Market Moves with Kirstie Klein Hunter
While prestige properties continue to hold their own in the Noosa market, external factors are adding unexpected pressure as Jennifer Swaine discovers when she chats to Kirstie Klein Hunter about the Noosa market and where she thinks we are heading over the next few months.
As a highly sought after area, Noosa property prices, while impacted by outside influences, can often be buffered by the fact that there is a finite amount of stock in the region.
Noosa Buyers Agent, Kirstie Klein Hunter said that this was both a blessing and a curse for the region.
“Noosa is pretty much fully developed, with very few pockets of undeveloped land available so this means that to get into the market you need to purchase an existing property and renovate or bide your time until the right property comes along,” Kirstie said. “However, the more specific your requirements, the narrower the options become.”
Having been a buyer’s agent for over five years, Ms Klein Hunter said the following factors were currently impacting the market.
INTEREST RATES
While interest rate rises do not impact the majority of Kirstie’s clients who are mainly from overseas and interstate, she said that the successive interest rate rises were really starting to bite, particularly if people had overextended themselves to buy the property of their dreams.
“Rising interest rates are definitely impacting the area of the market we refer to as the ‘mortgage belt’, where the majority of homeowners in a specific area are mortgaged,” she said.
However, Kirstie said it was important to remember that many people who own property in Noosa, own that property outright, often as an inter-generational asset.
“Noosa has a lot of property that has been tightly held for many years and as such these property owners may no longer have a mortgage on it so as a consequence the rise in interest rates is actually beneficial to them, especially if they are self-funded retirees who are now also benefiting from greater returns.”.
Land Tax
While the dramatic rise in property values has seen many property holders delighted at the increase in value, the joy is not shared by property owners who have untenanted properties in the area.
The Valuer General has recently completed a revaluation of properties in the Noosa Shire. The revaluation included 22,203 properties, with an estimated total value of approximately $21,283,394,000, which was an overall increase of 62 per cent since the last valuation.
“In exclusive enclaves such as Little Cove some properties owners saw revaluations of up to 150 per cent on the previous year, while at Noosa Hill it was around 100 per cent.
“Some people I have spoken to have gone from paying around $20,000 a year to now paying upwards of $80,000.
“If the property is leased then some of that can be claimed or offset but if the property is sitting there and is only used by visiting family and friends, it is a lot of money to have to suddenly find.
“The impact for retired landowners who might be asset rich but cash poor, is significant as they now have to find a way to fund this increase which makes it hard to keep a property in the family for future generations.”
NEW STOCK IS SEXY
Kirstie said new build stock was selling well – when you can find it.
While some Noosa properties are sitting on the market a little longer at the moment Kirstie noted that people are still keen to snap up new stock as soon as it hits the market.
“Newly developed or renovated stock is moving quite quickly at the moment,” Kirstie said.
“The shine on doing your own renovations or build has worn off due to the difficulty securing trades and materials and people are keen to purchase property where there is nothing to do. Consequently, they are also attracting strong prices.”
Kirstie said that overall the demand for high end, good quality properties is still strong and there is no shortage of buyers should the right property become available.
“Without a doubt there is a shortage of stock at the moment and when it does become available buyers also need to be realistic.
“In some cases, I am seeing buyers’ low ball with their pricing. They need to keep in mind that most stock that becomes available will have a reputable agent representing it, and they have already had the property owner adjust their expectations regarding that property, so going in with a silly price and hoping for a miracle will only serve to offend everyone involved and you still won’t get the property!”
With limited property options available, and buyers keener than ever to secure their piece of paradise, it is little wonder that Noosa remains a firm favourite for both investors and homeowners alike and this is not likely to change anytime soon.
