Spring is here and along with the weather, the market is warming up. The past eighteen months has seen fluctuating market conditions with some residential sectors (low to medium priced properties) experiencing a correction of 5% to 10% in market value. Conversely, other sectors have performed very well. In particular, luxury homes ranging up from $3million plus, have increased significantly in value and the price gains are continuing.

All the indicators show that we seem to have turned the corner in the low to medium priced markets and buyers are ready and willing to purchase if properties are priced for the current market, and if they see value in what they are buying. Queensland fundamentals continue to be very strong, with 19,000 people migrating into Queensland per quarter, low interest rates and inflation, strong domestic demand, unemployment at a record low of 5.5% and a very strong resources sector. These healthy fundamentals bode well for the immediate future of Queensland and in particular, South East Queensland. Noosa, with its combined population cap and development restrictions, unique natural attractions and renowned relaxed, cosmopolitan lifestyle, will be a major beneficiary.

The buoyant economic outlook and consequent forecast property market strength is highlighted in the latest RESIDEX report and was also covered at a September 05 seminar, presented by National Australia Bank Chief Economist Spiro Papodopolous. A copy of the RESIDEX report and NAB presentation can be viewed through our office by request.

The market sectors currently creating the most interest are the lower end and the top end, with the middle range ($500,000 - $2M) still quite slow, but definitely offering good value for lifestyle seekers. Lower end house sales are mainly occurring in the Tewantin area, with inexpensive units in Sunrise Beach also finding support.

The upper end has continued to produce landmark sales during the third quarter, with a beachfront block in Arakoon Crescent, Sunshine Beach selling for $4.3M. Two dated waterfront homes were sold within 10 days of reaching the market at $3.75M and $3.9M on Noosa Sound, with the previous comparative sale at $3.55M. These results illustrate the ever increasing demand for exclusive positions, fueled by high equity levels and confidence of the wealthy, who appreciate the lifestyle advantages premium properties in Noosa offer.

In our opinion, areas to keep an eye on for strong future growth are seaside Peregian Beach, Noosa Waters waterfront property and Noosaville lifestyle products. Incidentally, RESIDEX, which supplies the main data for the Reserve Bank of Australia, have recently rated Noosaville as No.1 out of 100 postcodes in South East Queensland for future capital growth potential. They also rated Eumundi as No. 3 and Sunshine Beach as No. 6