Noosa (Not so) Sound

I'd heard that the Gold and Sunshine Coast property markets weren't faring that well but I had no idea quite how bad things were till I travelled up to Noosa for a short break. Sure, the same properties that were for sale 3mths, 6mths and 12mths ago are still for sale today, but that's often the case on the coasts, where the more expensive stuff in particular, takes a while to shift.

For example, I went to view a property on Noosa Sound (in Key Court) in 2007 that eventually sold in mid-May 2009 with a 20% haircut on the original asking price. The period that straddled May 2009, if you recall, was actually fairly strong for property.

Easter is traditionally a huge period for property sales in this part of the world, and after a disappointing Christmas for the spruikers, Easter 2011 was going to put the year and the market back on track -- or so some of the big knobs were saying in the press ahead of their "Gala Auction" events. I haven't yet looked at how all the agents got on yet but I thought I'd get the ball rolling with the Big 2:

Tom Offermann Real Estate was first up on Thursday, April 21st, at the Sheraton. They auctioned 17 properties that day (2 on-site) and sold a total of ZERO out of the 17. "It's our people that make the difference" -- so the marketing blurb goes, but I wouldn't wish to be overly critical at this juncture and it would only be fair to see if their competition fared any better.

Richardson & Wrench also held their "Gala" event at the Sheraton, two days later. The press insisted they had 11 properties on the block, although I counted only 10. R&W managed to secure ONE sale out of their 11 efforts and this was a Receiver's Sale i.e. a property that had been taken possession of and was going to be sold whatever. The property, 37 Mossman Court, sold for $3.5m which sounds quite a result, until you consider that this masterplan development would probably have been on the market for closer to $6m under ordinary circumstances.

I think it's fair then to conclude that, without the gift of a receiver's sale, the Big 2 agents in Noosa would have turned in a total of ZERO sales at one of the two most important marketing periods of the year. Added to this is the fact that there is an absolute mountain of other property for sale in the area. At some point, something's got to give.

The above two auction events/catastrophes (take your pick) were covered in the local press. In the Friday 29th edition of The Noosa Journal, the paper's Property Editor, Geoff Crocket, titled his report (buried on Pg 12 - why so coy?):

Easter a Treat for Auctions

"With stunning blue skies, full car parks and busy beaches, Noosa certainly turned on a treat for holiday-makers this Easter .... strong crowds at the two major in-room auction events .... On Thursday night ... 101 Noosa Parade, Noosa Sound provided the most excitement of the evening ... 11 bids bringing a buzz to the room and helping to bring the sale price to the $2 million mark." ($2m was clearly nowhere near reserve and this didn't sell)

"Easter Saturday's auction ... off to a solid start ... bidding for 37 Mossman ... reached $3.49m. Apartment 5, The Emerald, 42 Hastings Street, was another standout, sold under the hammer for $740,000."

Now, you would be forgiven for thinking, having read the key bits of the article, that these gala events were a raging success, with the author mentioning just 'one or two of the highlights' while the overall tone implies there were other successes. The actualite: 1 sale (under contract, post hammer) out of 28 lots. For those of you who've spotted the obvious mistake, let me clarify that Apt 5 at The Emerald is in fact available to view this Saturday and next, should you so desire. A curious state of affairs for a property that's apparently just "sold under the hammer", I'm sure you'll agree.