Gold Coast commercial property market sees retail sales dominant for first nine months of the year

GOLD Coast retail assets dominated third-quarter sales making up the largest value of transactions, according to new research from Ray White.

GOLD Coast retail assets dominated third quarter sales making up the largest category of transactions, according to new research from Ray White.

Between July and September $150.74 million in commercial property assets changed hands across the retail, development, industrial and office sectors.
Retail made up 41.67 per cent of the value of sales followed by industrial (24.78 per cent), development (16.34 per cent), office (11.28 per cent) and other (5.94 per cent).

The largest transaction during the quarter was the former Bunnings site at Burleigh Heads, which sold to German supermarket chain Kaufland for $19.7 million.

Neil Ferguson and John Zupp from Zupp Property Group at 140 Bundall Rd, Bundall. The sale to Zupp for $7.05 million was the top office sale for the third quarter.

That was closely followed by the Boonoroo Park Convenience Centre in Carrara selling to a Sydney investor for $10.2 million after an extensive facelift by owner Firestar Developments.

The Between The Lines Gold Coast 3Q 2018 Transaction Report, authored by Ray White head of research Vanessa Rader, shows third-quarter sales plunged 63.91 per cent compared to $417.66 million between July and September last year.

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However, the transactions for the year to date were still well above last year with $827.95 million in commercial property changing hands compared to $693.76 million for the nine months to September 30, 2017.

Retail sales dominated during the third quarter such as 2243 Gold Coast Highway, Mermaid Beach, which sold for $2.325 million.

“The investment profile continuously evolves over the years, however, this period we have seen a return to retail transactions, while the stable asset classes of industrial, tourism and development sites continue to show consistent levels of activity,” the report reads.

Ms Rader notes in the research that there was an increase in development site activity for the quarter for both residential and commercial development parcels.

The report also warns that while yields continue to remain low, the pool of buyers has reduced, which could impact the market next year.