QLD MARKET OVERVIEW
QUEENSLAND
QLD Market Overview with Steven King Please take us through the current market dynamics across the Brisbane/SE QLD region, what is your gauge on the level of transaction activity taking place.
price escalations. While the Brisbane/SE QLD region economy has not been immune to the current economic uncertainty, the long term fundamentals are expected to underpin a positive long-term outlook however. Reflecting on the past twelve months or so, has the market shifted in any material way, for example increasing appetite from interstate investors or developers, and if so, what have been the impacts. In the development space we were seeing well credentialled interstate developers and new entrants into the Gold Coast market who typically hadn’t had much exposure to Southeast Queensland. These developers were attracted by strong migration, the success of residential sales over the last two years and the region’s strong long-term fundamentals. A lot of development sites are having to be reassessed currently however in order to remain feasible. With investment property we saw the strong emergence of institutional capital across our larger retail and office assets when the cost of debt was so low, Institutional interest has since slowed a little, interstate privates have been very competitive and have forced local privates to pay more to outbid in most instances.
Transactions and enquiry activity slowed past month, down from the high levels experienced 1st half 2022, enquiry remains however the volume has dropped, and buyers are now acting with caution factoring in more risk due to current economic uncertainties and continued interest rate rises. We are currently experiencing a more reserved marketplace, with buyers no longer fearing missing out, buyers are becoming more calculated, and they fear more now overpaying. How would you evaluate buyer sentiment across the market, which asset classes are performing strongly and what are the factors at play that are generating such interest in these sectors? There has been a change in market sentiment to what we would best describe as a ‘more normalised’ market. The pace of sale activity over the last financial year was unprecedented and this has dropped to much more of a moderate level in the past month. The assets performing best are Long Wale tenanted assets or Value add opportunities. In the development site market, major players such as Harry Triguboff who recently purchased a large site here in Surfers Paradise gives significant confidence to the long-term prospects of the Gold Coast and South East Queensland and there are a number of developers from interstate and locally still running the rule over sites despite the development sectors current headwinds as a result of construction
STEVEN KING Director - Investment Services Colliers
With regard to development sites in particular, can you give us an
understanding as to the profile of buyers that are transacting in this space, who are the most active buyer groups (local, interstate or international) and what are the characteristics they’re looking for in terms of ideal size, scope, price-range etc. And then with regard to development
68 – August / September 2022
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