Sunshine Coast smashes records with one Management Rights settling on average every 14 days in past financial year

ResortBrokers Sunshine Coast team has racked up $44 million in Management Rights’ sales in the area in the past financial year alone, including a number of high-profile record deals.

Brokers Glenn Millar and Chenoa Daniel sold 26 Management Rights – averaging one every two weeks – and the Sunshine Coast surge shows no signs of waning.

Notable sales with total combined asset sales of $ 18,389,770 and total combined real estate (within the sales) – $6,100,000 include:

Noosa Pacific – Prime Waterfront Resort – Noosaville

  • 51 units in complex
  • Sale Price $7,823m – record price for a manager’s unit and record multiplier for Noosaville

Maison Noosa – Absolute Beachfront Hasting St Noosa

  • 23 units in complex
  • Sale Price $6,827m – record price for a Noosa Heads Management Rights

Noosa Quays – Prime Waterfront Resort – Noosaville

  • 23 Units in complex
  • Sale Price $4m – sold immediately after 2 sales had fallen over with a competitor

Mr Millar says Management Rights have always been considered a relatively safe asset class.

“High-end rights have been in strong demand due to the ongoing growth of the tourism sector, especially on the Sunshine Coast. The Hasting Street Rights was under offer within 24 hours of listing and never hit the market. Return on Investment ranges from 12-14%,” he says.

“The demand to purchase MLR assets will continue to stay strong for the short-to-medium future with our strong network of buyers continuing to invest into our industry.

“With the increase in interest rates and the ongoing COVID issues, there will be some correction needed in the mid-to-lower ends of the market and high unit prices have tipped the equation around from being accepted as a maximum of 40 per cent of the total value of the rights and business. Now, in many cases, it’s 60 per cent of the total value. These multipliers will need to be reduced to maintain the expected ROI.”

Ms Daniel says purchasers are seeking high-net properties in prime tourism locations with a minimum ROI of 12 to 14 per cent.

“Business-only rights are always in high demand due to the massive growth in real estate, making some of the smaller properties much harder to sell,” she says.

“More and more buyers are looking for higher quality manager’s accommodation and in many cases are prepared to pay more to secure this type of accommodation.

“Generally, Queensland and NSW still make the highest percentage of buyers, with local experienced operators and consortiums jumping on prime waterfront properties, often before they hit the market.”

While Noosa Heads and the Mooloolaba beachfront have always attracted high demand, property prices right across the Sunshine Coast have witnessed a frenzy in demand. Permanent complexes within a ten-kilometre radius of the Sunshine Coast University Hospital always attract strong buyer interest and sell quickly.

Noosa Management Rights sold by ResortBrokers
Noosa Management Rights sold by ResortBrokers

Article source: www.thehotelconversation.com.au

Did you miss our previous article…
https://www.noosapropertymanagement.com.au/?p=636

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