2 September 2026: Claims the Noosa property market has burst are missing the mark, according to local buyers’ agent Kirstie Klein-Hunter, who says the Federal Budget has accelerated a slowdown that was already underway.
The 2026-27 Federal Budget announced changes to negative gearing and Capital Gains Tax (CGT) designed to reduce investor demand for established property.
From 1 July 2027, negative gearing will be limited to new builds, with existing arrangements preserved for properties held before Budget night. The Government will also replace the 50 per cent CGT discount with inflation-based indexation and introduce a minimum 30 per cent tax rate on real capital gains accruing from 1 July 2027.
Klein-Hunter, director of Klein Hunter Property Buyers and sister company Allawah Noosa, said the changes have affected investor confidence, but rejected suggestions they had suddenly burst a Noosa property bubble.
“Some are saying the Noosa bubble has burst, but I don’t agree that Noosa was operating in a bubble in the first place,” Klein-Hunter said.
“The Budget has been a catalyst for a change in sentiment, but the market was already slowing. Buyers were becoming more cautious, holding costs were increasing and investors were looking harder at the numbers before committing.
“What the Budget has done is give some buyers another reason to wait.”
Klein-Hunter said Noosa operates differently to markets where owners can be forced to sell quickly because of changing economic conditions.
“Many Noosa property owners are not in a position where they have to sell,” she said.
“They may have owned the property for years, have substantial equity or use it as a second home. If they don’t achieve the price they want, they can simply hold onto it.
“That creates an interesting situation. Buyers may expect falling sentiment to translate immediately into lower prices, but sellers don’t necessarily have to meet them there.”
The result, she said, could be longer selling periods and fewer transactions as buyers and sellers adjust their expectations.
“For buyers, patience is going to matter,” Klein-Hunter said.
“You may have to wait for the right property, wait for a vendor whose expectations align with the market or wait for new stock to become available.
“Trying to force a deal simply because the wider market has slowed doesn’t necessarily work in a tightly held market like Noosa.”
Melbourne Buyers Watching Noosa Closely
Klein-Hunter said changing conditions in Melbourne were also influencing sentiment among interstate investors considering Noosa.
Victorian buyers have been a source of demand for Noosa property in recent years, but Klein-Hunter said some are now approaching Queensland investments with more caution after watching values come under pressure in their home market.
“Melbourne buyers have seen that property values can go backwards, and naturally that changes the way they think about their next purchase,” she said.
“They’re asking whether the same thing could happen in Noosa.
“I could tell them Noosa property will never fall, but that wouldn’t be responsible advice. Recent history has shown us that markets can change quickly and anything can happen.
“No property market comes with a guarantee.”
Klein-Hunter said the distinction was that Noosa continued to face constraints around available property and owners willing to sell.
“That doesn’t mean prices cannot fall. It means buyers need to understand the characteristics of this particular market rather than assuming what is happening in Melbourne, Sydney or Brisbane will automatically be replicated here.”
Budget Changes Shift the Investment Equation
The Federal Government expects its housing tax reforms to reduce property prices by around two per cent over several years relative to where prices would otherwise have been.
Klein-Hunter said investors were already reassessing established property purchases in response to the changes.
“Investors are doing more calculations before they buy,” she said.
“They’re looking at tax, holding costs, rental returns, approvals and what their exit position could look like.
“For Noosa investors, that assessment can also include short-term letting approvals and whether a property can generate income when they aren’t using it.”
She said this did not mean investment demand would disappear.
“What we’re seeing is a change in behaviour rather than the end of demand,” Klein-Hunter said.
“Buyers have more questions, negotiations are taking longer and there is less willingness to make a decision based on fear of missing out.
“That adjustment was already coming. The Budget has simply brought it into sharper focus.”
Klein-Hunter said buyers considering Noosa over the coming year should focus on the individual property rather than trying to predict the bottom of the market.
“There will be opportunities, but buyers shouldn’t assume every property is suddenly going to become cheaper,” she said.
“Understand what you’re buying, understand why the owner is selling and be prepared to wait.
“Noosa hasn’t stopped being Noosa. What has changed is the pace of the market and the way people are making decisions.”
Ends.
For more information and images, please contact Jennifer or Heather at The Comms. People:
Jennifer Swaine | 0438952830 | jen@commspeople.au
Heather Mollins | 0412421411 | heather@commspeople.au