July 2017 – Gold Coast Half Year Transaction Wrap

20 July, 2017 / Vanessa Rader

During the first half of 2017, volumes remained at their subdued levels seen in 2016; Gold Coast investment activity, represented $276million during the first six months of 2017 similar to the $285 million achieved in 2016.

This continues the substantial decline in transactions of commercial sales down from $715 million during the 1H 2015. While this number is down, the total volume remains propped up by Development Site Sales which represented 46.56% during 2017 followed by Retail sales accounting for 26.73% or 32 transactions. The property type which has recorded the largest fall in transactional activity over the last two years has been the decline in Hotel and Leisure assets, this asset class represented 39.72% of all sales in 1H 2015, yet given the limited available stock to market, this category has not featured during the first half of 2017. Demand still remains for quality Retail/Industrial assets in the sub $2million price range which has resulting in continued yield compression ranging between 4.00% and 8.00% depending on property type, tenant and lease covenant.

The bulk of volume continues in the Development Site space, representing 10 sales and $30.42million followed by Industrial which is dominated by sub $1million assets totalling $22.87million across 36 deals representing yields in the 5.50% to 8.50% range.

 

 

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