Bargain hunters kick on

THE Gold Coast’s strong run of shopping centre sales should continue through the remainder of 2017, according to a retail market update from Colliers International.

Recent sales include Mudgeeraba Market, which sold together with the smaller Franklin Centre for $35.8 million in May.

Colliers International research manager Helen Swanson said a record number of shopping centres sold last year on the Gold Coast.

“Current indicators suggest this trend should continue on in 2017,” she said.

“Strong demand for assets offering stable income flows, located in high-pedestrian traffic areas, have been fiercely contested by private investors, self-managed superannuation funds and syndicates.”

Ms Swanson said due to strong competition, yields had tightened in the past year.

“As a result of limited stock of prime-grade retail assets, investors have looked to take greater risks and purchase assets with either a development upside and or those requiring a leasing reposition strategy.”

This has resulted in the gap closing between prime and secondary grade retail assets.