As the property market in Queensland continues to show strong growth for the start of 2016, the economic downturn has been nerve-wracking, particularly for people wanting to lease industrial property in Surfers Paradise and on the Gold Coast.
However, it isn't all bad news.
With the downturn of the Australian dollar, plummeting to 68.5 U.S. cents already on the year, and the sliding Chinese situation, the Queensland economy has been aided by tourism.
"The slowdown in China, if it's happening, has not affected tourism into the Gold Coast – if anything it's helped, there have been record visitors" said institutional broking director of Hunter Green, Charlie Green, to the Gold Coast Bulletin.
Those record numbers of tourists could prove beneficial going forward for any business looking to buy commercial property in Surfers Paradise, a tourist hot spot. Even for businesses that want to lease retail or commercial property elsewhere on the Gold Coast, the upward spike of tourist numbers to the Sunshine State can only be a good thing. The Chinese slump is looking like it will turn into big business for Australians and anyone looking to invest and develop on the east coast.
As far as residential property development is concerned, the construction rate will decrease compared to 2014 and 2015 levels. However Property Council chief executive Ken Morrison said that "industry confidence levels remain strong, forward work levels and staffing expectations are positive, and the industry expects non-residential construction to improve".
This, coupled with the new oil price lows of US$28 a barrel (the lowest since 2003), could prove to be great news for people hoping to get into industrial leasing on the Gold Coast. Expansion is happening now.
With external visitors flooding in, the opportunity for expansion in any arena is for the taking, and ANZ chief economist Warren Hogan agrees.
"Capital growth has strengthened across most commercial property sectors, with the expectations of capital growth strongest in retail and tourist accommodation property," he said.
Tourist numbers are up. Retail numbers are on the rise too. With the Chinese economy struggling to find its feet at all, making a move into the Queensland property market and making a name for your company in a booming state of Australia is looking like a very shrewd business move. Looking to lease commercial property, or even to buy, Surfers Paradise and the Gold Coast are the places to be.
Whether your sector is industrial, retail, hospitality or accommodation, the options available to you in terms of being able to buy commercial property on the Gold Coast are endless.
According to the Australian Financial Review, investment into the Australian property market from foreign bodies is expected to remain high despite the predicted reduction in residential construction. Foreign investors will therefore be deciding to lease or buy commercial property on the Gold Coast, taking full advantage of the high tourist numbers and the low Australian dollar while it lasts.
Getting involved early will mean that your company can benefit from the higher turnover that can be expected from greater tourist numbers, and therefore higher profitability. Competition for retail leasing on the Gold Coast is going to heat up in 2016 and closer to the 2018 Commonwealth Games, which means that your business will want a strong foot in the door as soon as possible.
To find out more about how your company can get into the Queensland market and lease commercial property, contact Ray White Surfers Paradise today. We'll have everything you need.