Market sentiment across the Gold Coast commercial market has continued to improve throughout 2016 with greater optimism that the market is on the up. The completion of the tram line, the world class upgrade of Pacific Fair and nearing Commonwealth Games has all been stimulating the market.
Couple this also with low interest rates and a heightened interest in commercial investment across the country as a broader group of investors chase returns, has reflected favourably on investment in this location.
During the third quarter of 2016 $272.03 million worth of commercial sales changed hands, this represents 66 transactions with a further 11 sales recorded with undisclosed sales value. This brings the total transactions for the 2016 calendar year to date at $558.845million or 171 transactions. This quarter represents close to half of the total years transactions given a number of high value sales including the $77.411million sale of the Grand Chancellor Hotel in Surfers Paradise.
(Q3 2015), transaction sales volumes are up by 77.56% from $153.21million. During this same time last year, we see that development site sales represented 41.65% of all sales ($63.81million) which is well ahead of this years results which saw $19.885million transact, highlighting a reduced interest in this asset class. Similarly office and retail volumes have seen significant uplift however this is due to a couple of high value transactions which has occurred rather than a sizeable increase in the number of transactions.