Market Update with Kirstie Klein Hunter
With Spring just around the corner there are signs the market has started to correct itself as Jennifer Swaine discovers when she chats to Kirstie Klein Hunter about the Noosa property market and what we can expect as we head into the warmer months.
When it comes to property, the Noosa market is quite unique. This is mostly due to the fact that, without increasing the height of apartments, the available stock is pretty much maxed out. Simply put, there is a finite amount of stock in Noosa, and for this reason securing a property in the area often takes time.
According to experienced Noosa Buyers Agent, Kirstie Klein Hunter there are still plenty of buyers about but there are some noticeable trends emerging.
Tightly held areas are hard to crack
While Kirstie said some sellers were still hanging onto the expectation that they could ask the eye-watering prices we saw during the pandemic, realistic sellers were seeing their stock move more quickly.
“In Noosa we have some very tightly held areas where it is rare for a property to become available, so when it does all eyes are on it,” Kirstie said.
“If the right home comes up there will always be someone willing to pay the price just to get into the street. However, in areas where we see higher turnover of stock, some sellers are holding onto unrealistic price expectations that are a hangover from the pandemic.”
Rental market is changing
Kirstie said one of the most noticeable areas of the market to soften was the rental market and this was being impacted for a number of reasons.
“There is a real shift in the rental market with people refusing to pay unrealistic rents and being prepared to negotiate – and landlords are meeting them in the middle as they know its better to have a property tenanted than to leave it empty,” Kirstie said.
“The pendulum has swung slightly back to the renter as rental properties are also staying on the market longer and there are more properties available as a result of people moving away from Airbnb letting and putting the property back on the market as a long-term rental.”
Quality stock is hard to find
As surprising as this sounds Kirstie says at the moment there is a distinct lack quality stock in the $2-$3.5 million range.
“I have a number of buyers, who have between $2-4m to spend, but a lot of the stock available in that price range is not in the right location, the right size or will need renovating,” she said. “Many of my clients are interstate and do not have any interest in renovating or purchasing a property that is not in a location they desire.
“It is hard to find everything you want in the one property and while some buyers are prepared to compromise, others aren’t and will simply wait until the right property comes up.”
Kirstie said that older people who were downsizing were also challenged by the stock that is available.
“Many of my older clients are downsizing from a six-bedroom house and are opting for a three-bedroom apartment as the work is already done for them and they are more likely to be in a location that suits their lifestyle.”
Impacts of the draft South East Queensland Regional Plan
Released at the beginning of August this draft plan is proposing that Noosa accommodate an additional 19,100 people by 2046.
As noted previously, Noosa has a finite amount of stock so in order to do this, building heights will need to increase.
The plan is suggesting that in some areas of Noosa, building heights could be increased to between four and eight stories.
While some people may celebrate this news, Kirstie says that if this plan gets the green light there will be a significant impact on the liveability in Noosa.
“While I recognise that Noosa is increasingly harder for many of our much needed and highly valued hospitality and tourism staff to find accommodation, increasing the height levels and adding that many people to the area is going to cause problems,” she said. “More people means more traffic and congestion, in and around Noosa, is already an issue so there will need to be some serious work done on traffic planning. The impact on the liveability
of the region will be significant..
“The streetscape and visual appeal of Noosa is as a result of the lack of high rise buildings. Greater heights will throw more shadows and will take away from the special feel that people love about Noosa.
“Currently you can build three levels with a maximum of 12 metres – to allow this to increase to almost three times of that will not be without consequences to the region.
“Aside from the environmental and community issues these changes will make, the potential to flood the market with such large numbers of dwellings will lessen the appeal of Noosa to investors and investors are important to keep the rental market afloat – it’s a fine balancing act and it’s important we get it right.”
To have your say on the Draft SEQ Regional Plan by 20 September 2023, visit www.shapingseq.statedevelopment.qld.gov.au
