- One real estate agency has transacted over $31M in commercial properties during March quarter alone
- Follows strong investor demand for development sites
- Vacant warehouse and industrial sites also popular
Here at The Property Tribune, we have regularly reported on the soaring Gold Coast market.
There have been frequent acquisitions for development sites left, right and centre.
Apartments continue to be sold for record amounts. Significant volumes have been recorded in just one day of auctions too.
$34 million in transactions during the March quarter
One Broadbeach-based real estate agency, Kollosche Commercial, recorded $34.11 million of commercial property transactions during the three months to March. This included the $13.51 million sale of the development site at 215-217 Jefferson Lane, Palm Beach.
This has set a new price benchmark for beachfront land in this suburb.
Another development site at 2797 Gold Coast Highway, Broadbeach, sold for $4.3 million.
Overall, over the quarter, the agency recorded an average commercial property sale price of $2.84 million. March alone saw an average of $3.74 million.
Sales this year follow Kollosche Commercial achieving $192 million in unconditional sales last year.
Adam Grbcic, Kollosche Commercial sales specialist, said the sales highlight the ongoing demand for development sites along the Gold Coast, especially for boutique luxury projects.
“The Palm Beach site which Tony Grbcic and I sold with colleague Troy Dowker is approved for eight properties, so those will end up being high-end prestige apartments,” Mr Grbcic said.
“We received a massive 350 inquiries and 11 bidders on auction day, which goes some way to show the level of demand.
Adam Grbcic, Kollosche Commercial
“Boutique sites such as this remain firmly in demand from Broadbeach all the way to the Tweed.”
Mr Grbcic added that I wasn’t just the development sites that were attracting investors, but also freehold industrial properties and storage too.
“Demand is from both owner-occupiers and investors, who are generally looking for between 400sq m and 600sq m of building area with vacant possession or short-term leases in place.”
“We sold a vacant warehouse spanning 485 sqm in a boutique complex for $1.35 million – a gain of $905,600 since it last sold in 2003.
“We also sold a fully-occupied storage facility in Miami for $2.4 million, delivering the sellers a 33 per cent gain in four years.”
Buyers for commercial property were not just confined to one category, with interstate buyers such as those based in Sydney and Melbourne who have seen yields shrink in their local markets.
Tony Grbcic added the agency was witnessing first-time commercial property buyers coming into the market.
“These are people who have made gains in the residential market and can see that there are strong yields available for tenanted assets at an attractive price point compared to commercial property in southern markets,” he said.
“The residential market may be predicted to lose some momentum this year due to rising interest rates and the loss of the Covid factor, however, we believe, commercial will continue to gain momentum.”
