The Gold Coast is ramping up its strategy for development and the housing market is beginning to strengthen, but how will it impact the commercial market?
A stronger housing market will see people come into the region because of the promise of growth and good financial return, but with an influx such as this, retail leasing also set to benefit. A greater population will increase demand for offices and jobs, and businesses will be making their own moves to capitalise on the region's expansion before they are left behind.
Through the December 2015 quarter, median rent prices in the Gold Coast increased by 3.9 per cent to $499 per week according to CoreLogic. Further into Queensland the effects have been felt too, as Brisbane median house price experienced a 4 per cent growth on the previous year.
According to a BIS Shrapnel news release, the Gold Coast has been able to appreciate in keeping with the Queensland capital because of interstate travel to the region. On the back of market data such as this, housing has been in high demand as demonstrated at Ray White's 'The Event' in late January.
Approximately 100 properties went to auction in just one day, and more than $33 million worth of property was sold. These numbers are indicative of the greater market around the Sunshine State region. Combine this with the City of Gold Coast's Economic Development Strategy 2013-23 (EDS) and the plan to significantly increase the standard of living for the wider area, and the suburbs surrounding the beach city will receive a welcome boost as well.
The National Institute of Economic and Industry Research (NIEIR) found that the largest sector of the Gold Coast was retail trade, which generated more than 35,000 local jobs in 2014. That was before the strength of the region began to increase.
Now with notable growth and further projected improvements, retail leasing in the Gold Coast will be in high demand. As the largest sector, it will be seen as the best way for people to find employment, and so more businesses may be looking to open up stores to take advantage of the greater population. The EDS also stated that by 2023 the Gold Coast aims to improve the rate of employment by 23 per cent, which is good news for people wanting to get into the property market in the region.
NIEIR also reported a Gross Regional Product (GRP) of more than $25 billion by the end of June 2014. Within the next seven years, the EDS aims to increase GRP even further to 18 per cent per capita. Furthermore, a 22 per cent increase in productivity is a part of making the Gold Coast a more profitable industry and productivity in the workplace can only be good news for retail business owners.
As the housing market goes from strength to strength, retail leasing in the Gold Coast will follow suit to meet the demands of an increased population. Businesses will begin to recognise how effective a move into the Sunshine State could be and that will be excellent news for property owners or investors.
The need for retail spaces will increase and therefore become more competitive, setting the stage for growth within the commercial sector as well. Getting into the property market for retail and office spaces in the Gold Coast could be a shrewd financial move with the planned development of the region, and Ray White Surfers Paradise can help.