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Noosa's property market is alive and well
Noosa Journal | 22 May 2007
By Nathan Evans
LOCAL real estate agents have played down fears of a major Noosa property price plummet in the wake of the sub-prime mortgage crisis and consecutive interest rate hikes.
Tom Offermann, principal of Tom Offermann Real Estate, said there was still plenty of activity on the higher end of the market, while Noosa's popularity interstate, coupled with a limited supply of homes and land, insulated the region from a major crash.
"Noosa is renowned around the world and has massive appeal," he said. "We are in daily contact with large numbers of people who are planning to move here, so it is not difficult to predict what is going to happen to real estate prices in the future," he said.
Mr Offermann said the established Noosa Waters canal estate was seeing several construction projects while a new trend for demolition and rebuilding was also occurring, demonstrating a "major commitment to Noosa's future by property owners".
"Two 10-year old waterfront homes in Masthead Quay have just been demolished to make way for a home to be built across both lots, making it the eighth multiple lot home in Noosa Waters.
"There are 20 major renovations in Sunshine Beach too, and some homes currently being built have construction budgets around $8 million each."
Mr Offermann said prices would again climb, with current conditions caused by sub-prime mortgage fallout and share market falls presenting buyers with an "historic" opportunity.
"The market facts are telling us that right now there is a truly unique window of opportunity for well-informed buyers of residential real estate," he said. "As we look back, there have been previous windows of opportunity for buying real estate. How many times have we heard those familiar words. I sure wish I had bought back then?
"The problem for many buyers is that these windows of opportunity are easy to see historically but are easily missed as they occur. Buyers currently sitting on the sidelines might be wise to contemplate the age old adage that you make your profit when you buy and not when you sell."
Noosa Realty Service principal Richard Locke agreed a limited supply of property in Noosa was buffering the region from major price crashes that were occurring in other parts of the country. but now was still ideal for buyers.
"There is a lot of doom and gloom being spread, but there is not an oversupply of real estate in this area and prices are always driven by supply and demand," he said. "The demand, by way of inquiries. is there.
"Noosa is a micro market so you can't talk about it in the same breath as Sydney . There's only a certain amount of property here." Raine & Horne Noosa Hinterland principal Foti Koutsellis said the hinterland market was far from all "doom and gloom" with realistically priced homes continuing to sell.
Properties at the lower end of the price spectrum were selling quicker, with younger or first home buyers and over-55 tree changers accounting for most purchases.
"In Noosa we're insulated more than other areas that I've noticed but you do need to be on the market with a reasonable sale price to get the inspections," Mr Koutsellis said.
He said much of the media attention had been on city areas where price had dropped dramatically, but the Noosa area had always enjoyed a degree of protection from economic conditions.
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