Tweed & Gold Coast industrial is steady

THE Gold Coast and northern New South Wales industrial markets will remain steady in the year ahead, according to Colliers International.

Colliers International’s Gold Coast commercial and industrial research analyst Kim Sowry said despite the global credit squeeze, interest rate rises and share market turmoil, the region’s surging population, infrastructure improvements and the resources boom would ensure the market remained solid.

And Colliers International’s director of industrial property Pat Cavanagh said owner-occupiers were expected to continue driving demand.

“The owner-occupier market remains solid and will continue to drive the Gold Coast and northern New South Wales industrial market, despite investment sales activity moderating.

“Owner-occupiers are continuing to purchase premises for their businesses because of the ability to utilise superannuation, strength of the local economy and continued population growth,” he added.

Cavanagh said the limited supply of industrial land in the region will ensure prices remain steady, while rental rates and capital values are expected to stablise with a softening in yields over the coming six months, primarily in secondary grade property.

According to Colliers International, prime rents on the Gold Coast are ranging from $115 per sqm to $135 per sqm and secondary rents from $90 per sqm to $110 per sqm, although the central and southern areas have achieved slightly higher prime rents, averaging $120 per sqm to $140 per sqm.

In northern NSW, prime net face rents are averaging $90 per sqm to $110 per sqm and secondary rents $70 per sqm to $90 per sqm, but are expected to increase in the coming months because of limited supply and rising costs on the Gold Coast.

Cavanagh said the Gold Coast was buoyed by Queensland’s strong economy, with recent statistics from the Queensland Office of Economic and Statistical Research showing the state performed better than the rest of the nation in the September 2007 quarter.

“Queensland recorded an economic growth of 8.7% over the year, compared with 2.9% for the resort of the country, on the back of increases in consumption and investment,” he added. “Employment growth in the state is also 38% higher than the Australian average and the resources boom is playing a role by enticing strong migration from overseas and interstate, leading to a 2.2% population increase in the past year.”

Australian Property Journal