Recent research has revealed it's a good time to buy commercial property on the Gold Coast.
In the National Australia Bank (NAB) Commercial Property Survey for the second quarter of 2015, figures show that sentiment among the commercial property market segments is now all positive. These sectors include office, CBD hotels, retail and industrial.
Despite this, the results differed quite significantly between states. Queensland is currently one of the most optimistic states in Australia for commercial property, while others like Western Australia and the Northern Territory are lagging by a sizeable margin.
Overall, it's great news for those considering commercial property for sale on the Gold Coast, as over the second quarter of this year the NAB Commercial Property Index soared to 11 points. This is on the back of an increase in the first quarter, and consequently it has now reached its highest level since early 2010 when the survey first began.
NAB Chief Economist Alan Oster found the data very encouraging, in particular the positive outlook for all of the commercial property segments.
"Property market professionals were more upbeat in all sectors, except for CBD hotels although it continued to rate highest overall," he said.
The confidence among industry professionals is strongest in the CBD hotels sector for next year, as they're anticipating the low Australian dollar to support a strong surge of demand from international tourism.
Further ahead, the survey respondents are more optimistic about retail property (in two years time), while office is predicted to improve notably. This is on the back of vacancy rates for commercial property in the Gold Coast dropping over the last few months.
Interestingly, it appears that the improved sentiment for commercial property is motivating developers to refocus their resources.
"Only 46 per cent of developers said they now intend to start new residential projects, the lowest figure since our survey began. In contrast, 39 per cent are looking at developing industrial, retail or office projects, up from just 26 per cent in the previous survey and the highest level in 2 years," Mr Oster said.
If you are looking to buy commercial property on the Gold Coast, you certainly picked a good time.
"Positive returns are forecast for retail and industrial property in the next one – two years, with office rents to also resume growing modestly in two years time as excess supply begins to work out of the market, especially in Queensland," said Mr Oster.
Perhaps the most telling aspect of the survey is the fact that interest from industry professionals for commercial projects is growing while residential is falling.
The results from the NAB Commercial Property Survey paint a pretty picture of what lies ahead for the Gold Coast. With the future looking rosy for all of the commercial market segments, all that's required is for you to take your pick!
Are you interested in purchasing commercial property for sale on the Gold Coast? Regardless of whether you're aiming for office, CBD hotels, industrial or retail, you should talk to the team at Ray White. We can take you through each step to achieve your commercial property goals, helping you to find the ideal property based on your objectives and financial standing from your preferred market sector