RESEARCH
A LACK of quality stock on the Gold Coast commercial market has led to a significant drop in transactional activity in 2023...
According to the latest data from Colliers, transactions across the Gold Coasts’ retail, office and industrial sectors fell around 39% to $648 million on 2022 sales from October 2023...
“If you looked at the data at face value and saw a 39 per cent drop in transactional activity across the sector you would automatically assume we are in some kind of downturn,”...
“But the reality of the situation is that institutional and private investors are holding onto their assets because of the buoyant sentiment on the Gold Coast, driven by migration and...
Retail sales were down significantly from 2022, with 2023 seeing just $193 million in sales compared to $675 million in the year before...
The office market, which has been supported by record low vacancy rates, saw an increase in transaction value, with sales of $120 million this year, on 2022’s $103 million...
“We are also seeing incredible interest from private investors and institutional investors who want to gain a foothold on the Gold Coast but are somewhat restricted in...
Just six of the total 107 transactions recorded up until October 2023, exceeded $30 million and these were largely in the industrial sector...
While 72 of the transactions were below $5 million, with demand at the lower end of the market driven by “cash-rich private investors”...
“These buyers are less susceptible to interest rate fluctuations and have been driving demand for smaller properties below the $5 million mark, leading to strong sales performance in...
Yields have eased by 75 to 100 basis points across all sectors from their peak levels, which Colliers has attributed to caution from potential buyers thanks to the ongoing uncertainty in...
“The softening of yields is not unexpected in a rising interest rate environment as property increasingly competes with other asset classes for investment capital,”...
“However, that doesn’t reflect the continued underlying demand for quality commercial and industrial assets on the Gold Coast.”