Construction confidence across Australia is being driven by commercial property in the Gold Coast.
Master Builders runs an online survey each quarter of the year, asking builders across the states and territories about their current business conditions, and gauging their confidence for the future.
According to the results, most areas in Queensland are remaining steady, but the Gold Coast has been a standout performer.
When it's boiled down, if the builders are happy and confident with their business outlook, it's reasonable to assume that there is hot demand from investors for commercial property.
In fact, according to CoreLogic RP Data, the auction clearance rate for commercial property across Australia was 71.9 per cent for the week ending August 7, as opposed to just 60.8 per cent 12 months earlier.
Therefore, is it a good time to invest in commercial property for sale in Surfers Paradise?
After experiencing a drop in the last quarter, the conditions for builders and their outlook to the future remained unchanged. This fall has happened on the back of strong gains last year.
The report also revealed that the golden days for builders were between 2003 and 2007, where confidence was extremely high with a plethora of construction projects on the books.
General consensus from builders on the profitability of their businesses is currently sitting just below satisfactory. There could be a range of factors contributing to this, one of the main factors being the prospects for non-residential building, which is currently occupying negative territory.
Furthermore, the research shows that businesses are reluctant to invest across the majority of industries in Australia, with one of the main reasons being the aftermath of the mining boom.
Commercial property for sale in the Gold Coast has been the black sheep when it comes to the relatively flat attitude towards the construction industry.
In an August 18 interview with the Brisbane Times, Master Builders Deputy Executive Director Paul Bidwell asserted that the "driver of growth" has been south-east Queensland, the Gold Coast in particular.
"The good news for the construction sector is that, relative to the wider economy, it is expected to perform strongly. And within the industry there are a significant number (37 per cent) that expect the industry to improve further," he said.
The optimism for commercial property for sale in the Gold Coast has perhaps been amplified by the influx of foreign investment, not to mention the favourable interest rates.
This increased confidence from builders in regards to the Gold Coast is positive for those in the market for property, as the surge in supply of commercial property has the potential to bring prices down.
The thoughts of Australian builders are important to take note of when searching for a location to purchase property. They are in the frontline and as such can hold unique insights about the real estate industry.
You can buy commercial property in Surfers Paradise armed not only with a low cash rate, but also the knowledge and confidence that you're investing in an area that has been proven to perform, with a positive future outlook.
If you would like to know more about commercial property for sale on the Gold Coast, you should get in touch with the team at Ray White. We have clients across the world who are taking advantage of the local conditions.
We can help you reach your business goals, by finding commercial property that meets your financial standing, future plans and desires.
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