Issue 55 | The Property Development Review

QLD MARKET OVERVIEW

QUEENSLAND

Chris Butters - Senior Managing Director - CBRE Queensland

Thank you for the opportunity to share your insights as part of The Property Development Review publication. Could you walk us through the performance of your business from a state perspective this year? In which divisions have you seen the strongest growth in 2024? CBRE Queensland’s diverse sector platform has allowed us to navigate challenging economic conditions by leveraging our market share in resilient business lines such as Property Management, Valuations, Consulting and the continued strength of our Occupier Leasing and Tenant Representative business lines. Notably in 2024, we have observed a significant uptick in Hotel, Retail and Debt transactions. In terms of the key thematics driving investment into your state, what have been the key considerations made by sophisticated investors and developers when deciding where and how to allocate their capital from a real estate standpoint? In terms of capital investment in Queensland, whilst allocation of capital into Office remains subdued, we have seen increased interest from private/syndicator investors into Retail, Hotels, High-End Residential and Alternative assets classes such as Data Centres, Solar Energy and Medical. Industrial remains hot albeit cap rate compression is creating challenges due to the current interest cycle. Recently, there’s been a strong rebound in market activity and transaction volumes. How are you seeing this play out at ground level, and what has been the prevailing sentiment echoed from key clients? We are increasingly witnessing a ‘flight to quality’ theme in the occupier markets, leading to upward pressure on rents. In Capital Markets, there has been a clear shift towards selling secondary assets where possible and holding onto higher-quality assets for future market growth. With regard to public infrastructure, take us through some of the major projects that will transform your state and the impact you anticipate these projects will have in terms of driving new investment and development. The pending completion of Queens Wharf, Cross River Rail Train Stations and 360 Queen Street/205 North Quay/Waterfront Brisbane office projects will be catalysts to transform

CHRIS BUTTERS

94 – August / September 2024

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