QLD MARKET OVERVIEW
QUEENSLAND
QLD Market Overview with Hunter Higgins What are the key market trends occurring throughout 2022 in your region?
How would you evaluate the impact of the past eighteen months in your local market? In the last 18 months, we have seen notable fluctuations in the market. 2021 was an upward swing with pent up demand, all time low interest rates & low stock levels creating the perfect storm to increase competition and ultimately property values through direct competition. Contrast in 2022, we have seen a softening in the market with increased interest rates as well as global influences creating uncertainty and doubt in the market. What are your expectations for the commercial property market over the next twelve months? I believe it’s going to take some time for both vendors and purchasers to work through the evolving market conditions. Consequently, it will unfortunately mean transactions will take longer to materialize.
In the current evolving market conditions, one notable trend is that purchasers are chasing existing assets with value-add potential ideally with scope to improve income in an attempt to counter anticipated interest rate rises. What have been the fundamental drivers of demand amongst buyers? Securing assets with long Weight Average Lease Expiry (WALE) and strong covenants Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years? We have seen interstate and offshore interest and demand increase as restrictions have eased and travel returns to some level of normality. What types of assets are most in-demand given the current environment? A. Premium Investments – Child Care, Medical, Fast Food etc. B. Vacant owner occupier opportunities up to 3000m2 C. Existing assets with passing income and value -add potential.
HUNTER HIGGINS NATIONAL DIRECTOR
COLLIERS: BRISBANE CITY & METRO SALES | INVESTMENT SERVICES
46 –June / July 2022
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