Queensland was hit hard by the 2009 Global Financial Crisis (GFC). The property sector, retail industries and commercial market all felt the dire impact of the crisis – but since then, the state has been bouncing back strongly. Construction activity hit new highs, investment is rife and tourism is supporting the economy like never before.
As well, the Australian commercial property market is continuing its uphill climb and shining bright on a global stage, something that will whet the appetite of potential investors in Surfers Paradise. The latest Property Council/IPD Australia Index result shows that the country is performing strongly against international markets, with property returning great profit and the industrial sector leading the way.
With declining interest also expected to boost economic activity, Surfers Paradise investors will relish the blossoming commercial sector.
IPD worked with the Property Council of Australia to develop this latest commercial property index, tracking how 1,339 assets are faring across Australia up to December 2014. The report pointed to a hugely favourable result for the market, showing that the commercial sector experienced a gradual improvement over 2014.
Commercial property recorded a 10.6 per cent return in the final quarter of last year, which is an increase of 0.6 percentage points over the September quarter.
It could be a profitable 2015 for property investors in Surfers Paradise. While IPD said that the industrial property sector returned the strongest results to December last year, hotels across the country also recorded encouraging returns. The report showed that industrial properties returned 13 per cent on investment, with hotels just shy of this at 12 per cent.
This is an auspicious sign for those thinking about commercial property in Surfers Paradise. According to Tourism Research Australia, the volume of international visitors rose 8 per cent in September last year, with Asia rapidly becoming a tourism source; domestic tourists are picking Queensland as the local destination of choice; and hotels, hospitality and other tourism industries are expected to reap the rewards. This latest news further confirms that southeast Queensland could continue to offer some great investment results.
While this news is a useful guide for investment opportunities, a commercial real estate professional will also give you some great advice and a bevvy of local knowledge so you can make an informed property choice.
Not only are industrial properties and hotels performing well for investors, IPD noted that all major property categories experienced an upswing last year. Both retail and office grew in line with the overall improvement, showing returns of 10.7 per cent and 10 per cent.
Retail in particular looks to be on the up and Queensland is leading the recovery. The Australian Bureau of Statistics released its retail trade figures for December 2014, revealing that national retail turnover continues to rise. The figures show that retail returns grew 0.2 per cent in December, off the back of 0.1 per cent and 0.4 per cent rises in November and October 2014.
Queensland consumers spent up large in December, surpassing all other states in seasonally adjusted terms. The Sunshine State lived up to its name and turnover grew a bright 0.6 per cent. Surfers Paradise property investors will relish this promising result, as it could indicate that consumers are feeling more confident with the Australian market. As well, not only does rising retail expenditure mean higher returns, it is a welcome boost for the state economy.
With commercial property in Surfers Paradise reaping the benefits of improving conditions nationwide, it could be a good time to get in contact with a local agent. Whether you are thinking about retail property, trying your hand in hotels and pursuing industrial opportunities, the commercial real estate experts at Ray White Surfers Paradise can help you find a property to meet your requirements.