While it has been noted that business confidence in Queensland is not peaking at the moment, there have been bright spots among the flatter trend. For example, we saw that confidence actually saw a slight rise recently, and certain sectors are leaping ahead of others.
The latest ANZ and Property Council of Australia (PCA) survey is described by the PCA as the largest measure of how Australian industry is feeling, as it takes responses from more than 1,800 bodies nationwide. Chris Mountford, Queensland executive director for the PCA noted that the index for the Sunshine State dropped from 139 to 125 based on March results, but it is worth remembering that a score of 100 is a neutral result.
This means that our business confidence is still on the positive side – and considerably so in the following areas, which will be useful information for anyone interested in Surfers Paradise commercial real estate.
While the office sector experienced a negative patch in March, our retail industry surged ahead, clocking the highest growth expectations of any state or territory. This could be in part due to trends highlighted in a recent IBISWorld report, which stated that international retailers are moving further into Australian markets with homewares.
"If the market penetration of fast fashion companies' homeware and furniture ranges matches that of their fashion ranges, we anticipate annualised double-digit growth in this area over the next five years," said senior industry analyst Laura Magner.
Owning commercial property on the Gold Coast could be a fast way to generate strong yield, especially if these companies start to compete for prime real estate, pushing up demand and consequently prices. The team at Ray White Surfers Paradise are well versed in finding people property for retail leasing on the Gold Coast, giving you a clear forward path.
The other area identified as a strength for Queensland in the ANZ and PCA report was residential growth, which is stated as bringing excellent capital returns to the economy. This is particularly important for Surfers Paradise commercial property, given the high number of apartment blocks in the area.
According to 2011 data from the Census, there were 6,425 apartment or unit dwellings in Surfers Paradise – comprising 74.7 per cent of all homes in the suburb. This means that growth in residential is likely to mean a significant rise in apartment building. Getting in on the ground floor of these projects, or purchasing an entire block yourself could result in great profits and growth down the line.
Closing the ANZ / PCA report, Mr Mountford noted that there were concerns about the long term growth of Queensland business, particularly in terms of how the state government managed development and policy.
"We have been encouraged by the level of engagement from the Queensland government, however, the industry now needs certainty through continued planning reform and the Queensland government standing by its commitment to no new or increased taxes," he stated.
"This survey reinforces the importance of governments providing stability and certainty to foster confidence for the property industry to create jobs and grow the economy."
It remains to be seen if the commitments will be held to, but this could create excellent conditions for further investment in Surfers Paradise commercial property. Making the most of sectors that are currently performing very well could yield excellent results, especially with the anticipated growth in retail highlighted by IBISWorld.
To find out more about commercial or industrial real estate in Surfers Paradise, get in touch with our local Ray White team. We have in-depth knowledge of the area, where development occurs, and which properties could add value to your long term strategy.