The strength of the residential property market has a big influence of the potential for investment in commercial real estate in Surfers Paradise, and is something that should be taken into consideration before you purchase in the Gold Coast region. Keeping this in mind and taking note of local property news is a great way to inform yourself, as well as gain an insight into the investment potential of a local community.
For example, the latest ANZ/Property Council Survey has highlighted the increasing confidence of people moving into the Queensland property market, ranking it as the second strongest state in Australia. In fact, over the last quarter, Queensland has seen its confidence index grow by seven points up to a huge 143 points – which is eight points higher than the national confidence average for the country.
What this means is that people are feeling far more willing to invest their time and money into the Queensland property industry – both residential and commercial – due to the strength of the region's economy, upcoming infrastructure projects and other factors that can affect attitudes towards a real estate market.
Acting Queensland executive director of the Property Council of Australia Chris Mountford said this was the fifth consecutive month that Queensland has grown above the national average for confidence, tracking behind only New South Wales as the most positive state for investment in the nation.
"In a positive sign for the Queensland economy, respondents expect strong growth in their forward work schedule and staffing levels over the next 12 months. Additionally, capital growth expectations for the retail, residential, industrial, hotel and retirement living sectors are firmly planted in positive territory," said Mr Mountford in a 16 October statement.
One area that did see some lacking was office buildings in the central business districts across the state. There are multiple opportunities for the development of new projects in these areas, which could be filled by smart investors looking to create a portfolio in a developing area. Mr Mountford went on to say that emphasising and fostering the growth of these central business districts would be crucial to the continued strengthening of the state's economy.
This view was reflected by ANZ Senior Property Analyst David Cannington, who said new economic markets like property were emerging across Queensland as the mining sector continues to lose influence over the Sunshine State.
"Housing market conditions have also broadly improved, although remain divergent across the state, with upbeat conditions in Brisbane and south east Queensland, while regions exposed to the mining and resources sectors are underperforming," said Mr Cannington.
Furthermore, he stated that while commercial office property prospects were trending low, the outlook for capital growth and employment in retail, hospitality and healthcare were all moving upwards in strength. This offers some insight into the confidence of the Queensland economy as a whole, which could be encouraging for investors looking to secure the next piece of their portfolio in the near future.
Finally, multi-unit sales have seen some growth over the last few months, which could be encouraging for owners of commercial property in Surfers Paradise's central business district. The latest release from the Housing Industry Association has found a huge 11 per cent increase in multi-unit sales nationally over September, reinforcing the strengthening market expected to be seen over the 2014/15 financial year.
As more people begin to move into this type of property across Australia, the potential for future economic growth expands. Now could be a great time to get in touch with a local real estate agent to discuss the most suitable investment route to consider, and begin working towards your commercial portfolio expansion today!