RETAIL TIPPED FOR STRONG GROWTH

STRONG interstate migration and low unemployment is set to fuel growth of retail assets on the Coast, particularly in northern suburbs such as Ormeau, Oxenford and Nerang.

The latest Colliers Radar report on the Gold Coast market tips a positive outlook for the economy with retail showing the most potential for growth, driven by tourism activity and population and employment growth.

Colliers International Gold Coast director-in-change Steven King said the international tourism and education sectors will be boosted by the lower Australian dollar, leading to greater demand for retail property.

“We have seen $500 million worth of investment in new retail developments in 2018, such as the $470m Westfield Coomera, which is a testament to owners’ optimistic outlook for the retail sector over the short-tomedium term,” Mr King said.

“Low regional unemployment, population growth and consistent net interstate migration is supporting the retail activity and demand for future retail centres. Residential hot spots like Ormeau, Oxenford and Nerang are desired locations for future retail development.”

There was $465 million in retail sales last year, with yields spreads 100 basis points better than the Sydney and Melbourne markets.

Colliers researcher Karina Salas said it was not just the retail market that has a positive outlook. “The Gold Coast office market is solid, considering the current prime-yield spread of 200 basis points compared to the Brisbane market,” she said. “The performance of the leasing market is also gradually strengthening.”