The Gold Coast has moved past its reputation as just a holiday and entertainment destination.
Its staging of major events, most notably the Commonwealth Games in 2018, has brought much international and national spotlight on the commercial property sector. Jason Luckhardt, Director of NAI Harcourts Gold Coast says, “development of office space, and retro fitting of some of the Gold Coast’s older commercials spaces has been very in demand, but all sectors have seen an upsurge in interest.”
Jason Luckhardt, Director of NAI Harcourts Gold Coast
Sydneysiders are cashing out of their hot property market and favouring Queensland which is impacting on all facets of the property market with the Gold Coast benefiting.
This interstate migration to Queensland according to Macquarie could inject $8.1 billion into the Brisbane and southeast Queensland housing markets and in turn inject new capital into the commercial property sector.
The national trend of higher order investment stock in prime locations is seeing the Gold Coast being similarly picked over by all investment buyer segments from high nett worth to REITS and funds. “Stock in this area is incredibly tight and yields have dropped dramatically to chase results resembling southern investments, although the Gold Coast still seems to offer a better value marginally,” says Luckhardt.
“Industrial properties are traditionally a lot smaller than in the Gold Coast than to areas like Brisbane and nearby Logan, and as such are in the “sweet spot’ for owner occupiers, and they are realising huge price growth. Similarly, retail is booming, and we are seeing existing vacancies filling and new developments and sites also with strong demand”.
Luckhardt is undertaking targeted marketing to meet buyer demand. “This is essential now with many properties getting huge demand buyers are keen to register for updates and know as soon as the properties are available”.
According to Luckhardt “transport orientated developments will start to dominate the retail sector and will outpace neighbourhood assets that aren’t top quality. People on the Gold Coast continue to gravitate to lifestyle choice retail and need it sparkle- and why not, it is a competitive market out there so let them compete”.
Creating the highest demand by purchasers is the high value asset class with multiple tenancies with long WALEs (weighted average lease expiry). “This by far the hottest in demand whilst mid-tier owner occupier stock is a great quick win”.
Luckhardt advises clients to have patience in this market. “Trying to find value in a market that is running hot can make people jump too quickly. There is continuing value, but don’t panic and buy for the sake of buying. Look for length and security of leases if playing in the premium stock. Rough diamonds are few and far between but worth hunting for.”
Written by Susie Laery