The ResortBrokers Sunshine Coast team racked up $44 million in management rights sales in the region in the last fiscal year alone, including a number of high-profile record deals.
Brokers Glenn Millar and Chenoa Daniel sold 26 management rights – an average of one every two weeks – and Sunshine Coast’s surge shows no signs of waning.
Notable sales with total combined asset sales of $18,389,770 and total combined real estate (in sales) – $6,100,000 include:
Noosa Pacific – Prime Waterfront Resort – Noosaville
- 51 units in complex
- Sale price $7,823 million – record price for a manager unit and record multiplier for Noosaville
House Noosa – Absolute Beachfront Hasting St Noosa
- 23 units in complex
- Sale price $6,827 million – record price for Noosa Heads management rights
Noosa Quays – Prime Waterfront Resort – Noosaville
- 23 Units in complex
- Selling price $4 million – sold immediately after dropping 2 sales with competitor
Mr. Millar says Management rights have always been considered a relatively safe asset class.
“Premium rights have been in high demand due to the continued growth of the tourism sector, particularly on the Sunshine Coast. Hastings Street rights were offered within 24 hours of listing and were never commercialized. The return on investment varies from 12 to 14%,” he says.
“Buying demand for MLR assets will continue to remain strong in the short to medium term as our strong network of buyers continues to invest in our sector.
“With rising interest rates and 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 of being accepted as a maximum of 40 percent of the total rights and enterprise value. Now, in many cases, it’s 60 percent of the total value. These multipliers will need to be reduced to maintain the expected return on investment.”
Mrs. Daniel says buyers are looking for high-end properties in prime tourist locations with a minimum return on investment of 12-14%.
“Corporate rights are always in high demand due to the massive growth in real estate, which makes some of the smaller properties much harder to sell,” she says.
“More and more buyers are looking for higher quality management housing and in many cases are willing to pay more to secure this type of housing.
“Generally, Queensland and New South Wales still represent the highest percentage of buyers, with experienced local operators and consortia jumping on prime waterfront properties, often before they arrive on the market.”
While Noosa Heads and the Mooloolaba beachfront have always attracted strong demand, property prices across the Sunshine Coast have seen a demand frenzy. Permanent complexes within a ten kilometer radius of Sunshine Coast University Hospital always attract strong interest from buyers and sell out quickly.
To request a sales analysis, please contact one of ResortBrokers’ selling brokers Glenn Millar and Chenoa Daniel via the contact details below.
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