Noosa Property Market Update | Winter/Spring 2023

NOOSA MARKET UPDATE

Winter / Spring 2023

NELLERRE.COM.AU

L O C A L M A R K E T U P D AT E

Land tax increases & how they may impact you

Many property owners in Noosa and the

When working this out, the government’s

Sunshine Coast have found their land tax bills

valuers will consider various factors, including

increasing over the past few years. In this market

the property market, the land’s physical

update, we explore why.

attributes, how the land is being used and

Who is liable for land tax in Queensland?

If you own land in Queensland valued over $600,000 that is not used as your principal place of residence, you’re likely to be liable for land tax. This includes investment properties, commercial properties, or vacant land. You can also be liable for land tax on your principal place

any constraints on its use.

The land tax rates, thresholds, and exemptions vary depending on how you own the land (i.e., whether as an individual, corporation, trustee, or absentee), and companies and super funds generally have to pay more land tax than individuals.

of residence if you have additional dwellings

The government also calculates your liability

or use your land for business purposes.

based on all the land you own in Queensland.

The Queensland government calculates the amount of land tax you need to pay based on the ‘unimproved capital value of the land’ - that is, its value without any buildings, structures, or other improvements.

For instance, if you own three properties, each worth $500,000, it will assess you based on a land value of $1,500,000.

How much more land tax do you have to pay?

That depends on factors including how much the value of your land has increased and whether you own it as an individual or through a vehicle such as a company or super fund.

Written by Robbie Neller Director / Sales Agent 0473 577 828

But say you own properties with a combined

Impact on Property Investors and Property

land value of $2 million that increased in value

Owners with Substantial Assets

by 50% so that they’re now worth $3 million.

The difference in land tax would be $16,500 ($37,500 v $21,000 as an individual or $45,000 v $29,500 for a company or super fund).

A further potential increase ruled out

Still, the increased land values our area has seen are likely to have a real impact on many people’s budgets.

For example, property owners with multiple properties or properties worth over $4 million

If that wasn’t enough, the truth is that this

could be facing land tax bills upwards of

wasn’t the only rise that the Queensland

$30,000 per year. This could alter budgets

government had initially planned. The Revenue

and even result in financial difficulties for

Legislation Amendment Act 2022 was intended

those who rely on rental income.

to introduce significant changes to land tax in Queensland from 1 July 2023. This included counting a taxpayer's total landholding value in Australia when determining their land tax liability.

However, the government’s plans were abandoned when governments in other jurisdictions refused to comply by sharing property records in their States or territories.

That said, the government also has various land tax exemptions. These include if you live in the property as your main residence, or use it for certain activities such as a sporting club.

Alternatively, it may mean that some landlords are forced to increase the rent on their homes or holiday lettings - even beyond their already high levels, leading to further issues around housing affordability in our area.

We have had discussions with several property owners who are concerned about the sharp jump we have seen in UCV's.

If you’re likely to be affected, you should seek professional advice now. There will no doubt be cases where families who have held land or homes across several generations may be forced to sell due to affordability. We’ve also

You’ll need to claim that exemption - for

seen property owners exploring alternative

instance, if you begin living in a holiday home

investment options to diversify their portfolios.

as your main residence. You can find out how to do that via the Queensland Revenue Office website.

L O C A L M A R K E T U P D AT E

Prestige Property Sales across Noosa 47 Mossman Court, Noosa Heads

20 The Promontory, Noosaville

$23,250,000

$6,100,000

21 Dolphin Crescent, Noosaville

18 Maher Terrace, Sunshine Beach

$12,000,000

$6,100,000

17 Wyuna Drive, Noosaville

74 Upper Hastings Street, Noosa Heads

$8,700,000

$5,750,000

11 Key Court, Noosa Heads

37 McAnally Drive, Sunshine Beach

$8,500,000

$5,650,000

38 Saltwater Avenue, Noosaville

5 Seamist Court, Sunshine Beach

$8,000,000

$5,500,000

2/29 Allambi Rise, Noosa Heads

2/38 Park Crescent, Sunshine Beach

$7,600,000

$5,200,000

51 Tristania Drive, Marcus Beach

125 Shorehaven Drive, Noosaville

$7,425,000

$5,195,000

36 Lorikeet Drive, Peregian Beach

11 Depper Street, Sunshine Beach

$7,250,000

$4,950,000

24/512 David Low Way, Castaways Beach

100 Lorikeet Drive, Peregian Beach

$6,500,000

$4,800,000

19 Edward Street, Noosaville

$6,200,000

SOURCE: CORELOGIC.COM.AU

dec 22 - may 23

THE BEST OF NOOSA

Local Find: CLO Studios In our latest feature as part of our Local Finds series, we interview Chloe Tozer, founder of CLO Studios.

As an interior design atelier, CLO Studios is responsible for the interiors of some of the most iconic properties in Noosa, and offers a selection of unique furniture and works by local artists in their recently expanded boutique. Chloe talks about her journey from jewellery artisan to interior designer; the recent rebranding of her business, and her plans to expand their online store. Scan the QR code above to read the full interview. clostudios.com.au

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nellerre.com.au/articles

I N T E R S TAT E O P I N I O N

In this edition, we speak with Oliver Bruce, the Director/Auctioneer of Marshall White’s Port Phillip office – a diverse, bustling region south of Melbourne’s CBD.

Melbourne, Australia

What is the general state of the market

How do you expect the market to perform

at present in the city of Port Phillip?

in Melbourne for the remainder of the year

“ We are dealing with levels of under supply

and beyond into early 2024?

I have not witnessed during my 20+ years

“ Generally, winter is the least active time, then

in the industry; this scarcity of available stock

as we hit school holidays and head towards

has heightened competition amongst buyers

spring it gets busier with not only increased

vying for the properties that are on market,

stock levels, leading to a more balanced

pushing up prices and in some cases,

market and possibly downward price

recording record results, particularly

pressure related to the more listings

in the prestige sector.”

creating a wider choice.”

What do you feel has attributed to the

What would be the best advice for any

recent changes in the market?

vendor who is on the market at present?

“ The increase in interest rates and trepidation

“ Polished professional marketing is essential

around this has certainly caused hesitation

to ensure your property stands out, it enhances

amongst vendors; many not confident that

perception of value as well as volume

the timing to sell is right, and therefore

of enquiry; and of course, presentation

holding their property for longer and playing

needs to be first-class.”

the waiting game. This uncertainty has exacerbated the shortage of stock, reducing choice for buyers.”

Have you noticed an influx of people moving back to Melbourne now the Pandemic has

Have you noticed an increase in people moving from your area to Noosa? “ Yes, I know people including clients, friends and those in my wider network who have

reached its peak?

relocated to Noosa, even a few real estate

“ No, not an influx – however, there has been

back any time soon, if ever! ”

some noticeable movement on a micro scale in this area; there is certainly movement back interstate and inland to the country. ”

agents; I’m not anticipating they will move

I N D U S T R Y U P D AT E S

Team Spotlight

Neller Real Estate offers a culture of collaboration and innovation, where the latest technology is coupled with team-based excellence in customer service.

At Neller Real Estate, our unmatched internal

We believe recent trends such as digital

operation practices and the attention to detail

marketing and data-driven analysis have

of our team mean we’re always available

transformed the real estate sector, offering

to provide outstanding care, communication

new potential for agents to attract buyers

and service to every one of our clients.

and service their clients. We embrace this

We constantly invest in professional training,

new technology, complementing it with

mentoring and skills development to keep

a collaborative team-based approach to

us one step ahead.

provide an effective and smooth sales process.

Our unique team-based approach to selling

In doing so, we combine old-fashioned hard

property provides our clients with a distinct

work with the latest, most effective marketing

edge when compared to the traditional agency

techniques to help find the right buyers for

model - our team truly works together in

your home and achieve the best price and

complete collaboration from beginning to the

provide you with an unparalleled level of

completion of your eventual sale to ensure

support. If you are considering selling your

optimal results and a first class client

home, contact us on 07 5471 4000 to arrange

experience.

a complimentary appraisal.

THE BEST OF NOOSA

Local Find: Lucio’s Marina In the business of feeding people for generations, hospitality truly does run through the veins of the Galletto family. Son to Italian immigrant parents, Matteo Galletto continues the family tradition of offering fine Northern Italian cuisine, showcasing the best quality local seafood our region has to offer.

Overlooking Noosa River, Lucio’s Marina offers an unforgettable fine food and dining experience, within contemporary elegant surrounds. To make a reservation, visit:

luciosmarina.com

E C O N O M I C U P D AT E

Seizing Opportunities in a Dynamic Market The global economic landscape is evolving,

Monitoring productivity growth and rising unit

presenting a range of opportunities for savvy

labor costs will be crucial to identifying sectors

investors. As core and headline inflation show

that can potentially outpace population growth

signs of easing worldwide, it's an optimal time

and generate positive returns.

to consider strategic investments that can potentially yield favorable returns. While the

Equities

Reserve Bank of Australia maintains a cautious

A Source of Resilience: Equity markets have

stance with incremental rate increases, it also

demonstrated strength in 2023, offering

recognizes the importance of monitoring global

investors positive returns year-on-year. This

factors such as household spending, inflation,

buoyancy can be attributed to factors such

and the labor market.

as economic resilience, the promising prospects

Diversification, a Key to Navigating Uncertainty

of AI, receding headline inflation, and ample liquidity. As the market adjusts to tightening liquidity conditions, the outlook for equities

With the prospect of weaker global growth

will depend on a projected recovery in earnings.

extending into 2024, investors can proactively

Balancing growth prospects with currency

safeguard their portfolios by diversifying their

trends will be instrumental in identifying resilient

asset allocation. By carefully selecting a mix of

investment opportunities.

investment options, individuals can position themselves to mitigate potential headwinds and capitalize on emerging opportunities. Now, more than ever, it is crucial to explore avenues that offer stability and growth potential in an evolving economic landscape.

Navigating Economic Challenges While the Australian economy has experienced a slight slowdown, it is not yet at a magnitude that would deter further interest rate hikes.

Although the recent growth rate of 0.2% in the March quarter was lower than the previous quarter, the annual growth rate of 2.3% indicates resilience in the face of challenges.

The evolving economic landscape presents an array of investment possibilities for individuals seeking to capitalize on shifting trends. By diversifying portfolios, keeping a pulse on currency and bond markets, and identifying thriving sectors, investors can navigate the challenges and seize opportunities in an ever-changing financial landscape.

Contributed by Kane Livingstone Director, Stonehouse 0400 080 998 kane@stonehousegroup.com.au

T H E

M A R K E T

O U T LO O K

W R I T T E N B Y E L I Z A B E T H T I L L E Y, N E W S C O R P Q U E E N S L A N D R E A L E S TAT E N E W S E D I T O R

The fear and uncertainty that gripped

Many have taken advantage of the opportunity

the market earlier this year seems to be

to pounce with a little less competition in the

thawing coming into winter, especially

market and sellers’ price expectations easing

in ever-sunny Noosa.

slightly - although choice is still limited.

While there is still no shortage of buyers

The fear of missing out (FOMO) has clearly

for Noosa property, they are generally more

subsided and negotiations generally require

cautious and want to know they are not

a little more give-and-take from both parties,

overpaying for a property - except for the

with sellers coming to the realisation pandemic

top end of the market, which continues

prices won’t last forever.

to outperform.

Auction clearance rates remains well over

Despite the headwinds of higher interest rates,

80 per cent, with agents reporting an average

home hunters and investors (chasing strong

of three to four registered bidders per auction.

rental yields) from far and wide are still looking for their piece of paradise in the Noosa shire, provided the price is reasonable.

The prestige sector ($4m-plus) has performed extremely well so far this year, with waterfront properties, in particular, seemingly immune to any softening in the market.

Noosa’s tightly-held, waterfront trophy homes

And, an absolute beachfront, 20-year-old home

have always been hard to get hold of, but supply

at 100 Lorikeet Drive, Peregian Beach, sold the

continues to be particularly lacking in this space.

night prior to auction for $4.8m. The home had

Off-market sales are still the trend at the top end of the market, and when an opportunity to purchase one of these homes arises, there

been owned by the same family for more than three decades and fetched a price well above their expectations.

is always a willing buyer acutely aware they

The only way is up, if prices continue to grow at

could wait many months or years to find

the same rate they have over the past five years.

something similar – irrespective of the price they were willing to pay.

Recent analysis by PropTrack projected that Noosa Heads would have the highest potential

To give you an idea of just how much of

growth of any other region in Queensland

a premium buyers are prepared to pay for

by 2028 if prices were to continue to grow

the perfect Noosa property, take 47 Mossman

at the same pace.

Court in Noosa Heads, which fetched $23.25m in December.

The data found the current median home price (houses and units combined) of $1.95m would

The Paul Clout-designed waterfront villa

jump a whopping 150 per cent in five years

was purchased for $10.9m in 2020 by Hancock

to $4.875m, based on what we’ve seen in the

Prospecting executive Dan Wade, but just two

past five years.

years later, Sydney socialite Jaclyn Gazal was prepared to pay more than double that for it.

Whether that same price growth is likely to eventuate is yet to be seen, but there’s

In recent months, some of the standout sales

no doubt long-term there is no stopping the

in the region include a three-bedroom unit at

powerhouse market that is Noosa.

2/29 Allambi Rise, Noosa Heads, which fetched $7.6m; a 1980s gem at 17 Wyuna Drive, Noosaville, which sold for $8.7m; and a four-bedroom, waterfront house at 11 Key Court, Noosa Heads, which changed hands for $8.5m.

A quintessential beach house at 51 Tristania Drive, Marcus Beach recently sold post auction for $7.425m, breaking the suburb record.

Wondering what your property is worth?

Scan for an instant & complementary estimate of the value of your home.

MEET OUR PEOPLE

High calibre client service, crafted to match the brilliance of our area.

Robbie Neller Director / Sales Agent 0473 577 828 robbie@nellerre.com.au

Joel Nicholls Sales Agent 0421 722 195 joel@nellerre.com.au

Melisa Neller Business Manager melisa@nellerre.com.au

Siena Moffat Executive Assistant siena@nellerre.com.au

Tanya Reed Administrator administration@nellerre.com.au

Josh Moody Sales Cadet josh@nellerre.com.au

Neller Real Estate Shop 11, 224 David Low Way, Peregian Beach, Queensland 4573 T 07 5471 4000 F 07 5471 4001 administration@nellerre.com.au nellerrealestate nellerre.com.au