Noosa real estate ends financial year on high
THE region's property market is finishing the financial year on a huge high despite the disruption of bushfires and the COVID-19 global pandemic, according to Noosa real estate agent Tom Offermann.
He said that with overseas trips to places like Europe "out of the question", it generated a surge of inquiry and buying activity for Noosa holiday homes to fulfil recreational needs into the foreseeable future.
"A lot of our clients have lived through financial upheaval and health crises before," Mr Offermann said.
"They know that one day, this pandemic too will be over, and are taking a forward view that buying quality real estate is an investment that can't be beaten.
"Keen buyers quickly adapted to restrictions to view properties, with many buying without physically inspecting," he said.
"Our highest sale without a viewing was for a beachfront home, selling for more than $6m to an Australian living overseas."
In January and February, his company Tom Offermann Real Estate sold a combined $100m worth of real estate with some big-ticket sales.
- The $14m sale of an absolute beachfront apartment on Noosa Main Beach, smashed multiple records for houses and apartments.
- The record for apartment 8/Noosa Court in Hastings Street, surpassed all apartment sales including the sales of 6/Noosa Court for $9m, 5/La Mer $6.1m, and 1/Twenty-Three Hastings Street $8.25m.
- A Noosa Sound house on Witta Circle for $10m, two adjoining homes on Mossman Court and set for demolition, were acquired for $12.5m, plus there were a host of sales in the $5m to $7m range.
- A house listed for $11.5m on Noosa Parade was sold at an undisclosed price.
There were similar statistics in neighbouring Sunshine Beach, where the Offermann team achieved top sales of $14m, $15.2m and $18m.
A double beachfront allotment on Arakoon Crescent is attracting strong interest despite the $20m price tag, and two additional beachfront residences on Seaview Terrace are under contract. Prices are undisclosed.
Tom Offermann Real Estate recorded end of financial year total sales of $340m, which Mr Offermann said was close to three times more sales compared to next best in Noosa of $120m.
"It retains its top position for the 2020 year running with 85% of the highest sales, an auction clearance rate of 93% and remains the top selling Sunshine Coast agency," he said.
"There have been multiple sales during the COVID lockdowns in the range of $5m to $10m, reinforcing the strong desire for investors to lock in their future holiday options. In many cases it has also sparked decisions to move here with potential buyers ready to visit as soon as the borders reopen.
"Interestingly in-house analysis of 600 sales in 2019 showed 71% of buyers came from Queensland and majority of others from New South Wales and Victoria. Overseas buyers accounted for less than 5%," Mr Offermann said.
"Currently the number of available properties is vastly reduced as most owners are waiting to see what happens with the banks and their moratorium on loan repayments, also what happens when government support finishes.
"What we do know is many property owners are considering selling in the 3rd quarter of 2020, expecting to take advantage of the rush of southerners to Noosa, particularly while the number of competing properties is low," he said.
Mr Offermann said the second half of 2020 "holds a lot of economic uncertainty for Australia and while this may affect the Noosa market short-term, in the long-term any investment here is certain to be a good one".
Underpinning this is the region's number one ranking for the highest capital growth in Queensland for the past 41 years, maintaining more than 9% average growth per annum.
He said some of the hottest capital gains have been on Noosa Sound where land values in some streets have appreciated by 15.5% average compound per annum for the past 45 years, from $12,000 to $8m.