|
 |
Investment
is not just about money. For many people, an investment decision
is often linked to lifestyle. With a latitude similar to southern
Florida, the Bahamas and the Canary Islands, Noosa enjoys a truly
delightful climate. And when buying into a market that has produced
excellent returns, investors know when they are on a winner.
The annual average rate of population
change in the Noosa region between 30 June 1996 and 30 June 2001
was 3.9%, compared to the Queensland average of 1.7%.
The Noosa Shire’s estimated population
is just over 44,000, with approximately 32,000 living in the coastal
and river localities of Noosa Heads, Noosaville, Tewantin, Sunshine
Beach, Sunrise Beach, Marcus Beach, Castaways Beach and Peregian
Beach. In the 2001 edition of its publication, Population Trans
and Prospects, the Department of Local Government and Planning estimates
the population will grow by 25% to about 55,480 people by 2011.
This is expected to drive continuing growth in demand for the limited
real estate available.
Properties at the ‘top end’
of the market have produced excellent returns. Prime locations with
direct water and beachfront access have led the way. A recent survey
of sales of apartments in Netanya Noosa, a key beachfront property
in Hastings Street, revealed the following examples of annualised
compounded sales value increases
|
| Sales Price 1994 |
Sales Price 2000 |
No. of Months |
Compounded Annualised Growth |
| $399,000 |
$1,050,000 |
63 |
20.15% |
| Sales Price 1994 |
Sales Price 1998 |
No. of Months |
Compounded Annualised Growth |
| $640,000 |
$1,700,000 |
44 |
29.4% |
| Sales Price 1994 |
Sales Price 2001 |
No. of Months |
Compounded Annualised Growth |
| $360,000 |
$1,050,000 |
80 |
17.47% |
| Sales Price 1994 |
Sales Price 2001 |
No. of Months |
Compounded Annualised Growth |
| $160,000 |
$1,100,000 |
74 32 |
.1% |
| Sales Price 1994 |
Sales Price 1997 |
No. of Months |
Compounded Annualised Growth |
| $200,000 |
$700,000 |
28 |
57% |
The full gross return is actually higher than
this when rental return is added to these figures. But these are
not isolated examples - beachfront units have consistently provided
sustained compounded growth in values between 14 and 20%.
General property sales prices have shown excellent
growth rates in key areas of Noosa. An example is the movement of
the median sales price of houses in a major area like Noosaville
compared with all of the Sunshine Coast and Gold Coast house sales:
|
 |
| |
1996 |
2001 |
5 yr change % |
| NOOSAVILLE |
|
|
|
| Median Price |
$194,000 |
$311,500 |
60.6% |
| Number of Sales |
134 |
252 |
88.1% |
| SUNSHINE COAST |
|
|
|
| Median Price |
$138,000 |
$182,500 |
32.2% |
| Number of Sales |
4,277 |
7,305 |
70.8% |
| GOLD COAST |
|
|
|
| Median Price |
$174,000 |
$228,000 |
31.1% |
| Number of Sales |
5,578 |
7,328 |
31.4% |
Investment in real estate provides an excellent
rate of return. The following table compares total property returns,
comprising median price change per annum (gross, compounded 5 years)
combined with gross rental returns, for houses in Sunshine Beach,
all of the Sunshine Coast and Gold Coast:
| |
Median Price Change p.a. |
Rental Return |
Total Property Returns |
| Sunshine Beach |
13.7% |
2.6% |
16.4% |
| Sunshine Coast |
5.7% |
5.7% |
11.4% |
| Gold Coast |
5.6% |
5.5% |
11.1% |
|
Email us for the latest figures
noosa@prdnationwide.com
|
