Gold Coast office vacancies remain at record lows as pressure grows on market
A shock new report has revealed vacancies in one area of the Gold Coast’s property market will remain under pressure for at least another two years. FIND OUT WHY
Property
Don't miss out on the headlines from Property. Followed categories will be added to My News.
Office vacancies remain at near-record lows across the city, with high demand seeing available space in Broadbeach plummeting to the smallest on record.
The vacancy rate for the dining and tourist precinct sits at just 3 per cent, taking the mantle as the city’s tightest market rate.
The latest figures, released in Colliers’ market overview, show Broadbeach’s vacancy rate dropped from 7.5 per cent earlier this year.
However, it’s a rosier picture in Surfers Paradise where available space has actually increased from 8 per cent to 9.3 per cent.
Steven King, Gold Coast director in charge of Colliers, said there had been changes in the market this year.
“Surfers Paradise has seen negative net absorption in the most recent half-yearly data, but much of this is due to the lack of new prime-grade office developments in the precinct for some time,” he said.
“The precinct, which has been a mainstay for office development since the 1960s and 1970s, has a much higher concentration of C-grade and D-grade stock than any other office market on the Gold Coast, and this has led to many tenants vacating the area in favour of newer accommodation in other precincts.
“The exodus more broadly reflects the growing demand for prime office space on the Gold Coast, a trend we have seen flip vacancy rates for A-grade space quite dramatically in the past three years.”
The report also revealed that vacancy rates had plummeted in Robina and Varsity Lakes., falling from 18.8 per cent in January 2021 to 6.3 per cent today.
“The A-grade office market has gained a considerable uplift since the pandemic due to local and interstate business expansions as well as interstate relocations as more businesses are identifying the Gold Coast as a key market for professional services in particular,” Mr King said.
“This trend has been emerging for some time and, unfortunately, we anticipate that tight market conditions for prime-grade office stock will continue due to a lack of new supply coming into the market.”
The report also warned vacancy rates would remain a cause for concern in coming years.
“With no new supply until 2026, we are anticipating that pressure on vacancies will increase further,” Colliers research associate director Pragya Sharma said.
“As employment rises, office space demand is set to outpace supply, exacerbating the shortage unless we see new developments getting underway.”
SURFERS PARADISE SALE
An office block in the heart of Surfers Paradise has sold for an undisclosed summed.
The 296sq m space, on level five of the La Promenade building on Orchid Ave, has four fully fitted offices and classrooms, as well as two bathrooms and a separate kitchen.
The deal, brokered by Canford Estate Agents, will see its new owners take control of the site after a recent refurbishment.
“With its ideal size and strategic positioning, this property is poised to provide substantial exposure and functionality for various professional uses,” Canford said in a statement.
“Strategically positioned just 200m from the world-famous Surfers Paradise Beach, the site enjoys exceptional connectivity to transportation, with proximity to the Surfers Paradise light rail station and easy access to major transportation links, including prominent shopping centres and Gold Coast International Airport.
“This location proves favourable for residents, visitors, and businesses alike.
“(It has) centre zoning with a land holding of 2474sq m allowing for comprehensive development potential.”
La Promenade fronts the Orchid Ave party precinct, with its ground level home to La Porchetta Italian restaurant and Fabric nightclub.
More Coverage
Originally published as Gold Coast office vacancies remain at record lows as pressure grows on market
First look: Giant ‘sky-mansion’ tower on quiet residential street
Plans for a giant riverfront tower, which will boast the Gold Coast’s largest penthouse, have been unveiled for a residential street which have been high-rise free until now.
Experts make major rate call
Aussies are doing what the Reserve Bank of Australia is asking and cutting back on spending, but they might need to wait nine months for a reduction on their mortgage.
RBA makes call on mortgage stress
Aussie mortgage holders are in theory the most exposed to interest rates rises in the world, yet there is little evidence of a mortgage cliff, the RBA said.
How much Qld home values have soared since Albo was elected
Home values have soared by up to 30 per cent in every Qld federal electorate since 2022, with housing tipped to be a key concern for every voter. Search your electorate.
Home price changes under Albo: each seat revealed
Exclusive new data has revealed how much housing affordability has changed in each federal electorate since the last election.
‘Critical moment’: Melbourne homebuyers’ weekend warning
Buyers are racing to secure a new home before the Christmas countdown begins. Here’s how they’re doing it, and why experts are advising to “seize the opportunity now”.