Gold Coast Office Market Investment Limited
Investment in the Gold Coast office strata market has been subdued in the first half of 2017 with owners opting to hold on to assets despite favourable economic conditions, says Ray White Commercial.
Ray White Commercial Gold Coast Commercial Sales Specialist/Team Leader Steven King said investment into the strata office market has been limited during the first half of 2017 with total sales of $8.555 million.
“Continued low interest rates has resulted in investors looking to spread risk and diversify their investments,” Steven King said in the Gold Coast Office Market Small Suites Report August 2017.
“This has had a significant impact on the broader Gold Coast commercial markets, in particular investment yields. Quality assets are less available, with owners looking to hold assets which has seen volumes substantially decrease during 2017, a trend we expect to see continue over the next year.
“As private, local investors are looking for alternative investment options at reasonable yields, owner occupier activity cannot be discounted particularly for small businesses opting to own their own space in anticipation of business expansion which has driven some price growth.”
Ray White Commercial Head of Research, Vanessa Rader, said turnover level has been reasonably well split across the regions with Southport showing the greatest volume with $4.08 million changing hands.
Ms Rader said Robina/Varsity Lakes and Bundall make up the majority of the remaining sales with assets sold at an average price of $442,500 and $503,250 respectively. Only one sale was recorded in Surfers Paradise and Coolangatta this period.
Ms Rader said over the last 18 months there has been a distinct improvement in the capital values achieved across the Gold Coast strata office market.
“Across the total Gold Coast strata office market, capital values have increased 3.31 per cent,” she said.