Commercial and industrial properties on the Gold Coast are offering some of the best value since the post-GFC of a decade ago – and we’ve got the property boom in the southern states to thank for it, says one of the Gold Coast’s leading commercial property agents.
Greg Bell, who heads up the commercial and industrial arms of the Ray White Surfers Paradise Group, says the Coast now offers some of the best returns in Australia with southern investors looking north of the Tweed because of its great value.
“We are seeing a big uptick in interest on the Gold Coast, particularly from Sydney investors, because quite simply there is such great value here,” said Mr Bell.
“We are seeing yields of between 7 and 8 per cent on the Gold Coast which is almost double that of Sydney for the same types of properties.”
“This comes down to the value proposition represented on the Gold Coast coupled with historically low vacancy rates – particularly for industrial and general commercial properties in central and northern Gold Coast locations.”
“Sydney in particular has seen such dramatic price growth across various property sectors that southern investors are now at a tipping point and are looking to high growth areas the Gold Coast for opportunities.”
“We are seeing it with a lot of out of towners bidding at auctions in recent months.”
Industrial, retail and office vacancy rates managed across all RWSP offices were around 7% – almost four times lower than a decade ago.
Mr Bell said investors were increasingly seeking simplicity with their investments.
“Buyers tend to be more conservative and focussed on where they can get solid, well tenanted properties that produce strong yields over a long period of time,” he said.
“Because of the value proposition posed by many Coast commercial properties, if there are secure long-term tenancies, buyers are very keen to secure their investment.”