Buyers Watch, Sellers Wait with Kirstie Klein-Hunter
Jennifer Swaine caught up with respected Noosa Buyers Agent Kirstie Klein-Hunter to get the latest on how the property market has fared this quarter – and what’s ahead for the rest of the year.
When it comes to property in Noosa, the appetite never truly wanes.
But, as Kirstie Klein-Hunter explains, even a market as robust as this isn’t immune to outside influences – from federal elections to financial policy, stormy skies, and shifting investor sentiment.
Pre-election pause, post-election patience
It’s a well-known trend that the property market slows in the lead-up to an election, and this year proved no different.
“Buyers tend to hold off to see whether an incoming or returning government will bring policy changes that might impact investment property holdings,” Kirstie said.
“Some of our clients still transacted during that quieter period, based on sound advice and long-term strategy. But overall, the market took a breath.”
Post-election, the expected surge hasn’t arrived – yet.
However, that has likely changed with the Reserve Bank’s interest rate decision handed down on 20 May. The Bank recently cut the cash rate by 25 basis points to 3.85%, with further cuts expected in the coming months. While this typically prompts a lift in property prices, we’re unlikely to see the sharp increases that defined parts of 2024.
“People often forget that interest rates are lowered in response to a slowing economy,” Kirstie said.
“So, while these cuts will bring welcome relief to everyday Australians, especially mortgage holders, they’re also a sign of broader economic softening.”
Still, with borrowing costs easing, confidence is expected to return. “We’ll likely see more buyers and investors re-enter the market, particularly as we head into spring and summer, which are traditionally stronger selling seasons,” she added.
“The fundamentals are still solid, and with improved affordability, the market should start to pick up again.”
Grey skies and softer sentiment
It’s not just political or economic factors shaping the mood – so too has the weather.
“The wet, gloomy conditions since October have had a real impact,” Kirstie said. “It’s affected holiday bookings, dampened short-term investor confidence, and left winter school holiday forecasts looking lean.
“Our holiday property business, Allawah Noosa, manages many of the high-end homes we purchase for clients and we’re currently seeing a slight change in consumer behaviour.
“Tourists are still coming but staying slightly shorter lengths of time and even opting to dine in instead of eating out.
“With cost-of-living pressures still relatively high, there is a definite trend where holiday makers are choosing to venture overseas instead of staying in Australia but with all things we expect that will change in time as well.”
Victorians selling up, looking north
Kirstie has seen a continuing trend of Victorian investors abandoning their home state in favour of Queensland’s sun-soaked shores with Noosa a highly sought-after choice.
“Increased land taxes and tighter rental rules in Victoria are prompting many to sell entire portfolios,” she said.
“They are reinvesting in markets like Noosa where the returns are stronger and short-term letting is permitted within the Noosa Council Local Laws.”
Many of these buyers are focused on properties already approved for holiday letting and that is where local expertise is critical.
“There’s a lot of things buyers need to know, like how renovations, even those done years ago, must be certified correctly if you want to apply for, or renew, a short-term letting permit,” Kirstie said.
“Some of our buyers have encountered this issue firsthand.
“It’s something that may not be picked up during conveyancing and can cause major delays or complications post-settlement.”
Stock levels remain tight
While buyer demand is holding steady, sellers appear to be waiting for spring.
“People are hoping the second half of the year will bring more optimism, but that also means more competition,” Kirstie said.
“For those considering selling, now may actually be the smarter time to list.
“You’re more likely to stand out when there’s less on the market.”
Like a rare gem, Noosa is a tightly held, highly sought after location and remains a beacon for investors and lifestyle buyers alike.
And with a seasoned local expert like Kirstie helping buyers navigate the hidden complexities of this unique market, it’s easy to see why confidence in the region remains strong.
