Property prices Noosa Shire Sunshine Coast

Genuinely, anyone contemplating buying IP in the Sunshine Coast area had best make a move before the 'silly season' kicks in around second week of January '03. We've seen gains around 20%+ mark on anything with ocean views to now.

On the side, one area to look out for is Minyama with it's deep water access canal properties.

The economical outlook re the drought etc sees the Reserve bank hold off yet again on raising interest rates next week.

Is there any real sign of that bursting bubble guys?


Coastal property


I have very limited knowledge with respect to the Sunshine Coast specifically, however I believe that particular coastal areas will continue to outperform other areas, due to a number of factors, particularly the sheer scarcity of prime coastal property with good infrastructure and amenities. Like many investors, I have watched the meteoric rise of Byron Bay and neighbouring areas such as Lennox Head, and would exercise real caution when investing in that particular region. However, I believe that it is only a matter of time before other areas exhibit similar growth - for example, the Nambucca Coast has some extremely attractive areas and prices are way lower that further north. While clearly Nambucca is not as well located as Byron / Lennox Head, I believe that it is set to develop into a thriving coastal town with sustained growth in property prices. I would welcome your views on the mid NSW coast and anyone else's predictions for coastal property on the NSW / Qld coast. I should mention that I live in Hong Kong travel quite a lot and strongly believe that the NSW / Qld coast offers some of the best coastal property in the world - which reaffirms my faith in its long term potential.
I know that Port McQuarie and Coffs Harbor has gone ballistic (price wise :) in the last couple of years and they both arent too far from the Nambucca coast.

My opinion is that the whole mid north coast of NSW is due to take off, i live on the central coast which is in the middle of a minor boom right now (ripple effect from Sydney i suppose)
Nambucca / Coffs

Thanks Brains. I would also add that Coffs is just starting to get on the international tourism map, and was voted the world's most livable city in the under 75,000 population category. Having an airport from which the budget carriers operate should also help spur the place on.

I would be interested in anyone else's recommendations on the mid / north coast.

Hi all,

Agree with brains re: Mid North Coast. Prop in Port Macquarie purchased for 130k revalued (by Bank!) 180k in under 12 mths.

BUT be careful when saying that prices have "gone ballistic", then adding that the area "is about to take off". If prices have already skyrocketed, doesnt this imply the area has already "taken off"?

This is not to say that great cap. growth is not available, but I would caution anyone looking into this area that this MAY HAVE ALREADY HAPPENED. Be careful using last years cap. growth figures when planning next years windfall. Prices have gone through the roof in the past 18 mths and certain areas are unable to sustain 40% capital gains each year. Granted, quality props with water views, amenities etc etc will always be in demand, but entry prices to said proerties are now over 500k in Port Macq.

By all means look into investing in these areas, but, as usual, the due diligance disclaimers apply.


I should have been more specific and said that the rest of the mid north coast besides Coffs & Port McQuarie are about to take off.
Hi cathyb

Im not sure what title you are referring to, but i suppose people realise water restrictions are temporary and demand for quality coastal real estate is permanent (more or less).

btw..hows the market in cap. growth, rental vacancy and returns?
I was looking at Muswellbrook and Tamworth a while back but decided to look elsewhere.
Have been searching the Noosa Tewantin area for the last couple of months for an IP but cannot find decent rental returns.
If only I had bought 18 months ago new house and land package in Noosaville 4 bed under $200000. :mad:
Maybe too late

Hey guys.
It's begun. Local property prices have gone through the roof in the Sunrise Beach area. Vacant blocks alone of 875m2 with ocean views are commanding high 600k's and houses in same street for eg are almost double to more than double. And it isn't over 'til Easter. Seems the blue chip areas along this Sunshine Coast are becoming out of touch to some of the more average IP investor ules you're already 'in'. Yep, Minyama, Mooloolaba are developing quit well.
Has anyone else invested on this strip of coastline?
catchyas, MikeT.


Good returns are to continue there.. I have just invested in half a dozen & will sell a few in sydney next month to dump more money in that area.

if u look hard enough u can find IPs AS DISPLAY HOMES. $300 TO $400K WITH 7-8%net returns on 3 x 3 leases. not bad considering the growth is the real eye opener. Look a little more south,, Morichie , Bribie, caloundra..
Leave Noosa this year & let the others ride it's wave.

Cheers ocean view
Dear Geoff,

Must be your settings somewhere. Anyway have posted the contents of the page below.



Law of Supply and Demand 7/01/2003
Noosa district housing has gone through a period of unprecedented growth, but don't expect to see prices falling any time soon.

Since 1981, there have been four specific periods of growth in the Noosa region housing market, which covers Noosa Heads, Noosaville, Tewantin and the coastal strip from Sunshine Beach to Peregian Beach. The first was from mid 1986 to the end of 1988, the second from the beginning of 1991 to the middle of 1994, and a third period of gradual increase in demand from the end of 1996 to the start of 2000.

The fourth and most recent increase in demand, however, has featured a dramatic escalation not unlike the period from 1986 to 1988. In the 18 months between December 2000 and June 2002, demand climbed 85% from 930 houses per year to 1,716. To put this in perspective, at the beginning of the 1980 there were less than 100 houses sold per year.

Experienced observers of real estate know that when the number of house sales begins to climb, there is often no immediate or dramatic effect on prices. Properties which have been on the market for a long time finally sell, and those new to the market often sell in a relatively short time.

But eventually demand starts to exceed available supply, leading to a classic 'sellers market'. Buyers are so keen to buy they pay a higher price to secure their choice of property. This is what Noosa has experienced throughout 2002.

Prices continue to rise
The statistics show that dramatic escalations in demand are often followed by a dramatic decline in demand. Interestingly, such a drop off in demand does not lead to an immediate drop in price levels. In fact, price levels continue to rise for up to 12 months. During this time, the shortage of available
houses on the market still leads to high price levels as low supply drives the price rather than high demand.

The evidence shows that in Noosa real estate, once demand drops to lower levels, prices stabilise rather than drop. Sellers still get their price, but the time on the market lengthens.

So, what does this mean if you are thinking of placing your property on the market? If demand has begun to ease off, the recent increase in prices may soon end. If this is the case, delaying the decision to put your property on the market may gain you little increase in selling price and it
may take longer to achieve your price. A study of price changes of houses in Sydney and Noosa
during the last 20 years reveals two contrasting markets.

Sydney is characterised by the classic boom and bust movement in house prices, where there is a dramatic drop in price levels after a period of very strong price growth. There is some evidence to suggest Sydney may be entering a new period of price correction. Recent media reports indicate auction clearance rates have dropped to below 60% from levels of around 90% earlier this year. Noosa does not follow this cyclical trend. It has never experienced dramatic price fluctuations. Median prices have rarely dropped. When prices have risen, the rise has seldom exceeded 10% in any 12 month period.
Annual price increases in Noosa tend to sit between 1% and 10%. This stability is characteristic of quality real estate markets, and is also evident in certain quality sectors within the broader Sydney market. What is different about Noosa? It is virtually a quality market in its entirety, making it a market where you can invest with confidence.

Higher Unit Prices 7/10/2002
Higher Priced Units Demanded In Sunshine Beach

PRDnationwide recently conducted development research to look at what type of residential development should carried out on a quality development site at Sunshine Beach.

The first thing looked at was the demand for higher priced units and houses.

For Sunshine Beach 30% of unit sales were priced at over $350,000 compared to Noosa region where only 18% of unit sales were in this category.

A similar situation exists with houses where in Sunshine Beach 48% of house sales were over $350,000 and for the Noosa region only 32%.

Clearly there is a significantly stronger buyer base for top of the range units and houses in Sunshine Beach and in fact the very latest figures show that the group of buyers for Sunshine Beach units over $350,000 has increased from 30% to 35%.

To reinforce the strength of buyers for top of the range units in Sunshine Beach these latest figures show 22% of all sales of Sunshine Beach units were over $650,000 and 13% were over $750,000.

The next step was to look at the demographics.

Not surprisingly when we looked at the type of people who prefer to live at Sunshine Beach we found the bulk of Sunshine Beach owners are in the 30-50 age group which is the major and most active buying group.

To back this up we see from the Population Growth By Age graph that the 45-54 age group has shown dramatically greater growth than any other age group over the recent five year period. These are the people with the real money to spend.

Over the same five year period we see from the Change In Dwelling Types graph the dominant type of dwelling constructed were townhouses while the number of units dramatically decreased. This fits with the type of buyer we are dealing with who is more interested in a property they can live in or retire to.

Our Change In Ownership Type graph shows that around 50% of all buyers in the recent five year period did not borrow to buy and another 25% borrowed. What this means is at least half these buyers are high net worth individuals.

Spring Auction Weekend 1/10/2002
We had exceptional response to our recent auction weekend with large numbers attending each auction and many moving from auction to auction through the day. Unit 3, 66 Avocet Parade, Peregian Beach was sold immediately after the auction for $233,000 and the sellers were thrilled with the result. Unit 7 "Sunset Cove", Noosaville sold under the hammer. There were five bidders (two via mobile telephones) and two of these saw the property for the first time on the day of the auction. Unit 16 "Sandy Beach Resort" is currently under negotiation and look like being sold.

20 Seacove Court, Noosa Waters was passed in at $517,000 which was an exceptional offer for an older brick home on a dry block of land. There were around seventy people in attendance at the auction. The fifth property was withdrawn prior to auction as the owners have decided to sell the complex it is a part of in one lot.

Unit Sales Surge 25/09/2002
September has been an exceptionally good property sales month with approximately 50% of all sales being units. The trend we started to see emerging quite a few months ago has got stronger and stronger.

Much of the action has been for cheaper product but we are also seeing good sales of units around the $700,000 mark.
Thanks Sunstone.

I guess some page designers think just about anyone has Macromedia Flash these days, and don't provide an alternative (most of them do, but there's still one or two).

And informative article.
In the Coffs Harbours Advocate, Saturday January 11th there is a second page write up on
"demand for property has reached fever pitch"
in Coffs Harbour and surround.

R/E's are turning away dozens of people a day because they do not have the stock to sell.

Properties selling for 140k 18 months ago are now selling for 250k.

they do have some properties at the top end of the market but nothing at middle or low end.

I also feel Nambucca will have to explode soon, it is 20 minutes from South of Coffs and 20 mins North of Coffs is Woolgoolga, Arrawarra and Mullaway, great little beach villages, beautiful beaches.