Market Overview - QLD
QLD Market Overview from Roland Evans Canford
Q. What are the key market trends occurring throughout 2021 in your region? A. Insatiable demand across all sectors of the market with little supply and high demand driving prices upwards. Q. What have been the fundamental drivers of demand amongst buyers? A. Lifestyle and health security offered by the Gold Coast has generated demand from interstate buyers during the Covid-19 pandemic. The Gold Coast has not escaped the attention of over- seas buyers especially from the UKwho we predict will become major investors in SE Queensland over the next few years. Q. Reflecting on recent transactions, what has been the pro- file of buyers and has this shifted from previous years? A. The buyers are nowmore property intellect and sophisticated and are seizing on the opportunity of demand on the Gold Coast whereas traditionally they have stayedwithin their own state or capital city. This impact will change the course of the Gold Coast for the foreseeable future. Q. What types of assets are most in-demand given the current environment? A. All sectors are in high demand. Expediential sales rate of residential homes and pre-sales of apartments together with any asset that has an income yield attached. Residential rentals are also in high demand from local and interstate prospective tenants driving demand. Q. Howwould evaluate the impact of the past eighteen months in your local market? A. The dynamics of supply and demand continue to have a dramatic effect overall sectors of the Gold Coast property market. Unseen levels of demand are driving prices to unseen levels with no sign of abatement frombuyers.
Q. What are your expectations for the commercial property market over the next twelve months? A. Little or nomajor movement due to vendors inability to replace existing investments. Interstate relocations and the upcoming Free Trade Agreement with the UKwill compress yields further. However, the biggest risk is inflation which will have amajor baring on the local economy and property market. Lack of materials are driving up construction costs with builders reluctant to quote due to the escalating cost of material and labour. The knock-on effect is developers and builders are starting to get nervous about being able to derive a profit from their projects. If unchecked this will have a waterfall effect on the property market as a whole. Q. Talk us through the most significant deals you have transact- ed thus far in 2021. A. We have been instrumental in achieving some of the largest transactions on the Gold Coast for a number of years setting benchmark figures. The following two examples are from this year where we were able to set a newbenchmark for beachfront land and amalgamate amajor development footplate in a very constricted suburb. The sale of Surfers Royal in Northcliffe Terrace was at $20,000m² and is nowbeingmarketedwithmuch success as the new “Royale” development setting new standards for beachfront apartments. We were also successful in amalgamating 37 owners over 7 properties to forma 4000m² development site inMain Beach which will next year become the new two tower “Lagoon” development. We recently transacted the sale of the retail outlets at 2506 Gold Coast Highway better known as the KFC & Sizzler site inMermaid Beach. This represented a 2.5%yield on income with development upside. We will be announcingwhat we believe to be further record-breaking sales in the comingmonths andwell into 2022.
62
Powered by FlippingBook