Market activity in the residential housing market remains strong across most locations. This activity is being driven by a number of key factors including record low interest rates, First Home Buyers Grant, the success of the work from home model and a significant under supply of stock in most market sectors.
The big trend to mention here is the demand for living in regional locations is going from strength to strength especially in the more desirable areas. Some key stand out performers are Far Northern NSW, Port Macquarie, Gold and Sunshine Coasts and Mornington Peninsula. Regional areas are being seen as a safe haven during Covid, providing a real change in lifestyle away from the bustle of the major cities. The ability to work from home thanks to the advanced technology has contributed strongly to increasing demand levels.
E.g The Noosa Sound housing market which has been a significant beneficiary of the lifestyle change driving the market in regional areas. Analysed sales evidence is showing an increased land value of between $1.5M to $2M since the beginning of 2020 for waterfront properties.
The vast majority of the sales have been off market and some buyers in the market are looking for site amalgamations to create larger waterfront holdings. One recent example is that of an owner purchasing a $9 mil adjoining property of what was a reasonably good quality home to demolish to create a large property over two sites. Buyers for these properties are generally high net worth individuals generally from interstate looking at establishing a foothold in the area.
The following graph clearly shows the increased activity in the area during the pandemic and we would envisage more market leading sales will occur before the end of the calendar year if stock becomes available.
As a side note- this acceleration in the Noosa Sound market really took hold during the latter part of 2020 with a significant further jump in prices during the last quarter. A large proportion of sales were 'off market' transactions yielding an additional spike in values suggesting an increase of well over 50% for land values for 2020.