Queensland and Sunshine Coast property, Sept 2004

SUNSHINE COAST PROPERTY, originally published in the Sun Herald Sept 2004

It ain’t called the Sunshine Coast for nothing. The sun just keeps on shining, especially on property prices in exclusive Noosa.
With a so-called “population cap” initiated by the local council to maintain the village atmosphere of the seaside resort town, property prices in and around Noosa defy the rest of the market and grow rapidly.
The median house price in Noosa to March 2004 was $650,000 with 38 per cent of those sales were more than $2 million, according to PRDnationwide.
“The name Noosa is actually bigger than the town – it’s by reputation and mystique that people want to come here and buy something but there are limited opportunities” says Richardson & Wrench Noosa principal Peter Butt.
“Everyone wants something close to Hastings St and with water views, but there just aren’t enough properties for sale.”
Butt says a three-bedroom apartment sold for $5.65 million earlier this year, and if another became available, it would easily fetch a similar price.
“Noosa is actually unlike anything else in Australia – it is really more like Positano, Carmel or Portofino,” he says, comparing it to international resort towns that command massive property prices.
“It is not really a part of the Sunshine Coast property market because people want Noosa or they want nothing – they just won’t compromise by going elsewhere on the coast.”
But surely if property is so hard to come by in Noosa, people are buying in nearby beachside towns?
Well, yes and no. Sunshine and Sunrise beaches, which are within walking distance of Noosa have already boomed and Sunshine Beach actually has a higher median house price than Noosa of $805,900 to March 2004.
“That’s a recent phenomenon that places like Sunshine Beach have become so expensive, and that’s happened because people just can’t get into Noosa,” explains Paul Broad, analyst with Matusik Property Insights.
“We think Noosa has priced itself out of the market and that means other parts of the Sunshine Coast will go ahead – but not in the same way or for the same reasons Noosa has gone ahead.”
Broad says locations like Coolum and Peregian, which are around 20-minutes drive south of Noosa, are already being marketed as alternatives to Noosa.
Boman says prices in those beachside areas are considerably cheaper than Noosa – but they are not affordable.
“First home buyers would not be able to buy in those areas, although there is Peregian Springs which has blocks of land available for around $300,000,” he says.
He also suggests some of the canal developments around Minyama and Mooloolaba may also appeal to Noosa buyers.
“But the point is that those beaches are not Noosa – they don’t have Hastings St and they don’t have the village atmosphere.”
Boman says Twin Waters, which is north of Maroochydore, has a similar feel to Noosa with high quality architect-designed homes on the water.
“That’s the only other place near Maroochy that I can think would be seen as a possible alternative to Noosa,” he says.
“Don’t forget that Noosa market is a bit like the Byron Bay market – people won’t go to Brunswick Heads which is the next beach along and half the price because it is not Byron Bay.”
Butt agrees, saying: “It might sound incredibly snobby but the demographics of the Noosa market are Double Bay and Toorak and South Yarra and they simply won’t go to other parts of the Sunshine Coast because the sophistication is not there”.
Broad says the southern end of the Sunshine Coast is still performing well, but not as well as Noosa.
“We think the outlook is good for the entire Sunshine Coast simply because of population growth,” he says.
“I think Noosa prices may end up plateauing, but it will remain steady because once people have a piece of Noosa they will want to hang on to it.”

Sunshine Coast median house prices to March 2004

Noosa Heads $650,000
Sunshine Beach $805,9000
Castaways Beach $693,500
Minyama (waterfront homes only) $1.3 million
Castaways Beach $693,500
Mooloolaba $460,000
Caloundra $374,000

* PRdnationwide statistics


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SUNSHINE COAST PROPERTY, originally published in the Sun Herald Sept 2004 It ain’t called the Sunshine Coast for nothing. The sun just keeps on shining, especially on property prices in exclusive Noosa. With a so-called “population cap” initiated by the local council to maintain the village atmosphere of the seaside resort town, property prices in and around Noosa defy the rest of the market and grow rapidly. The median house price in Noosa to March 2004 was $650,000 with 38 per cent of those sales were more than $2 million, according to PRDnationwide. “The name Noosa is actually bigger than the town – it’s by reputation and mystique that people want to come here and buy something but there are limited opportunities” says Richardson & Wrench Noosa principal Peter Butt. “Everyone wants something close to Hastings St and with water views, but there just aren’t enough properties for sale.” Butt says a three-bedroom apartment sold for $5.65 million earlier this year, and if another became available, it would easily fetch a similar price. “Noosa is actually unlike anything else in Australia – it is really more like Positano, Carmel or Portofino,” he says, comparing it to international resort towns that command massive property prices. “It is not really a part of the Sunshine Coast property market because people want Noosa or they want nothing – they just won’t compromise by going elsewhere on the coast.” But surely if property is so hard to come by in Noosa, people are buying in nearby beachside towns? Well, yes and no. Sunshine and Sunrise beaches, which are within walking distance of Noosa have already boomed and Sunshine Beach actually has a higher median house price than Noosa of $805,900 to March 2004. “That’s a recent phenomenon that places like Sunshine Beach have become so expensive, and that’s happened because people just can’t get into Noosa,” explains Paul Broad, analyst with Matusik Property Insights. “We think Noosa has priced itself out of the market and that means other parts of the Sunshine Coast will go ahead – but not in the same way or for the same reasons Noosa has gone ahead.” Broad says locations like Coolum and Peregian, which are around 20-minutes drive south of Noosa, are already being marketed as alternatives to Noosa. Boman says prices in those beachside areas are considerably cheaper than Noosa – but they are not affordable. “First home buyers would not be able to buy in those areas, although there is Peregian Springs which has blocks of land available for around $300,000,” he says. He also suggests some of the canal developments around Minyama and Mooloolaba may also appeal to Noosa buyers. “But the point is that those beaches are not Noosa – they don’t have Hastings St and they don’t have the village atmosphere.” Boman says Twin Waters, which is north of Maroochydore, has a similar feel to Noosa with high quality architect-designed homes on the water. “That’s the only other place near Maroochy that I can think would be seen as a possible alternative to Noosa,” he says. “Don’t forget that Noosa market is a bit like the Byron Bay market – people won’t go to Brunswick Heads which is the next beach along and half the price because it is not Byron Bay.” Butt agrees, saying: “It might sound incredibly snobby but the demographics of the Noosa market are Double Bay and Toorak and South Yarra and they simply won’t go to other parts of the Sunshine Coast because the sophistication is not there”. Broad says the southern end of the Sunshine Coast is still performing well, but not as well as Noosa. “We think the outlook is good for the entire Sunshine Coast simply because of population growth,” he says. “I think Noosa prices may end up plateauing, but it will remain steady because once people have a piece of Noosa they will want to hang on to it.” Sunshine Coast median house prices to March 2004 Noosa Heads $650,000 Sunshine Beach $805,9000 Castaways Beach $693,500 Minyama (waterfront homes only) $1.3 million Castaways Beach $693,500 Mooloolaba $460,000 Caloundra $374,000 * PRdnationwide statistics