Development sites now make up nearly one in four commercial property sales on the Gold Coast, a factor that has helped propel the market higher this year compared with 2016, new figures show.
Nearly 300 commercial properties have sold in the period between January and September this year, generating $693.76 million, compared with 105 transactions of $558.84 million in the first nine months of 2016, a new Ray White Commercial report on the Gold Coast indicates.
Development site sales quadrupled its share of the commercial market from last year, catching up rapidly with other popular investments such as retail and office assets.
“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 a quarter of all sales this year compared to just 6.10 per cent last year,” Steven King, of Ray White Commercial Gold Coast, said.
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The biggest development site sale was Nobby’s Outlook at Miami, a block of 46 beachfront units which fetched $23.75 million under the hammer in early September.
The 50-year-old resort could be subdivided to small, upmarket lots for use as beachside housing. The two- and three-bedroom units could also be refurbished, demolished or redeveloped into a 220-bedroom complex with a three-storey limit under the Gold Coast Town Plan.
Ray White Commercial’s head of research Vanessa Rader said despite a quiet start the Gold Coast market took off later in the year, with about 60 per cent of sales happening in the three months to the end of September.
“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,” Ms Rader said.
Of the $417.66 million worth of properties that sold between July and September, retail sales led the way, contributing $167.78 million, while offices accounted for $144.03 million.
The most expensive deal in this period was the Brickworks in Southport, a shopping centre which sold for $137.54 million on an indicative 5.09 per cent yield.
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