Hastings St reet sales, making a difference between this year and last year's Hastings St reet settlements. At time of writing over 57% of the Viridian Resort is sold, while all 23 Villas and 8 houses are sold with some resales already taking place with No. 6 being contracted for $3.75m.

We are seeing several Hastings St reet apartments come on the market.

Currently there are apartments available in:

Beachfront

Non-Beachfront

Viridian should no longer pose competition for the Hastings St reet beachfront market as its upmarket stock is sold out, however the Viridian Resort apartments will still be an option for those investors looking for non beachfront stock.

The healthy choice of well priced apartments currently available will see the Hastings street market move confidently through 2005. Hastings St reet has an apartment for investors of all shapes and sizes and they can be confident when making the decision to buy.

Report updated April 1st 2005

For details please contact Rod Baker on 0418708545 or rodbaker@remaxnoosa.com.au