Investors are feeling more confident along the Sunshine Coast, with conditions bright for commercial assets.
Ray White’s Paul Butler couples the increased confidence with interest rate cuts and an LNP victory at the federal election.
“I think at this point of the property cycle people are looking for security, and there’s no doubt that Noosa offers that in a couple of ways,” Mr Butler said.
Due to the location’s smaller market, there is a high demand-to-supply ratio.
“This means investors feel more secure knowing that there’ll never be endless amounts of that type of stock available, and that also translates into a higher liquidity factor, if it’s time to sell,” he said.
Stock accessible to the current market is squeezed, especially investment-grade stock.
“Most recent transactions have been off-market, with three sales in Hastings Street for a combined price of $8.8 million, in addition to some on-market transactions around $2 million each,” he said.
“A high volume of sub-$1 million stock has been sold to both owner-occupiers and investors.”
Mr Butler has noticed Noosa Junction has been a hive of activity recently, with the old KFC location sold just short of $2 million, and it now has secured a 10-year lease.
“So, for investors and from a commercial property point of view, the smart money is in Noosa now and for the foreseeable future.”