QLD MARKET OVERVIEW
QUEENSLAND
Tim Jones Director, JLL Metropolitan Sales & Investments – Queensland Looking ahead to 2024, what’s your outlook for the commercial property sector. It has been a very positive initial start to the year with a lot of new purchase mandates across both built form and development sites. Given the relatively low transactional volume through 2023 I’m confident we are going to see a significant increase through the course of 2024. With continued construction challenges/constraints, there will undoubtedly be a focus toward value add opportunities and believe owner occupiers will continue to outperform the investor market for suitable opportunities. Reflecting on conversations with buy-side clients, what’s their sentiment & what’s the profile of buyers you’re expecting to be most active this year. High net wealth privates from across the eastern seaboard will likely be one the key buyer sectors and sentiment for the SEQ market is overall very positive. Major infrastructure projects underway, a backdrop of the 2032 Olympics, relative affordability, limited oncoming supply and tightening vacancy rates are all key drivers for the Brisbane market. What are the fundamentals investors are looking for prior to deploying capital in 2024 & which asset classes do you anticipate will drive transaction activity. Despite low transactional volumes through last year, I do believe there will renewed interest in office investment opportunities particularly as yields have softened. With very little oncoming supply, I think Brisbane office vacancy is going to decline and create a more balanced tenant/landlord dynamic. And then from a developer’s perspective, what opportunities exist in your market & how should they be positioning themselves to capitalise on these opportunities. Increased construction costs are already focussing developers on higher end projects to achieve higher GR’s otherwise they are simply not feasible. Smaller scale luxury projects will continue to be highly sought after and at the other end of the market - significant, place making opportunities suitable for mixed use development in areas benefitting from density rezoning will see competitive interest. Based on your discussions with vendors / potential vendors, how are they observing market dynamics in your region & to what extent do you expect an increased volume of properties coming to market over the course of the year ahead. There will be a noticeable increase in properties coming to market across all asset classes. Our team had a noticeable increase in proposal requests from vendors through the back half of last year and across the business more broadly there will be a lot of opportunities coming to market in the first half of the year.
TIM JONES
64 – February /March 2024
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