“No sign of slowdown”

THE Gold Coast is in for a “Goldilocks” economy post-Commonwealth Games — not too hot, not too cold but just right to continue to tempt a wave of property investors and developers.

According to a new Colliers International report, the city’s prevailing strong property market is showing little sign of slowing down.

Amid speculation about what will become of the Glitter Strip’s property market once the excitement of the Games subsides, the report — ‘What next for the Gold Coast property sector?’ — outlines five key factors why it won’t run out of puff.

They include employment and population growth, rising tourism numbers, investment in infrastructure and major projects, and record median house prices.

Colliers’ Gold Coast director Darrell Irwin said the property market was healthy across all sectors, with an increase in inquiry, particularly from tenants in the commercial and industrial sectors, but also investors and developers.

“All of the property market indicators show that we have a healthy sector,” Mr Irwin said.

“The Games has brought forward infrastructure investment in projects such as the light rail construction, and upgrades to the aquatic centre and Carrara Stadium, which have helped fuel demand across the board in the residential, commercial office, retail, and industrial sectors.

“We’ve seen commercial office vacancy rates continue to fall over the last three years to the current level of 10.3 per cent as reported in the most recent Property Council of Australia figures.

“With no new office buildings under construction, we expect to see that vacancy rate fall further.

“Similarly in the industrial market, there’s been strong demand, a falling vacancy rate and limited land supply.”

Commercial hot spots include Broadbeach, Surfers Paradise and Robina.

Industrial hot spots are Arundel, Molendinar and Yatala — driven by rising land and building values. A lack of industrial land supply in central Gold Coast will continue this momentum.

Mr Irwin said residential development hot spots include Broadbeach and southern Gold Coast, Hope Island and northern Gold Coast, and Robina/Varsity Lakes.

Colliers research manager Helen Swanson said the residential construction and tourism sectors were tipped to experience strong growth during the next five years.

The median house price on the Gold Coast has grown by almost 8 per cent in 2017.