As property developments continue to swing upward, commercial property on the Gold Coast is welcoming a solid boost.
Alongside a quarterly fall in Sydney of 3.1 percent at the end of 2015 according to the Domain Group, Brisbane increased by 1.5 per cent and the effects of the growth can be felt down the state.
In 2011-12, the Gold Coast City Council approved 2,448 applications for developments in the area, while in 2014-15, that number increased to 3,944. Developments in the region are on the rise, and the mayor is optimistic about what that could mean for the economy.
"I'm confident there will be more investors hoping to capitalise on the opportunities ahead of us which means more local jobs," said mayor Tom Tate.
"At the moment we have around 18 cranes in the sky – three years ago there was just one; and development applications as a whole are on the up."
There is also the positive influence from the housing market, set to improve commercial property prospects around the south-east of the Sunshine State. As house prices increase, investors continue to look at the Gold Coast as a hotspot for their next move on the ladder, and owners of commercial real estate can take advantage.
"It's a positive result for Brisbane house owners, with the median house price recording its highest quarterly growth for the year," said Domain senior economist Doctor Andrew Wilson.
According to a media release from the City of Gold Coast in July 2015, the economy is valued at $25billion. Such a staggering number for a regional city will continue to draw large volumes of tourists as well as large retailers that will need to lease commercial property.
The suburb of Southport in particular is set to be a major driving force behind the continued successes of the Gold Coast region. Many of the 2018 Commonwealth Games events will be held around the burgeoning area and developments have been steadily increasing.
"All eyes will be on Southport when it hosts the swimming, diving, marathon and triathlon events for the Gold Coast 2018 Commonwealth Games," said mayor Tate.
Alongside the major projects underway in preparation for the Commonwealth Games, a new light rail project worth $1.7billion in Southport alone is making transport in the city more efficient and enjoyable. A $7million redevelopment of the TAFE Queensland Gold Coast is also going to provide a boost for the education sector, and apartments for rent around the tertiary education provider will be sought after.
In fact, Southport contributes a reported $1.2billion to the entire Gold Coast economy, which is the largest figure from any singular area.
The City of Gold Coast also predicts an increase in the population of Southport, more than doubling to 68,000 from 30,145 by 2036. More people in the region will require more accommodation, more jobs and more opportunities. With the potential for successes in the commercial market through to the 2018 Commonwealth Games, purchasing commercial property in order to provide retail and office leasing on the Gold Coast to the predicted influx of residents could be a shrewd move.
The Department of Natural Resources and Mines found in its Property Market Movement Report 2015 that value in the property sector on the Gold Coast has increased by 10.8 per cent, highlighting improvements in commercial property as well. With the whole region undergoing a proven and recorded period of growth, investing in commercial property for sale on the Gold Coast could be the best financial move you make all year.
Talk to the specialists at Ray White Surfers Paradise and see how the team can help you to make a move into the Gold Coast commercial property arena.