Investment activity in the Gold Coast has been robust during the first half of 2015, market sentiment has improved resulting in downward momentum in yields and recovery in the leasing market with vacancies contracting with some growth in face rents.
During the first half of 2015 there has been $716.13 million change hands in 67 transactions in the over $500,000 commercial markets (office, retail, industrial and development sites) this is in stark contrast to the $217.14 million which was recorded during the same period in 2014. Low interest rates, increased investor demand both domestically and off shore together with an increase in owner occupier interest has spurred on this investment activity. However, a greater volume of high value transactions have been recorded this year with only two sales over $20 million recorded in the first half of 2014 compared to 12 this year.
The Gold Coast office market has been particularly active in 2015 with over $82 million transacting across those sales over $500,000.
The largest transaction for the region being the Austar HQ in Robina selling for $46 million to Centuria Metropolitan representing a yield of 7.80%.
Shopping Centre sales have been strong across Gold Coast so far this year with the total retail sales equating to over $282 million including landmark centres including The Oasis Shopping Centre in Broadbeach for $103.5 million and Chevron Renaissance for $73.2 million.
Interest levels however for smaller retail assets have been strong with reported yields as low as 5.5% for well leased assets. Interest in Gold Coast property has been spread between local buyers together with international investors.