Noosa Property Market Update, June 2024

The broader Australian context

Housing affordability is at its lowest in 30 years. Pandemic-era price growth combined with the rate-hiking cycle has reduced household borrowing power by 34 per cent. The cash rate has held at 4.35 per cent through five consecutive RBA decisions.

Affordable homes (the 25th percentile of stock) have appreciated 13 per cent since the rate-hiking cycle began in May 2022, faster than higher-priced homes. Demand for the more affordable segment is strong nationally and across every capital city. The average dwelling price in Australia has reached approximately $960,000.

Australia added 170,000 homes to its housing stock over the period, well short of the 250,000 annual target, hampered by rising material costs and a shortage of skilled labour.

Noosa: recovery to peak, with new highs in select pockets

After strong pandemic growth and a sharper post-rate-hike correction, parts of Noosa have now recovered to or exceeded the September 2022 peak. Tewantin and Noosaville are at or above peak medians. Tewantin’s outperformance is consistent with the national pattern: the more affordable end of the LGA is leading the recovery.

Noosa Heads, Sunrise Beach and Peregian Beach remain marginally below the September 2022 peaks, though the six-month trend is upward and tracking back towards those highs.

Sunshine Beach’s median sits at $2.4M. The data fluctuates here because of the spread of sale prices: transactions over the past 12 months have ranged up to $28M, which skews the median.

A significant volume of construction is underway, much of it in coveted high-end pockets. The architectural calibre suggests that as some of this stock reaches completion and lists, fresh price records are realistic in certain micro-locations. Most construction, however, is knock-down-rebuild, not new dwellings. Supply is not increasing.

A three-speed Noosa market

Entry level (up to $1.5M) is strong. Open-home traffic is high; well-priced stock is going under offer after first inspections, often with multiple offers.

Mid market ($1.5M to $5M) is the segment most exposed to borrowing capacity and interest-rate sensitivity. This is where the negotiation opportunities sit at present.

Prestige market is moving on its own gear, largely insulated from lending pressure. Recent results include a sale circa $30M on Noosa Sound.

Vendor sentiment and supply

Anecdotally, vendors remain hesitant to list. The recurring concern is “if I sell, where do I go?” That hesitancy is keeping listing volumes low. There is movement within the Noosa market, buyers downsizing or upsizing, but cautious vendors are increasingly transacting off-market until they have secured their next property.

Postcode 4567 snapshot (Noosa Heads, Sunshine Beach, Sunrise Beach, Castaways Beach)

• Listing volumes have lifted slightly from the September 2022 trough but remain low against historical levels.
• Days on market: approximately 64, up modestly over 12 months.
• Asking prices: houses up 7.8 per cent over the quarter; units up 3.3 per cent over 12 months.
• Gross yields: houses 4.5 per cent, units 5.9 per cent.

Notable recent results

Prestige

• 43 Witta Circle, Noosa Heads, circa $30M
• 9 Surfside Court, $4.59M (auction)
• 22 Seamount Quay, Noosaville, $4.55M
• 20 Tropicana Rise, Castaways Beach, strong off-market sale
• High side of Orient Drive, Sunrise Beach, $6.85M (off-market, pre-settlement)
• 65 Hilton Esplanade, Tewantin, $4.62M

Entry level

• 26 Sleepy Hollow Drive, Noosa Heads, $1.375M
• 4 Challenge Court, Sunshine Beach, $1.22M
• Marindahl Street, Tewantin, $810,000
• 10 Cassia Court, Noosaville, just over $1M
• 43 Aureola Crescent, Sunshine Beach, $1.3M

How a Noosa Buyers Agent helps

Noosa is a complex pricing market with significant variance across pockets. A skilled buyers agent saves time and reduces costly mistakes. Vendee handles the search across both on-market and off-market stock, applies a forensic due diligence process, and negotiates on the buyer’s side only.

If you would like to discuss your Noosa or Sunshine Coast acquisition, book a complimentary consultation with Amanda or contact Vendee Property Buyers.

Related Reading

• Noosa Buyers Agent: forensic acquisition
• Sunshine Coast buyers agent
• Buying Property in Noosa: The Definitive Buyers Guide
• Vendee success stories