The Noosa Holiday Home is Back!

For the better part of a decade, a holiday property in Noosa was not the investment grade it had been just a few short years prior to the GFC.

But far from sinking into oblivion, the holiday home – whether humble unit or waterfront mansion – is making a remarkable comeback.

No longer the prohibitive cost to purchase commensurate with the heady days of 90% year-on-year occupancy, holiday homes are now showing gross returns upwards of 4.5%, after holiday expenses net of 3%, and absolute net of 2% and more.

Minimal to be sure, for the moment. But it won’t be for long, because the upward trend is strengthening.

While the returns are now surpassing interest on bank deposits, it is the capital gain over the coming decade that will impress.

But there are some things money just can’t buy that a Noosa holiday home delivers: the restoration of soul, the mending of relationships, the bonding with children, the time out to think, to live in the moment. Isn’t that what we strive for? To work to live? It sure beats living to work.

There is no more enjoyable an investment than a holiday property in Noosa.

While tourism overall has and will continue to improve, it is the shift in visitor demographic now underway that will have the ultimate impact. Specifically, two changes took place in the past year that will have a lasting snowballing effect…

1. Brisbane holiday makers and buyers are back. For years, Brisbane holiday makers headed for Bali, for Asia, for Europe. With our high dollar, overseas trips were cheap. But with our dollar now back to 75 cents of USD and other social factors driving extended and multi-generational family holidays, this market growth is reminiscent of the early 1980s – the period that preceded our greatest growth. These are repeat holiday makers and buyers less interested in returns than the lifestyle benefits of owning a Noosa pad.

2. Qantas is back. The withdrawal of Qantas from the Sunshine Coast airport a decade ago was the real catalyst for the downturn in Noosa holiday income and property values, not the GFC. With the shunting of paying passengers from Qantas Business Class to the truly shocking initial version of Jetstar, flying from a tin shed north of Geelong (with no Qantas lounge, no allocated seating and no customer service), Noosa suffered a dramatic and immediate decline in the demographic of visitor, the effects of which are still reverberating through the retail and restaurant industries.

But about six months ago, Qantas started flying direct from Sydney to Sunshine Coast on a daily basis.

While this in and of itself has underlined a lift in buyer interest and sales volume, it is the much anticipated Melbourne market’s return that will set a fire under property prices. And by all accounts, that may occur before Christmas of this year.

Occupancy is up. Top line income is up. And savvy holiday managers are concentrating on driving traffic away from the traditional online travel agents (OTAs) such as to Airbnb and direct bookings, shaving 12% off holiday expenses, the full effects of which won’t be seen until later in the next financial year.

When Melbourne holiday makers are able to fly Qantas direct from Tullamarine to Sunshine Coast, we will see a significant increase in occupancy, income and property values.

The expansion of the Sunshine Coast Airport will follow within 4 years, adding a second runway, a greater volume of direct domestic flights, and specifically, direct international flights.

Let there be no mistake; if it is investment returns you seek – do not rely upon the financial statements of years just past, but the future potential that such dramatic enhancements to our infrastructure, transportation options and demographic of visitor will bring.

Now is the time to buy and I would urge you to do so with some urgency. See a more detailed analysis of the current market trend in the article When is the Best Time to Sell? Well worth a read.

Note that In addition to the properties listed for sale at I always have a half-dozen properties selling off-market across the spectrum of prices.

Want something we don’t have on the books? Let me know your buyer criteria and I will take care of the rest, whether holiday, residential or commercial property,