Did you hear? The good times are back on the Gold Coast.
Our Head of Lending, Clinton Arentz is applauding the current uplift in the Gold Coast property market, which has seen valuations soar to levels not seen since the Global Financial Crisis (GFC) rocked developer holdings in 2008.
“South East Queensland’s most famous beachside playground is once again considered a genuine investment vehicle following a renaissance in residential and commercial property interest,”
“Increased activity continues to spur demand, and with vacancy rates on the revitalised Coast at an all-time low, investors are getting premium returns on their commercial premises. It’s a healthy market… It’s had its growing pains but the Gold Coast is now a fully-fledged city. Investors and developers are recognising what it has to offer and are eager to get involved.” – Clinton Arentz
Clinton’s thoughts on the current state of play of the Gold Coast are further supported by Property Council of Australia research, which noted recent reductions in office vacancies of between 0.3% and 3.1% across the Broadbeach, Bundall, Robina and Surfers Paradise business precincts. Collectively, the Gold Coast office vacancy as at January 2018 was 10.6%, far superior to the Brisbane CBD, which rests at 16.1%.
Competition for office assets is fierce and international stakeholders are powering the renewed interest, with enquiries coming from cashed-up investors and developers from Taiwan, China, Japan, USA, New Zealand and the Russian Federation.
This global recognition of the Gold Coast reflects an appreciation of its evolution from predominantly a tourist destination with a transient population, to a thriving hub of business, education and innovation.
The conference industry is already injecting AU$2 million into the local economy each week, while the multibillion-dollar Gold Coast Health and Knowledge and Cultural Precinct will support employment and deepen the city’s affiliation with technology development, cutting-edge scientific and medical research, and the burgeoning arts and event landscape. The transport sector alone has seen a billion-dollar infrastructure spend to cater for the 2018 Commonwealth Games – an event set to spark further interest in the city as 670,000 visitors descend on the region and a global audience tune in to the coverage via print and digital media outlets worldwide.
With new proposals for premium projects and urban development gaining traction along the length and breadth of the coast, we’re anticipating this momentum isn’t driven by speculative investors or bargain hunting opportunists, it’s a natural progression being energised by the market itself as it recovers from the shock of the GFC a decade ago.
The reasons why investors are choosing to ‘chase the sun’ on the Coast are now many and compelling.
It’s not too early to call. The Gold Coast is back.
For more on the Australian property market, read how we’re watching the property clock or if you’re considering your own investment in property the market, check out Trilogy’s investment opportunities on offer.