20 Dec 2018

What the? Noosa unit now more expensive than a Brisbane house

A TYPICAL apartment in Noosa is now more expensive than an average house on Brisbane’s outskirts, with the coastal juggernaut’s housing market blitzing the rest of the state.

New September quarter figures from the Real Estate Institute of Queensland reveal Noosa was the best performing region in Queensland with the annual median house price gaining 8.7 per cent to a new high of $715,000.

But that was outshone by the unit market, with the average apartment price jumping 12.2 per cent to $550,000.

Records were broken on both the Gold Coast and Sunshine Coast, with the median house prices for both regions hitting new highs of $580,000 and $629,000, respectively.

REIQ chief executive Antonia Mercorella said the September quarter had delivered “stunning” growth for the state’s coastal markets, particularly Noosa.

“Noosa is the juggernaut that won’t be stopped,” Ms Mercorella said.

“It’s our powerhouse market and its growth has been meteoric, to say the least.”

Ms Mercorella said a typical unit in Noosa was more expensive than many houses in Greater Brisbane, particularly in the regions of Ipswich, Logan, Moreton Bay and Redland.

“This is an area that is highly desirable and is attracting buyers from all over the world,” she said.

Tom Offermann of Tom Offermann Real Estate, who handles some of the biggest home transactions in Noosa, said he was confident 2019 would be a repeat of the past year’s growth as buyers continued to outnumber sellers.

“We have negotiated some record breaking sales this year at $14 million, $15.2 million and $18 million, and have more buyers right now with up to $20 million for the right property,” Mr Offermann said.

He said price growth in the region was underpinned by the lack of land available for development because of stringent council planning policies, and the fact around 80 per cent of Noosa was covered by protected green space and waterways.

“Buyer demand remains strong, and effectively for someone to move to Noosa, someone has to check out,” Mr Offermann said.

“New residents continue to be drawn from mostly eastern seaboard capital cities, and there is a growing proportion of overseas and expat buyers.

“This year we noticed a spike in activity by Sydney buyers, many citing their daily frustrations of battling with worsening traffic jams.”

Mr Offermann said the strength in the unit market was due to exceptionally high rental returns generated by holiday units.

Anthony and Sally-Ann Caligari and their two children moved to Noosa from the Victorian hamlet of Ocean Grove late last year.

“Like everyone else, we moved here for the lifestyle!” Mrs Caligari said.

“Why wouldn’t you want to live in Noosa?

“We’re so blessed.”

The small business owner said she was thankful, but not surprised the coastal region had recorded such strong house price growth.

“We wanted somewhere that was going to be thriving for our kids’ sake and for our own business prosperity,” Mrs Caligari said.

“We could see the real estate growth potential in Noosa.

“The uni’s just down the road and there’s a lot of infrastructure going in around here.”

House and unit price growth on the Gold Coast has been well supported by interstate migration and waterfront houses continue to record strong sales.

Clive Palmer’s purchase of a beachfront home at 9 Hedges Avenue in Mermaid Beach was a standout sale in September — fetching $12 million.

Across the rest of the state, the Mackay housing market continued its comeback, with the annual median sale price increasing 5.6 per cent to $340,000.

Rental demand is on the rise, putting downward pressure on vacancies and increasing median rents, making Mackay the tightest rental market in the state at 0.9 per cent.

“Mackay has become the comeback kid, bouncing back from a very gloomy position just 18 months ago,” Ms Mercorella said.

Originally published as Noosa market blitzes rest of state.

SOURCE; https://www.news.com.au/finance/real-estate/brisbane-qld/what-the-noosa-unit-now-more-expensive-than-a-brisbane-house/news-story/db1eeea7cd3c8657c2cef0fa773cada0

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