QLD MARKET OVERVIEW
QUEENSLAND
QLD Market Overview with Nick Dowling What are the key market trends occurring throughout 2022 in your region? There is still healthy demand for
investment planned for the region, we are no longer just a tourism based economy with sectors such as health and education playing much greater roles in our economy. Investors have picked up on this and see it as a much more stable place to invest. Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years? From an investment perspective, we used to have a relatively small pool of private local investors to target with a few active interstate investors. We are now transacting over 50% of our stock to interstate investors and at the larger end, the trusts and syndicators are coming into our market. We have also seen a large increase in buyers agents active in our market over the past 18 months. What types of assets are most in-demand given the current environment? Anything industrial and premium investments offering long term leases with strong covenants are definitely the most sort after assets at the moment.
investment stock across all sectors although yields seem to be plateauing. Our office and industrial sectors are also very buoyant from both a leasing and sale perspective. Enquiry levels have remained strong but the number of buyers making offers has reduced. What have been the fundamental drivers of demand amongst buyers? Our region has a lot going for it at the moment. First and foremost is the lack of supply across the board which has, in part, been driven by strong interstate migration. The capital investment in major development projects and infrastructure in recent years has also been a fundamental driver for demand. Eg. New major hospital, upgraded runway at the airport, upgrades to the Bruce Highway, major new residential developments such as Aura and Harmony and the new Maroochydore City Centre. With more capital
NICK DOWLING Managing Director Colliers Sunshine Coast
58 –April / May 2022
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