Gold Coast Commercial Real Estate Insights: May Highlights and Market Trends | with Gregory Bell and Luke Boulden

Hello, Gregory Bell here from RWC on the Gold Coast. It’s a bit cooler than we Queenslanders might like, but there’s still plenty happening in our great city. The Sanctuary Cove International Boat Show, held from May 22nd to 25th, was another successful event, featuring everything from superyachts to family fun. On June 1st, thousands gathered on Surfers Paradise beach to watch the impressive Seafire fireworks competition. This weekend, Cooly Rocks On is happening in Coolangatta with a jam-packed entertainment schedule. Later this month, the Big City Lights Festival will light up Southport. There’s always something exciting happening across the entire coast.

Why is this important? Because these events drive tourism, filling our hotels, cafes, restaurants, shopping centers, and parks. This, in turn, boosts interest in our lifestyle and ultimately, our real estate values.

On May 22nd, we held our in-room auction, featuring 15 properties, 9 of which were commercial and industrial. We sold 7 of these under the hammer for a total of $13,000,000. Who said the market is in a challenging position?

Don’t listen to the media; they often undermine people’s confidence in real estate. The reality is, it’s still a great time to sell, and if you’re a buyer, now is the time to act. Migration from down south and talks of lowering interest rates later this year or early next year are boosting buyers’ confidence. With a shortage of supply and rising confidence in South East Queensland, we’re seeing strength in the market, reflected in our auction success rates.

I’m often surprised when people tell me they don’t like auctions. They don’t understand the many advantages. Auctions create competition, bringing bidders into the room to fight for your property. It’s a cash, unconditional offer—not subject to finance or building and pest inspections. Plus, there’s a 10% deposit paid on the day, with settlement usually occurring in 30 days. What’s not to like?

As the most experienced auction office on the Gold Coast, if you’re considering selling, please give me a call for a confidential discussion about the market.

May was a remarkable month. Our commercial and industrial offices transacted over $38,000,000 from 17 sales and 14 lease deals. Industrial remains the most popular sector, but our biggest sale was a development site for $7,700,000. Luke will provide more details about the leasing activity shortly.

Before I go, I’d like to congratulate Lisa Dunne for reaching the highest recognition level in the Ray White Group, the Chairman’s Elite. Lisa has been with our office since 2010 and is one of the hardest-working agents I’ve ever encountered. Chairman’s Elite is the top tier of agents across the entire Ray White Network—a career-best for Lisa. A huge congratulations!

Commercial Property Management

Is your property manager leasing your properties on a net return or a gross return? In my opinion, rents should be rent plus GST plus outgoings, and the management fee should be included in the outgoings.

Leases should ideally be a minimum of 3×3 or preferably 5×5, with market reviews or CPI increases annually, whichever is greater.

In the first year of a new lease, inspections should be carried out every three months and then reduced to every six months thereafter.

Photos and videos should be taken during inspections, both externally and internally, and sent to the owner with a detailed report on the condition of their asset.

Leases should be registered for stamp duty purposes, and both your solicitor and accountant should hold a copy of the lease.

Your agent should provide a rental and sale assessment at the end of each financial year and communicate with you at least once per month, even if there’s no immediate need.

Your leasing agent should give you two phone calls per week and one written report per week on the activity they’re generating in leasing your property.

They should also gather necessary information from prospective tenants, including current residential address, driver’s license, trading figures where possible, trade references, previous lease references, and proof of ownership.

It’s not just about collecting commission; it’s about ensuring your commercial or industrial investment has the right tenant, providing security for the owners.

Warm Regards,

Gregory Bell, Head of Commercial and Industrial
RWC Gold Coast