The Gold Coast market has been in strong demand during 2017, volumes of sales however were a little quiet during the start of the year with many owners opting to hold assets. As the year has gone on, more owners have looked to cash in on the rapidly reducing yields resulting in more properties coming to market.
During the 3Q 2017 there have been $417.66 million in transactions across Gold Coast with the Office and Retail market in greatest demand representing $144.03 million and $167.78 million respectively due to a couple of large landmark sales for the region. This is up 53.35% on the 3Q 2016 where $272.35 million sold and again an improvement on the 3Q 2015 result of $153.21 million.
This has brought the total year to end of 3Q sales to $693.76 million across close to 300 transactions. This is vastly up on the same period in 2016 where $558.84 million changed hands representing just 105 sales. The major change in the investment profile between 2017 and 2016 is the greater move back to Development Site sales which now account for close to over a quarter of all sales this year, compared to just 6.10% last year, conversely during 2016 Hotel sales represented 34.24% of the total pool of investment.
Gold Coast sales during the first half of 2017 were strongly dominated by small Industrial sales, these assets had an average sale price under $1 million highlight the ongoing local private investor and owner occupier demand in this market. Similarly, smaller retail holdings and strata office suites also dominated the investment pool at a price point which encouraged competition amongst buyers during this time of low interest rates, putting downward pressure on yields.